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Dubai's Residential Market Breaks Records in H1 2025

The residential property market in Dubai has shown extraordinary resilience, achieving remarkable growth in the first half of 2025. According to the latest report by Betterhomes titled "Shaping Skylines Q2 2025 Dubai Residential Real Estate Market Report," the total residential sales in the region reached an astonishing AED 151.8 billion. This represents a significant year-on-year increase of 46% in value and a 25% rise in transaction volumes, amounting to 50,485 units sold.

Dubai's Allure Unveiled

These impressive numbers highlight Dubai's status as a prominent and dynamic real estate destination on the global stage. The continued demand for properties in the emirate can be attributed to a growing population seeking homes in Dubai, investor-friendly regulations, and an extensive development pipeline that promises exciting new projects.

Momentum Across All Segments

Sales figures compared to the previous quarter demonstrate notable momentum, with values increasing by 33% and volumes by 19%. The prime residential sector shines particularly bright; it has set new benchmarks with 1,417 luxury transactions in Q2 alone. This marks a staggering 67% increase from the previous quarter and an impressive 113% increase year-on-year. These trends illustrate the soaring global interest in luxury off-plan properties in Dubai, especially among ultra-high-net-worth individuals.

Christopher Cina, the Director of Sales at Betterhomes, expressed optimism, stating, "Q3 is shaping up to be an exciting phase for Dubai's property market. With around 20,000 new units already delivered and another 70,000 expected by year-end, the city is well-prepared to accommodate the rising demands from both investors and end-users."

Supply and Pricing Dynamics

In H1 2025, Dubai welcomed over 20,000 new units into the market, with notable completion contributions from Jumeirah Village Circle (20%), Sobha Hartland (11%), and Mohammed Bin Rashid City (8%). Looking into the future, projections indicate that over 200,000 new units will become available by 2027, underscoring the confidence developers have in Dubai's enduring growth trajectory.

Despite the influx of new properties, average property prices have kept rising, now standing at AED 1,582 per square foot. This figure marks a 6% increase from H2 2024 and a 3% uptick from Q1 2025. Compared to last year, the prices have climbed 18% and are an astounding 90% higher than the pandemic-era low of AED 833 per square foot.

Increasing Investor Activity

The report also highlights a noticeable upswing in investor engagement within the market. In Q2, investors accounted for 58% of all transactions, a significant jump from 50% in the previous quarter. End-user activity, on the other hand, saw a slight decline to 42%, as purchasers primarily sought out properties for rental income and capital growth in a competitive market.

An interesting trend is the dominance of cash transactions, which comprised 52% of all dealings in Q2, increasing from 42% in Q1. This shift indicates a more fluid buyer market, largely driven by high-net-worth individuals and international investors looking for quick closure on deals.

Shifting Global Buyer Demographics

In terms of nationalities purchasing property, the UK has now taken the lead over India, showcasing a 56% surge in transactions during Q2. India and Pakistan follow suit in second and third place, respectfully, with Poland making waves by entering the top five for the first time. Interestingly, Russia did not make the top 10 for the first time, while Ireland secured the sixth spot.

As Dubai continues to captivate international buyers, the city's property sector remains a beacon of attractiveness and resilience, solidifying its position as one of the world's foremost investment destinations. The report's findings not only reflect the city's unwavering growth but also underscore its appeal in the global property market. Investors and potential buyers can look forward to an exhilarating phase in one of the most dynamic markets worldwide.