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15 Aug 2025 • Economy Middle East

UAE real estate: Villa values in Dubai hit 296.9 points in July 2025, up 27.9 percent YoY

Strong buyer interest fuels growth, with off-plan properties making up 78.2 percent of total sales 
Dubai villa values surge to new heights with 1.8 percent monthly growth.
Villa values in Dubai increased to 296.9 points, representing a 1.8 percent monthly growth and 27.9 percent annual growth, according to a new report from ValuStrat.  The ValuStrat Price Index report for July 2025 provides an in-depth analysis of the Dubai residential real estate market, highlighting significant trends in property values and sales activities.
The index achieved a score of 224.1 points, reflecting a 1.5 percent monthly increase and a remarkable 23 percent rise compared to July of the previous year. This growth underscores a robust recovery and ongoing demand within the market.
The July 2025 ValuStrat Price Index report illustrates a thriving Dubai residential market characterized by robust price appreciation, increased sales activity, and a strong preference for both off-plan and ready homes. With significant yearly gains in both villas and apartments, the report indicates a healthy recovery trajectory, driven by strong buyer interest and favorable market conditions. As Dubai continues to develop as a global hub, the residential real estate sector is poised for sustained growth, making it an attractive option for investors and homeowners alike.

High-value transactions

Notable areas with strong annual performance include Jumeirah Islands (40.5 percent), Palm Jumeirah (40 percent), and The Meadows (26.5 percent). Meanwhile, apartment values reached 176.6 points, showing a 1.1 percent monthly increase and an 18.1 percent annual rise, with the highest annual increases observed in areas such as The Greens (23.4 percent) and Dubai Silicon Oasis (23.1 percent).

In terms of sales dynamics, off-plan property sales accounted for a record 78.2 percent of total residential sales, with off-plan registrations experiencing a 51.8 percent monthly increase and a 72.9 percent year-on-year growth, reflecting a strong appetite for new developments among buyers. In contrast, ready home sales rose by 16.7 percent month-on-month and 4.7 percent year-on-year, indicating a balanced market where both new and existing properties are in demand.

The report notes 26 transactions for properties priced over AED30 million, with 7 properties exceeding AED50 million. These high-value transactions predominantly occurred in upscale neighborhoods such as DIFC and Palm Jumeirah. Leading developers by sales volume in July 2025 included Emaar (11.9 percent), Damac (10.6 percent), and Sobha (8.2 percent), reflecting consumer trust and demand for their developments


Positive market sentiment

The overall market sentiment is positive, with significant capital appreciation noted in both villas and apartments. Dubai’s residential market is now valued on average at 185 percent above pre-pandemic levels for villas and 75 percent higher for apartments compared to the post-pandemic period. The average capital value for villas is approximately AED13,184,606, while apartments stand at AED1,870,607. The weighted average value per square foot for villas is AED2,795, compared to AED1,591 for apartments.

Geographically, Jumeirah Village Circle emerged as a top location for both ready and off-plan sales, capturing 14.7 percent of ready home transactions. Other notable areas include Business Bay and Dubai Marina, which continue to attract significant buyer interest. The report suggests that the market is likely to continue its upward trajectory due to ongoing demand and economic stability, supported by government initiatives aimed at attracting foreign investment and a growing expatriate population, contributing to an optimistic outlook for the future.

For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - July 2025