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Dubai Real Estate Market Hits New High of USD 89 Billion in H1 2025

Staff Writer
Staff Writer
Jul. 10, 2025
Dubai real estate hits USD 89 billion in H1 2025 as population growth, off-plan sales, and villa demand drive record-breaking market momentum.
The Greens community in Dubai.The Greens community in Dubai. (Image: Shutterstock)

DUBAI, UAE - 10 July 2025 - Dubai’s property sector achieved a record-breaking performance in the first half of 2025, with total real estate transactions reaching an impressive USD 89 billion. The surge was driven by a sharp rise in population, growing off-plan sales, and increasing capital values across residential segments.

Population Growth Outpaces Housing Supply

Nearly 90,000 new residents moved to Dubai in Q1 2025, while only 12,000 new homes were delivered in the first six months of the year. The resulting supply-demand gap has fueled strong market activity, propelling both sales and rental prices across key communities.

Off‑Plan Segment Fuels Market Momentum

More than two-thirds of residential property transactions in H1 2025 were in the off‑plan segment. Buyers flocked to developments in popular areas like Jumeirah Village Circle, Dubai South, and Emaar South, where flexible payment plans and attractive pricing continue to drive demand.

Luxury Villas Lead Value Growth

Luxury villa communities such as Palm Jumeirah, Jumeirah Islands, and Emirates Hills recorded the highest capital gains, while mid-market apartments in The Greens and Dubailand also performed strongly. The upward trend reflects both end-user and investor confidence in long-term market fundamentals.

Outlook for H2 2025

While some market softening is expected in the latter half of the year, Dubai’s real estate sector is poised to maintain positive momentum. Developers are now increasingly focused on scalable housing solutions to meet demand from both new residents and international investors.

The record-setting first half of 2025 underscores Dubai’s continued appeal as a global real estate hub. With property prices and rental yields on the rise, investors are capitalizing on early-stage developments in emerging communities. The market’s strong fundamentals suggest continued opportunities for growth, especially in off‑plan and villa segments.