Dubai continues to consolidate its position as a leading global destination for real estate investment, with Palm Jumeirah and Burj Khalifa still topping the list of locations with the highest average price per square foot for villas and apartments. These locations have become symbols of luxury and smart investment, driven by strong demand from elite investors for luxury real estate.
Both Palm Jumeirah and Burj Khalifa represent some of the world's greatest engineering achievements, and Dubai's bets on the success of these two areas and their potential as investment, tourism, and economic powerhouses have certainly paid off. Today, both sites continue to thrive, fueled by strong demand from local and international investors for all types of real estate in both areas.
According to a June report by global research firm ValueStrat, the Palm Jumeirah area continues to hold the highest average price per square foot for villas, at AED 7,455, a 40.5% year-on-year increase and a 2.7% month-on-month increase. The average price of a standard villa in the area rose to AED 37.2 million.
The Burj Khalifa area continues to hold the highest average price per square foot for apartments in Dubai, at AED 3,763 per square foot, a 15.8% increase year-on-year and a 1% increase month-on-month. The average price of a standard apartment in the area rose to AED 3.5 million.
Market in June
The report indicated that capital growth in real estate continues, albeit at a slightly slower pace, with prices in more locations exceeding previous peaks, while transaction volumes declined monthly, and completed property sales represent less than 30% of total activity.
June 2025 saw the ValuStrat Price Index reach 220.8 points, marking a 1.5% monthly increase and a 23.9% increase since June of last year. Villa values rose to 291.6 points, while apartment values reached 174.7 points, all calculated on a January 2021 base of 100 points.
Villa capital values grew by 1.9% month-on-month, recording annual gains of 28.7%. The strongest performing areas on an annual basis included villas in Jumeirah Islands (41.1%), Palm Jumeirah (40.5%), Emirates Hills and Meadows, each accounting for 27.5%, and Mudon (8.1%). Freehold villas in Dubai are, on average, valued at 180% above pre-pandemic levels.
Apartment prices rose by 1.1% month-on-month, recording an annual growth of 19.1%. The highest annual gains were recorded in The Greens (24.4%), Dubai Silicon Oasis (23.4%), Dubailand (23.3%), Palm Jumeirah (22.9%), Town Square (22.4%), International City (11.2%), and Business Bay (15.8%). Apartment valuations in Dubai are, on average, 73% higher than post-pandemic levels.
June saw 40 ready property deals worth over AED 30 million, including 15 deals worth over AED 50 million. These properties are located in the Dubai International Financial Centre, Palm Jumeirah, Arabian Ranches, Jumeirah Golf Estate, Dubai Hills Estate, Jumeirah Park, Al Barari, and Downtown Dubai.
Top developers and sites
June 2025 saw Emaar lead off-plan developer sales with a share of 13.9%, followed by Damac (13.3%), Sobha (8.9%), Binghatti (4.3%), Nakheel (3.5%), Danube (3.4%), and Samana (2.4%).
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - June 2025
