In the second quarter of 2025, the Dubai real estate market set a new record with over 51,000 home sales. This was the first time quarterly sales in this category exceeded this mark. Data from the consulting company Knight Frank supports this claim. In the first half of 2025, total villa sales in the emirate amounted to AED 268 billion, 41% higher than in the same period of 2024.
Who is buying real estate in Dubai?
A significant portion of the transactions were purchases by end users — individuals who buy real estate to live in, not for resale. In July, the authorities launched the First Home initiative to support this trend. It is aimed at young buyers and residents of the emirate who are buying a home for the first time.
Demand for luxury real estate remains high
The luxury housing segment in Dubai continues to grow. In the second quarter alone, there were 143 transactions worth $10 million or more, 80 of which were for apartments and 63 of which were for villas. Total sales in this segment amounted to AED 9.5 billion, setting a new quarterly record.
According to Faisal Durrani, head of MENA research at Knight Frank, the steady rise in luxury home prices over the past five years shows the market's stability and maturity. The company forecasts 8% price growth in the mass segment and 5% in the premium segment in 2025.
Prices are rising, but the market is stabilizing
During the second quarter of 2025, the average price per square foot in Dubai was AED 1,809, which was 3.4% higher than the previous quarter. This figure is 21.6% higher than the 2014 peak. Growth is largely driven by expensive properties in luxury projects and exclusive locations, including Sheikh Zayed Road and Al Barari.
The off-plan segment (properties under construction) continues to dominate as well, accounting for around 70% of all transactions in recent months.
Long-term buyers are replacing speculators
According to Knight Frank, an increasing number of buyers are entering the market intending to live in the property they purchase rather than resell it. Currently, the resale rate within the first year of purchase is only 4–5%, compared to around 25% in 2008.
Analysts believe this trend indicates the market's maturation and long-term stability, which is particularly attractive to foreign investors focused on stability and capital preservation.