Dubai’s real estate market maintained strong momentum during the second quarter of 2025, driven by record transaction activity, sustained population growth, and continued demand across residential, office, hospitality, and industrial sectors. This comprehensive quarterly review provides decision-makers with a valuation-led assessment of market performance, investment trends, and supply dynamics shaping Dubai’s property landscape.
- Citywide residential capital values (VPI) climbed to 220.8 points, recording a 4.7% quarter-on-quarter increase and a 23.9% annual gain. Villa values rose 28.7% year-on-year, while apartment values advanced 19.1% annually, reflecting continued demand despite moderating growth rates.
- Dubai’s population expanded to 3.97 million residents by the end of the first half of 2025, with 141,560 new residents added during the first six months of the year, further reinforcing housing demand across the emirate.
- Residential supply remains a critical market focus. The estimated number of homes scheduled for delivery in 2025 was revised upward to 66,596 units, of which only 17,474 homes had been completed by mid-year, representing approximately 28% of the annual forecast.
- Residential sales activity reached unprecedented levels, with total transaction volume rising 19.8% quarterly to 50,162 transactions. Off-plan sales registered a record 35,735 transactions, while ready-home sales reached an all-time high of 13,691 transactions, highlighting strong investor and end-user demand.
- Residential rental values continued to trend upward, with the Residential Rental VPI reaching 200.3 points, increasing 1% quarterly and 6.2% annually. Average apartment asking rents rose 7.2% year-on-year, while villa rents increased 4.8% annually.
- The commercial office sector delivered another exceptional quarter, with the Office VPI reaching 262.9 points, reflecting 4.9% quarterly growth and 23.7% annual appreciation. Office asking rents increased by 27.8% year-on-year, reaching a median annual rent of AED 2,045 per sq m.
- Industrial logistics capital values advanced to 158.4 points, posting 4.1% quarterly growth and 16.2% annual gains, supported by strong occupier demand and limited availability of modern warehouse stock.
- The hospitality sector continued to benefit from robust tourism activity, recording an average hotel occupancy rate of 82.9%, while RevPAR increased 7.3% annually to AED 513 and ADR rose 5.1% to AED 620. International visitor arrivals reached 8.68 million during the first five months of 2025, up 6.9% year-on-year.
