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Sales and rental prices up, but hints of moderation in leasing sector
300 project launches in H1 to bring 87,900 new units to Dubai
Dubai – Dubai’s residential property sector secured over AED262 billion worth of sales in H1 2025, up more than a third (36.4%) on the same period in 2024, according to new insight and analysis by leading real estate advisory and property consultant, Cavendish Maxwell.
Sales transactions also rose year-on-year, reaching 91,900 between January and June, an annual increase of 23%.
Cavendish Maxwell’s new Dubai Residential Market Performance Report also shows that in H1 2025:
- 17,200 new residential units were completed
- Nearly half of all handovers were in Jumeirah Village Circle, Sobha Hartland and Mohammed Bin Rashid City
- Sales prices rose nearly 17% year-on-year – and almost 8% compared to H2 2025
- Rental rates grew almost 10% compared to 2024 prices – but declined 0.6% against H2 last year
- 300 new projects, with 87,900 units, were launched
While more than 61,800 new units are currently being built, only one in five (21%) of projects scheduled for completion this year have reached 75% or more in terms of construction progress, suggesting potential delays in delivery, the report shows.
Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell, said: “The first six months of the year has highlighted a strong, thriving Dubai real estate market, with robust buyer demand and rising sales. At the same time, we are seeing early signs of moderation in rental price growth – good news for a city focused on attracting new talent and expanding its population. Looking ahead, we anticipate that the market will remain resilient, with new project launches and initiatives like the First-Time Buyer programme encouraging new investors to enter the market. With a steady flow of completions in the pipeline, Dubai’s property sector is poised to evolve into a more mature, balanced phase, creating new opportunities and greater accessibility.”
Sales volumes and values
Residential sales in H1 reached a value of AED262 billion across 91,900 transactions – up 23% year-on-year but down slightly compared to H2 2024, largely because of reduced off-plan activity caused by fewer launches and seasonal factors. While off-plan sales still dominate, accounting for more than 70% of transactions, Cavendish Maxwell’s report shows increasing demand for ready properties, which hit record highs between April and June this year, at 14,200 transactions, and a total of 27,400 deals for the whole of H1, representing 10% year-on-year growth. Off-plan transactions reached 64,500 in H1 – up almost 30% year-on-year but down 4% compared to H2 last year.
Off-plan v ready units
While off-plan apartments continue to dominate the sales market, demand for villas and townhouses is increasing. Apartments had a 76.7% off-plan market share in H1 this year, down 5.6% on the same period in 2024. Meanwhile, the off-plan share for villas and townhouses grew 5% year-on-year as investors opt for larger living space and a garden in master-planned communities. Affordable properties, combined with flexible payment schemes, are also driving villa and townhouse demand.
Apartments also dominate the ready properties sector, with a share of almost 82% in H1, up 1.2% on last year.
The most popular size for both off plan and ready apartments is a one-bedroom unit, accounting for 44% and 41% respectively, followed by two-beds (24.9% and 26.7%). Studios are gaining ground, with their share rising to nearly 25% in the off-plan sector.
In the villa and townhouse sector, four-bed homes dominate off-plan sales, taking 55% of all transactions and reflecting strong demand for family-sized accommodation. The market share for five- and six-bed properties has increased, further signalling a healthy appetite for larger homes. In the ready properties segment, three-and four-bed properties are most demand, but five-bed sales grew to a market share of almost 13%, mirroring the demand for larger homes seen in the off-plan market.
Top developers by volume
Emaar, DAMAC Properties and Sobha Group continued to dominate the residential market in H1, each retaining their positions in the top developer charts. Emaar’s performance was supported by strong sales at The Valley and Emaar South; DAMAC saw robust volumes at DAMAC Islands and DAMAC Hills 2, and Sobha Group enjoyed steady at Sobha Solis and Sobha Orbis. There were also solid performances by Binghatti and Danube Properties, while Beyond made its way into the top 10 for the first time, thanks to rising demand for its Dubai Maritime City developments. The complete top 10: Emaar, DAMAC, Sobha, Binghatti, Danube, Samana, Nakheel, Azizi, Beyond and Wasl.
Dubai’s most loved locations …
Jumeirah Village Circle topped the sales charts for both off-plan and ready apartments, with more than 8,000 transactions in total, followed by Business Bay with combined off-plan and ready sales reaching almost 5,000.
DAMAC Islands took the top spot for off-plan villa and townhouse sales, with over 3,860 deals secured, followed by Emaar’s The Valley, with more than 1,930 transactions. DAMAC Hills 2 leads the way on ready villa and townhouse sales, with 500 transactions, with Emirates Living in second place, with just under 360.
… And the lap of luxury
More than 1,400 luxury properties – those valued at AED20 million or more – were sold in H1 this year, an increase of more than 82% on the same period in 2024 and a 62% rise on H2 last year, reinforcing Dubai’s position as a magnet for HNWIs. Meanwhile the ultra-luxury sector, comprising properties worth AED50 million or above, also saw an uptick in performance, climbing by 33% compared to H1 and reaching 140 transactions.
The surge in luxury demand is supporting by Dubai’s attractive lifestyle and fiscal advantages: safety, political stability, a favourable tax environment, world-class amenities and investor-friendly visa programmes, and reinforces Dubai’s position as a premier destination for global wealth, Cavendish Maxwell said.
High transaction numbers = higher prices
Residential prices rose by 16.6% in H1 2025 compared to 12 months ago, reaching an average AED1,609 per square foot – the result of strong demand from local and international investors, and end-users. While double-digit price growth compared to H2 2024 was recorded in several areas including Discovery Gardens, Al Furjan, Dubai Marina, Motor City, Arabian Ranches 2 and Dubai Hills, there was a slight drop in other communities such as Barsha Heights, Meydan, Palm Jumeirah and DAMAC Hills.
Ronan Arthur added: “Dubai Land Department’s recently launched First-Time Home Buyer Programme will further boost the residential market, particularly among end-users, by making it easier to enter the market and encouraging home ownership. In time, the scheme could also help diversity the buyer base, promote long term residency and contribute to a more, balanced, inclusive housing market.”
Rental rates and yields
Rental prices rose almost 10% year-on-year but saw a drop of 0.6% compared to H2 2024. The slight decline is due to a reduction in renewal contracts as a result of more units coming to market, giving tenants more options and more negotiating power. However, renewed contracts still dominate the market: of the 244,000 rental contracts signed between January and June, almost 67% were renewals.
At the end of June this year, average gross rental yields in Dubai were 7.2% for apartments and 5% for villas and townhouses – a slight half-on-half decline. Nevertheless, yields are still strong – and continue to outperform many other global markets.
Dubai Investments Park was top for apartment rental yields, at 10.3%, followed by International City and Downtown Jebel Ali (both 8.8%), and Dubai Production City and Dubai Studio City in joint third place, at 8.4%. The top three locations for villa and townhouse rental yields were Dubai Industrial City at 7%, Jumeirah Village Circle (5.9%) and DAMAC Hills 2 (5.8%).
What’s new?
Around 300 new projects, with more than almost 88,000 units between them, were launched in H1 – amounting to an average of 490 homes each day. With an 86% market share, apartments account for the vast majority of new launches. Some 17,300 residential units were completed in H1, with over 40% of all handovers in Jumeirah Village Circle, Sobha Hartland and Mohammed Bin Rashid City. Apartments accounted for more than 77%.
Dubai has more than 61,800 units under construction for the rest of 2025, and more than 100,000 projected for delivery in 2026 and 2027.
Ronan Arthur added: “These projections suggest and average 9,000 units could be delivered every month through to 2027, but actual completion rates are expected to be lower, potentially leading to timeline shifts and delayed handovers. Currently, only 21% of projects scheduled for completion have reached 75% or more in construction progress, highlighting the possibility of a slippage in delivery timelines.”
For media enquiries, please contact: Rebecca Rees at rebecca@rebecomms.com +971 50 658 7192.
* All figures are approximate at the time of publishing.
About Cavendish Maxwell
Cavendish Maxwell is one of the Middle East’s leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City, Muscat and Riyadh. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
