The latest Dubai 2nd quarter real estate review report from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics in Dubai’s real estate market. The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity.
Haider Tuaima, Managing Director and Head of Real Estate Research, shares his synopsis of Dubai’s real estate market. According to him, there is a deceleration in price growth and growing affordability pressures. The quarter marked a significant milestone with nearly 37,000 off-plan transactions, averaging over AED 3.1 million per unit.
Ready home sales also saw a 10.4% quarterly increase, driven by robust activity in April and May, reaching a record 13,700 title deed registrations, with an average price of AED 2.7 million.
The estimated number of new homes scheduled for delivery in 2025 has been revised to 66,596 units. The first half of the year saw approximately 17,500 homes completed, equivalent to less than a third of the annual forecast.
According to the ValuStrat Price Index (VPI), capital values in Dubai’s freehold residential market continued to grow, though at a slower pace compared to 2024. Apartment prices rose by 19.1% YoY, while villa prices increased by 28.7%. This marks a slowdown compared to the same period last year, when apartment prices had risen by 23.4% and villa prices by 33.4%. Rental growth also moderated, with villa rents up 4.8% and apartment rents up 7.2% annually.
Demand for office space remained strong, supported by sustained economic growth and business expansion. Office capital values grew 4.9% QoQ and 23.7% YoY, compared to 31.7% annual growth in 2024. In the industrial segment, logistics warehouses led performance, with 16.2% annual and 4.1% quarterly capital gains, underscoring continued strength in the sector.
He concludes that as supply ramps up in the second half of the year, close attention will be needed to monitor its impact on pricing dynamics. Nonetheless, the outlook remains positive across residential, office, and industrial sectors.
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About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 16 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q2 2025
