Real estate research firm ValuStrat estimates that average villa prices in Dubai's freehold areas are 60% higher than the previous market peak in 2014, and 165% higher than post-pandemic levels (January 2021).
The institution revealed in its March report that capital gains for villas grew by 2% month-on-month, achieving an annual increase of 30.3%. The strongest performing areas for the year included villas in Jumeirah Islands (42%), Palm Jumeirah (41.5%), Emirates Hills (30.5%), Meadows (29.6%), and Dubai Hills Estate (28.3%).
The report stated that March 2025 saw the Real Estate Price Index reach 210.8 points, recording a monthly increase of 1.6% and an annual increase of 25.9%. Villa values rose to 275 points, while apartment values reached 169 points, all calculated on a January 2021 base of 100 points.
In contrast, apartment prices rose by 1.2% month-on-month, recording an annual growth of 21.4%, with the highest annual capital gains recorded in The Greens (27.4%), Dubailand (25.5%), Palm Jumeirah (25.2%), Town Square (24.4%), The Views (24.3%), International City (14.9%), and Burj Khalifa (17.4%).
Apartment values, on average, are 67% higher than post-pandemic levels, but 8% lower than the previous market peak. However, Jumeirah Beach Residence is the latest residential complex to surpass previous price peaks, following Palm Jumeirah and The Greens.
Ready-made vs. off-plan
Off-plan home registrations fell 7.4% month-on-month but rose 19.3% year-on-year, representing 69.7% of total home sales in March. Completed home transaction volume fell 2.4% month-on-month but was 1.1% higher than last year.
The most prominent locations for off-plan residential unit sales included Jumeirah Village Circle (9.2%), Business Bay (7.4%), Damac Island City (5.7%), Dubai Production City (5.3%), and Dubai Maritime City (4.8%).
Meanwhile, most of the ready units sold were in Jumeirah Village Circle (9.6%), Dubai Marina (6.2%), Business Bay (6%), Downtown Dubai (4.7%), and International City (3.9%).
luxury homes
Luxury property sales witnessed 23 transactions, worth more than AED 30 million, covering Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Al Barari, Dubai Marina, and Jumeirah Golf Estate.
Senior Developers
March 2025 saw Emaar (15.2%) lead developer sales, followed by Damac (9%), Binghatti (8.1%), Nakheel (4.7%), Sobha (4.1%), and Danube (2.9%).
Average price per square foot for villas
According to the report, Palm Jumeirah continues to hold the highest average price per square foot for villas, at AED 6,871 per square foot, a 41.5% increase year-on-year. The average price of a standard villa in the area is AED 34.3 million. Emirates Hills came in second, with an average price of AED 4,796 per square foot, while the average price of a standard villa is AED 81.5 million.
Jumeirah Islands moved up to third place, ahead of Dubai Hills Estate, with an average price of AED 3,089 per square foot, a 42.0% year-on-year increase, outperforming Palm Jumeirah. The average price of a standard villa in the area is AED 16.3 million.
Average sale price for apartments
The report's data showed that the Burj Khalifa area still holds the highest average price per square foot for apartments, at AED 3,652 per square foot, a 17.4% increase annually, while the average price of a standard apartment in the area reaches AED 3.4 million. Downtown Dubai came in second, with an average price of AED 2,405 per square foot, while the average price of a standard apartment is AED 2 million
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - March 2025
