Dubai Real Estate Market in 2025: Prices Surge, Developers Cautious

According to Property News, Dubai’s real estate prices surged by 25.9% in March 2025 year-on-year. Apartment values rose by 20.6%, while villa prices climbed 32%, though capital appreciation declined in some previously popular locations.

March 2025 Snapshot

The average price per square foot for apartments rose by 21.4% YoY and 1.2% MoM to AED 1,383 (approx. $4050 per sq.m).

Top-performing areas by annual growth:
- The Greens: +27.4%
- Dubailand Residence Complex: +25.5%
- Palm Jumeirah: +25.2%
- Town Square: +24.4%
- The Views: +24.3%

Lowest appreciation was seen in:
- International City: +14.9%
- Burj Khalifa area: +17.4%

On average, Dubai apartment prices are 67% higher than pre-pandemic levels, but still 8% below the last market peak. New launches outside Palm Jumeirah and The Greens, such as Jumeirah Beach Residence, are gaining popularity.

Primary vs. Secondary Market Activity

In March 2025:
- Off-plan sales dropped by 7.4% MoM but rose by 19.3% YoY
- 69.7% of all sales involved under-construction properties
- Ready home transactions declined by 2.4% MoM but rose by 1.1% YoY

Top developers by market share:
- Emaar: 15.2%
- Danube: 2.9%
- Others: Damac, Binghatti, Nakheel, Sobha

Luxury segment remained active with 23 ready homes sold above AED 30M in March. Notable areas include Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Al Barari, Dubai Marina, and Jumeirah Golf Estate.

Villa Prices and Hot Zones

Villa prices rose by 2% MoM and 30.3% YoY

Highest YoY increases:
- Jumeirah Islands: +42%
- Palm Jumeirah: +41.5%
- Emirates Hills: +30.5%
- The Meadows: +29.6%
- Mudon: only +9.3%, flat for 7 months

Average price per square foot: AED 1,769

Average price per sq.m: AED 19,040 ($5,186)

Villa prices are now 165% above pre-COVID levels and 60% higher than the last peak.

Q1 2025 Trends

According to ESPACE Real Estate:
- Total Q1 deals up 23% YoY to 42,274 transactions
- 10–17% apartment price growth in several areas
- Off-plan deals made up 59% of all transactions

Luxury segment over AED 20M saw record activity
- Emirates Hills: +101%
- Jumeirah Islands: +52%
- Rental contracts dropped YoY:
- Villas/townhouses: –8%
- Apartments: –17%

Rental prices still climbed:
- Villas: +19% average
- Emirates Hills: +33%
- Tilal Al Ghaf: +47%
- Apartments: +11% average
- City Walk led with +19%

Completions and Forecast

Only 7,008 housing units were completed in Q1 2025 — 15% less than the same period in 2024. Developers are cautious about overbuilding, fearing saturation.

The UAE real estate market is projected to reach $700 billion by end-2025, with a compound annual growth rate (CAGR) of 8% expected for the next four years — primarily from new construction.

Still, experts warn that investors should be extremely cautious. Hopes for continued growth may not materialize as supply grows and affordability concerns increase.