Apartment prices in Dubai have risen almost a fifth this year, a report showed on Wednesday, as the emirate continues to attract real estate investors from around the world due to its safe haven appeal and attractive policies.

June 2025 saw the ValuStrat Price Index achieve 220.8 points, marking a 1.5 per cent monthly increase, down from 1.6 per cent in May, and a 23.9 per cent rise since June last year. Villa values climbed to 291.6 points, while apartments reached 174.7 points, all benchmarked to a base of 100 points in January 2021.

Capital growth continues at a slightly slower pace with more locations surpassing previous price peaks. Transaction volumes declined monthly, and ready sales account for less than 30 per cent of total activity.

Villa capital values grew 1.9 per cent monthly, down from 2 per cent in May, with an annual gain of 28.7 per cent. The strongest annual performers included villas in Jumeirah Islands (41.1 per cent), Palm Jumeirah (40.5 per cent), Emirates Hills and The Meadows both at 27.5 per cent. Meanwhile, the lowest annual gains were recorded in Mudon (8.1 per cent). Dubai’s freehold villas are, on average, valued at 180 per cent above post-pandemic levels.

Apartment prices rose by 1.1 per cent monthly, recording an annual growth of 19.1 per cent. The highest yearly capital gains were seen in The Greens (24.4 per cent), Dubai Silicon Oasis (23.4 per cent), Dubailand Residence Complex (23.3 per cent), Palm Jumeirah (22.9 per cent), and Town Square (22.4 per cent). In contrast, the lowest capital value increases were recorded in International City (11.2 per cent) and Business Bay (15.8 per cent). Apartment valuations in Dubai are, on average, 73 per cent higher than post-pandemic levels.

Off-plan vs ready homes

Oqood registrations for off-plan homes declined 8 per cent monthly but were 60.1 per cent higher annually, accounting for 73.4 per cent of total residential sales. Meanwhile, ready secondary-home transactions dropped 14.3 per cent since May, but were 11 per cent higher on an annual basis.

Prime home sales

There were 40 transactions for ready properties priced over Dh30 million, 15 of which were priced over Dh50 million. These properties were located in DIFC, Palm Jumeirah, Arabian Ranches, Jumeirah Golf Estates, Dubai Hills Estate, Jumeirah Park, Al Barari, and Downtown Dubai.

Top locations

Top off-plan locations transacted included projects in Jumeirah Village Circle (9.1 per cent), Dubai Investment Park Second (7.2 per cent), Uptown Motorcity (5.9 per cent), Damac Island City (5 per cent), and Business Bay (4.8 per cent). Both Dubai Silicon Oasis and Uptown Motorcity broke their individual records with the highest number of off-plan homes traded in one month.

Meanwhile, the majority of ready home sales were concentrated in Jumeirah Village Circle (9.2 per cent), Business Bay (5.5 per cent), Dubai Marina (4.9 per cent), Downtown Dubai (4 per cent), and DIFC (3.9 per cent).

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Source: Khaleej Times

11th July 2025