Dubai - Real Estate Review Q2 2025

The Dubai real estate market achieved record transaction milestones in the second quarter of 2025, even as capital value growth displayed signs of deceleration amidst growing affordability pressures. This edition of the ValuStrat Price Index (VPI) highlights a resilient yet maturing cycle, underscored by unprecedented off-plan absorption and sustained secondary market momentum.

• Property sales reached record highs during the quarter, reflecting continued structural demand and investor confidence.
• The off-plan sector marked a significant milestone with nearly 37,000 transactions recorded.
• Capital allocation towards premium developments persisted, with off-plan units averaging over AED 3.1 million per transaction.
• Ready home sales demonstrated robust liquidity, posting a 10.4% quarterly increase driven by strong activity early in the quarter.
• Overall price growth exhibited a measured deceleration, indicating a transition towards a more sustainable market phase.

Institutional investors and family offices requiring a valuation-anchored baseline to navigate moderating capital growth and identify counter-cyclical opportunities.

Lenders and risk management teams seeking independent, evidence-based metrics to accurately underwrite real estate exposure amidst shifting affordability metrics.

Real estate developers requiring clear visibility into record-breaking off-plan absorption rates and average ticket sizes to strategically time and price upcoming project launches.

High-net-worth individuals (HNWIs) and active market participants seeking to validate pricing, entry, and exit strategies within transitioning prime villa and apartment segments.

Policymakers and government entities focused on monitoring sustainable price growth, housing affordability, and long-term residential sector resilience.

This comprehensive index equips decision-makers with the empirical clarity required to navigate Dubai's maturing property cycle in Q2 2025.

• Benchmark individual residential and commercial assets against authoritative, citywide capital value trajectories to optimise portfolio performance.
• Understand the precise valuation dynamics between unprecedented off-plan momentum and resilient ready home liquidity.
• Support complex pricing, acquisition, disposal, and lending decisions backed by an independent, evidence-led valuation framework.
• Track shifting market fundamentals through a detailed analysis of residential transaction volumes, average ticket sizes, and moderating growth trends.