Dubai Real Estate H1 2025 Insights

Dubai Real Estate Market H1 2025: Resilience Meets Opportunity

Dubai’s real estate market entered 2025 with strong momentum, underscoring its position as one of the world’s most dynamic and resilient property hubs. Despite ongoing global economic uncertainty, the emirate has leveraged solid macroeconomic fundamentals, steady capital inflows, and investor confidence to post another half-year of robust growth.

Economic & Tourism Foundations

The UAE economy is on course for 4.9% GDP growth in 2025, supported by diversified expansion and sound fiscal management. Dubai’s sovereign CDS spread tightened to 59 bps in Q1, signaling global investor confidence and stable financing conditions. Tourism, a cornerstone of Dubai’s growth model, attracted 7.15 million overnight visitors from January to April 2025 — up 7% year-on-year — while maintaining an 83% hotel occupancy rate. This surge in visitor activity continues to stimulate housing demand, both in short-term rentals and longer-term residency.

Transaction Landscape

In H1 2025, Dubai recorded 98,990 property transactions worth a substantial AED 329 billion, reaffirming its liquidity and global investor appeal. Off-plan sales remained the growth driver at AED 194 billion, while the ready segment accounted for AED 135 billion, balancing immediate supply with pipeline momentum.

• Residential Sector: 94,820 deals totaling AED 269 billion, reflecting the market’s depth and ongoing buyer appetite.
• Commercial Segment: Though smaller in scale, continued activity supports broader economic diversification.

Apartments: Consistent Market Leader

Apartments sustained their position as the most active asset class:

• 49,000+ off-plan transactions worth AED 101 billion
• Off-plan average: AED 1,995 per sq ft
• Ready apartment average: AED 1,590 per sq ft
• Demand hubs: Jumeirah Village Circle and Business Bay, representing both mid-market vibrancy and central location appeal.

Villas: Premium Enduring Appeal

The villa market showcased healthy demand across segments, from luxury beachfront to suburban communities:

• 15,845 off-plan sales totaling AED 89.7 billion
• Off-plan average: AED 1,352 per sq ft
• Ready villa average: AED 1,722 per sq ft
• Ultra-prime communities: Jumeirah Bay Island and Jumeirah Second, underscoring strong appetite for exclusivity and finished high-end stock.

Rental Yields: Stability with Growth Potential

Rental yields reflected stability in the first half of 2025:

• Apartments: 7.4% in Q1, easing to 7.2% mid-year
• Villas: 5.3% in January, moderating to 4.9% by June

This softening signals steady capital appreciation alongside sustained occupancy, a balance that continues to attract both income-driven and long-term investors.

Reliant Surveyors’ Insight

H1 2025 highlights a market that is resilient, liquid, and globally competitive. Off-plan projects continue to energize volumes, while ready properties — particularly in the villa segment — attract buyers seeking stability and premium lifestyle value. With robust fundamentals, competitive yields, and a pipeline of transformative developments, Dubai remains firmly positioned as one of the world’s most compelling real estate investment landscapes.