Dubai Housing Sales Surge: Record Set, Future Prospects?

Dubai's property market achieved a record-breaking second quarter in 2025, with over 51,000 residential sales, a first for the city. This surge, fueled by end-users, saw nearly 94,000 homes sold in the first half of the year, generating Dh268 billion, a 41% increase compared to 2024. The "first home" initiative, launched earlier in the month, is expected to further boost demand, particularly among younger buyers and new residents.

Luxury properties also experienced significant growth. Sales of homes valued at $10 million and above reached an all-time high of Dh9.5 billion, with 143 deals closed in Q2-2025. Notably, for the first time since Q2-2023, apartments in this price range outsold villas. City-wide residential prices increased by 3.4% in Q2-2025, reaching Dh1,809 per square foot, a substantial 21.6% above the 2014 market peak.

The market's stability is evident in the sustained price growth, approaching five consecutive years since November 2020. Knight Frank forecasts an 8% growth in the mainstream market and 5% in the prime segment for 2025. Off-plan sales continue to dominate, accounting for 70% of home sales.

The shift towards genuine buyers rather than speculators is reshaping the market. Resale activity within 12 months of purchase is now at just 4%-5%, significantly down from 25% in 2008, indicating a more mature and sustainable market.