Dubai's 2025 Real Estate Boom: Prices Soar

Dubai's real estate market continues to show unbroken growth, both in sales and rentals. In July, the average square foot price reached 1,893 dirhams, marking a 3.3% monthly increase. This price not only reflects continuous demand but also the arrival of increasingly diversified buyers and renters.

Sales Market: Record Transactions and Rising Prices

According to a recent report by Betterhomes, there were 18,816 residential property transactions in July, a 20.5% increase compared to the previous month. The total value of transactions was 51.3 billion dirhams, a 10.6% rise from June.

65% of purchases were still linked to off-plan – or under-construction – projects. This type of investment is particularly attractive to those seeking long-term returns or who want to invest in a project where competitive prices are still achievable.

The most successful villa communities in terms of transaction numbers:

The Wilds, Grand Polo Club & Resort, The Oasis

In the apartment market, Jumeirah Village Circle, Business Bay, and Damac Riverside led the statistics. The average selling prices were as follows:

Apartment: 1.99 million dirhams

Townhouse: 3.25 million dirhams

Villa: 9.7 million dirhams

Interestingly, in the Betterhomes-managed portfolio, the average price of apartments rose to 2.33 million dirhams, while for villas, it was only 6.1 million dirhams, which is a significant deviation from the average calculated by Dubai Land Department. This difference may result from varying buyer preferences and property types.

Regarding the source of purchases, 52% of transactions relied on mortgages, while 48% were cash payments. The dominance of investors is also evident: 62% of buyers were investors, while 38% bought for personal use.

Rental Market: Arrival of New Residents

The rental segment also strengthened in July, with 39,251 rental transactions registered, a 3.4% increase compared to the previous month. Particularly noteworthy is that the ratio of new contracts reached 40%, indicating that many new tenants are arriving in the city – be it newly arrived workers or newly settled families.

The communities producing the most significant monthly rental increases were:

Al Khail Heights (apartment): +1.5%, annual average rent 67,500 dirhams

Jumeirah (villa): +4.2%, annual average rent 498,000 dirhams

Across Dubai, the average rents were as follows:

Apartment: 72,000 dirhams/year

Townhouse: 172,000 dirhams/year

Villa: 255,000 dirhams/year

In Betterhomes' own portfolio, slightly higher average rents were experienced:

Apartment: 141,000 dirhams

Townhouse: 190,000 dirhams

Villa: 368,000 dirhams

The most active communities in the villa rental segment:

Mirdif, Damac Hills 2, Jumeirah

For apartments, the highest activity was in the following districts:

Jumeirah Village Circle, Dubai Silicon Oasis, Business Bay

The Market Momentum Remains Unbroken

According to the report, the number of interested parties also increased: buyer leads rose by 4% and tenant leads by 10% in July. This clearly shows that Dubai’s real estate market remains an attractive destination for investors and residents not only locally but globally as well.

The continuously rising sales numbers, the outstanding demand for off-plan projects, and the stable growth of the rental market together paint a market dynamic that clearly projects a positive future outlook.

According to Betterhomes' analysis, further growth is to be expected in the coming months. Investor confidence is strong, and the city's infrastructure and economic stability can sustain this pace in the long term. The continuous expansion of supply and the development of community services also contribute to Dubai remaining one of the world's most sought-after residential property markets.

Summary

Dubai's residential real estate market is in robust momentum in the summer of 2025. The average price per square foot is nearing 1,900 dirhams, while the demand for off-plan projects and the emergence of new tenants are setting new records. The market shows healthy and sustainable growth, where the interest of foreign investors, the local population demand, and the city's continuous development are present simultaneously. Therefore, Dubai remains an attractive destination for those seeking entry into a stable and dynamically evolving real estate market.

(The article is based on market data from real estate consultants.)