Dubai Real Estate Sees AED 144.7 Billion in Q2 2025 as Off-Plan Surge Leads Boom
Dubai's real estate sector recorded a massive AED 147.6 billion in property transactions during the second quarter of 2025, making it one of the strongest quarters ever seen in the city's history. This figure, which converts to roughly $40.2 billion, reflects not only the scale of investor interest but also the confidence buyers continue to show in the city's long-term potential.
Across April to June, between 49,600 and 53,000 deals were completed. That's a sharp jump from the 43,864 transactions seen in Q1, pointing to a fast-moving market that's attracting both domestic and international buyers. Some variation exists across data sources, but most agree this quarter broke past records, with year-on-year volume growth nearing 82% and value increasing between 49% and 62% compared to Q2 last year.
A large share of the activity came from off-plan sales, which made up around 57% to 70% of all Q2 transactions. These deals alone generated between AED 114 billion and AED 115.5 billion. Developers are drawing buyers with smart payment plans, smaller upfront investments, and the potential for future returns.
- One-bedroom units were the top pick, followed by two-bedroom apartments.
- Most off-plan homes sold were in the AED 1M to AED 1.5M price range.
- Popular locations included Jumeirah Village Circle, Business Bay, and Dubai Production City.
New launches like BNW La Perla on Al Marjan Island are also contributing to this momentum. Set against the waterfront and offering a mix of 1, 2, and 3 BHK apartments, La Perla reflects Dubai's growing focus on premium living with investment flexibility.
While off-plan dominates, ready homes also saw a solid performance. Over 17,000 to 22,000 transactions took place in this segment, raking in about AED 71.7 billion. Buyers looking for immediate handover—whether for personal use or rental income—are driving this surge.
Jumeirah Village Circle, Business Bay, Dubai Marina, and Downtown Dubai remained the most active areas. The average property price now stands near AED 2.98 million, with price per square foot reaching AED 1,823—well above the market peak in 2014.
High-end buyers are also making big moves. Sales of homes priced above $10 million hit a record $2.6 billion in Q2. This included 143 properties—80 of them apartments, a trend that shows ultra-rich buyers are now choosing penthouses and branded residences over just villas.
Palm Jumeirah led this category, followed by La Mer and Downtown. Prime property values rose 25.7% in one year. Villas, in particular, saw a sharp 32.1% annual increase.
- Dubai's population continues to grow, with nearly 1,000 new residents arriving every day.
- The city remains a top choice for millionaires relocating from other parts of the world. An estimated 7,100 HNWIs are expected to move here in 2025.
- Investor-friendly policies like the 10-year Golden Visa and the newly launched "First Home" programme are helping more buyers enter the market.
- High rental yields in places like JVC (7.25%) and International City (8%) continue to attract buy-to-let investors.
- The tax-free environment and stable oil prices offer financial predictability, while infrastructure upgrades like the Metro Blue Line make living here more convenient than ever.
Analysts remain upbeat about the second half of the year. While some predict an 8% rise in mainstream home prices and a 5% rise in prime properties, others expect gains to hit double digits. A large number of homes—over 66,000—are scheduled to be delivered this year, though fewer than 18,000 were completed in the first half. That means a busy second half lies ahead.
Still, with a more mature and informed buyer base, fewer speculative "buy-and-flip" deals and rising end-user activity, the market seems well-positioned for sustained growth rather than a bubble.
Dubai's Q2 2025 performance shows that the real estate sector is not just growing, it's maturing. From tokenized properties to premium off-plan launches like BNW La Perla, the market is responding to buyer needs with innovation, transparency and scale.
Whether you're a first-time buyer eyeing a home in the city or a global investor looking for strong returns, Dubai continues to make a compelling case.
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