The analysis by Valustrat reveals that villas have been the strongest performer in Dubai’s property segment. The average price of villa’s grew by 2% in May alone, while the year-on-year change is at a remarkable 29%. The strongest annual performers included villas in Jumeirah Islands (41%), Palm Jumeirah (40%), Emirates Hills and The Meadows (both at 27%).
Overall, Dubai’s freehold villas are now valued 66% above their 2014 market peak and 175% higher than post-pandemic levels, driven by the steep growth of high net worth individuals residing in Dubai.
Apartment prices have also shown steady appreciation, with a 1.1% month-on-month increase and an annual growth rate of 20%. The highest yearly capital gains were seen in The Greens (24%), Dubai Silicon Oasis (23%), Dubailand Residence Complex (23.%), Palm Jumeirah (23%), and Town Square (22%).
In contrast, the lowest capital value increases were recorded in International City (11%) and Business Bay (16%). Apartment valuations in Dubai are, on average, 73% higher than post-pandemic levels.
Further growth on the horizon
According to ValuStrat’s forecasts, property prices in Dubai could increase by another 10% before the end of 2025. Growth will moderate somewhat from the current highs as the market matures and approaches a more balanced supply-demand dynamic.
On the longer term, a growing population and demand for housing is expected to sustain pressures in Dubai’s residential property market, said ValuStrat in a previous report released this year.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - June 2025
