Dubai Real Estate Market Surges in Q2 with $42 Billion in Transactions

Dubai’s property market recorded another robust quarter, with sales transactions rising 44.5 percent year-on-year in the second quarter of 2025 to 153.7 billion dirhams ($41.85 billion), according to new figures from real estate advisory firm JLL. The performance underscores the resilience of the UAE’s real estate sector, where activity remains driven by the off-plan market and reinforced by strong project launches in both Dubai and Abu Dhabi.

The upturn reflects a broader Gulf-wide trend. Across the GCC, residential, commercial, and hospitality property values are climbing, supported by diversification strategies, government investments, and healthy investor appetite. Kuwait Financial Center (Markaz) recently projected that momentum will extend into the second half of the year as lower interest rates further bolster activity.

In Dubai, sales momentum was strong across both the off-plan and secondary markets. Off-plan deals — where units are purchased before completion, often at discounted rates — were the primary growth driver, contributing to a 22.8 percent annual rise in residential transactions. Secondary sales also posted a 17.1 percent increase, pointing to sustained demand.

JLL noted that while price growth is likely to moderate, the slowdown signals a healthier balance between supply and demand. “Dubai’s sales market is expected to maintain strong sales momentum despite anticipated price growth moderation,” the report said, adding that outdated inventory in less central locations would be most affected.

The emirate’s rental market also remained buoyant. Compared with last year, new contracts climbed 14.3 percent in the second quarter, while renewals grew 9.9 percent, with renewals making up nearly two-thirds of total agreements. Average apartment rents rose 7.2 percent annually, and villa rents increased 5.3 percent.

Sales prices also continued to rise, with apartments up 13.3 percent to an average of 1,769 dirhams per square foot and villas up 16 percent to 2,200 dirhams per square foot. JLL said decelerating rental growth suggested a gradual move toward equilibrium, easing pressure on tenants while signaling longer-term sustainability for investors.

Supply is expanding steadily. Dubai delivered 12,000 new residential units between April and June, bringing total housing stock to around 869,000 units. A further 22,000 are expected in the second half of 2025, concentrated in Dubailand, Jumeirah Village, and Mohammed Bin Rashid City, with apartments making up about 70 percent of the pipeline.

In Abu Dhabi, the capital’s property market also gained momentum. Average sales prices rose 12.1 percent year-on-year, while transaction volumes increased 9.1 percent. Secondary sales surged 32.6 percent, though off-plan properties remained dominant. Apartment and villa prices grew 14.4 percent and 11.1 percent respectively, while rents rose 13.9 percent and 4.7 percent.

The capital added 3,400 residential units during the quarter, taking total stock to 292,000 units, with another 10,400 scheduled for delivery before year-end. JLL highlighted rising demand for branded residences in Abu Dhabi, which command higher price points and stronger long-term value retention.