Dubai Property Market 2025: Record Summer & Luxury Sales

Residential transaction activity “remains extraordinary” in the Middle Eastern wealth hub, says Mania Merrikhi, as prices continue to escalate, but “there are early signs of cooling on certain sub-markets”. 

It has been another record-setting summer in Dubai’s property market (writes Mania Merrikhi, Chief Operating Officer at Chestertons MENA). Average prices have marched past previous highs, with July’s index touching AED 1,625 per square foot, almost a third above the 2014 peak, following strong prints in April and June.

Transaction activity remains extraordinary, with more than 20,000 sales recorded in July alone, underpinned by a steady flow of launches that had already topped ninety-three thousand homes by mid-year. Off-plan continues to dominate, typically accounting for around seventy per cent of monthly sales, while the resale market holds the balance.

The tone on the ground is increasingly discerning. Buyers are comparing not just locations but product design, pricing and delivery timelines. Villas and townhouses are still the prize, particularly given how thin ready stock remains, with new phases at Palm Jebel Ali and Emaar’s Oasis development drawing intense interest. At the same time, the market has split along price points: trophy homes above AED 10m reached a record share in April, while the AED 1.0–1.5mn apartment bracket was the fastest-expanding segment in June. Sustainability is often cited in other global hubs, but here it is not yet a front-line driver of demand; lifestyle, amenity and long-term value remain the key motivators.

For those watching closely, certain neighbourhoods are setting the pace. Jumeirah Village Circle has been leading the off-plan tables month after month, with Business Bay and DAMAC’s new Riverside and Islands schemes also emerging as hot tickets. On the resale side, JVC again features, joined by Business Bay and the ever-liquid Dubai Marina.

Policy shifts have added a new wrinkle for buyers relying on finance. From February, banks can no longer roll the Dubai Land Department and agency fees into mortgages, nudging effective loan-to-value ratios lower and raising the cash hurdle at completion. While borrowing costs themselves have steadied with policy rates on hold, this technical adjustment has sharpened focus on upfront affordability.

At the top end of the market, the headlines have been unmissable. Palm Jebel Ali’s luxury villas, averaging close to AED 2,700 per square foot, helped drive record ultra- prime volumes earlier this year, and the Address Villas Tierra launch has further burnished Emaar’s Oasis. Among individual sales, the standouts include a Rosewood Residences penthouse changing hands for AED 250m in July, and a beachfront villa on Jumeirah Bay trading for AED 225mn in the spring.

Taken together, the picture is one of enduring momentum. There are early signs of cooling in certain apartment sub-markets, yet the fundamentals remain strong: exceptional population growth, deep global capital flows, and a supply pipeline that, while heavy, continues to find eager buyers. With villas scarce, apartments plentiful, and the luxury end setting new records, Dubai’s market entered the second half of 2025 in full stride.

Originally published on PrimeResi