Second quarter off-plan apartment transactions in Dubai surged 43 per cent quarter-on-quarter, contributing significantly to a total sales value of Dh60.15 billion, a 37 per cent increase year-on-year, data showed on Tuesday.

According to Betterhomes’ Shaping Skylines, Dubai Residential Real Estate Q2 2025, the off-plan segment accounted for the majority of Dubai’s residential market activity, underpinned by strategic launches from top-tier developers and investor-friendly payment plans.

Among the top-performing communities for off-plan apartments in Q2 2025 were Jumeirah Village Circle (JVC), which led with 12.2 per cent of total off-plan transactions, followed by Business Bay at 6.4 per cent, Dubai Residence Complex at 5.3 per cent, while Motor City and Production City each contributed 5 per cent. Two-bedroom apartments were the highest contributors to off-plan transaction value making up 33 per cent, with one-bedroom apartments at 30 per cent and studios at 10 per cent. The average price per square foot for off-plan transactions stood at Dh2,023.

“The off-plan market continues to be one of Dubai’s biggest growth stories. Buyers are showing greater discernment, focusing on quality, developer reputation, and long-term rental yield potential. We’re seeing high absorption of newly launched projects, especially in well-connected, master-planned communities,” said Christopher Cina, Director of Sales at Betterhomes.

Off-plan Apartment trends and buyer preferences

In the off-plan segment, The Valley accounted for the largest share of transactions at 29.7 per cent, followed by Emaar South with 15.5 per cent, Athlon by Aldar at 8 per cent, and MBR City at 7.3 per cent. The total off-plan transaction value for villas and townhouses stood at Dh7.94 billion, with townhouses driving 75 per cent of this value and villas contributing the remaining 25 per cent. This trend reflects a preference among buyers for townhouses in new developments, although the broader end-user market continues to favour ready-to-move-in properties for permanent residence. In terms of unit size, four-bedroom homes accounted for 49 per cent of the total off-plan transaction value, followed by three-bedroom units at 23 per cent and fivebedroom units at 12 per cent. The average price per square foot was Dh1,318 for townhouses and Dh1,947 for villas.

Overall, Dubai’s real estate market maintained its momentum in Q2, with transactions up 25 per cent year-on-year and total value rising 46 per cent. Apartments and off-plan led activity, while the luxury segment hit record highs. Even during June’s regional unrest, the market remained resilient; reinforcing Dubai’s position as a safe, stable destination for capital and lifestyle buyers alike.

This strong quarterly performance builds on a robust first quarter, which recorded quarter-on-quarter growth of 33 per cent in value and 19 per cent in volume. The sustained momentum highlights growing investor confidence and the continued appeal of Dubai’s property sector.

Secondary market activity

In the secondary apartment market, JVC again emerged as the top performer, accounting for 11.2 per cent of transactions, followed by Business Bay at 7.5 per cent, Dubai Marina at 5.8 per cent, with Mohammed Bin Rashid (MBR) City and Downtown Dubai each holding  a 5 per cent share. Two-bedroom apartments were again the largest contributor to transaction value, representing 36 per cent, with one-bedroom apartments at 28 per cent and studios at 8 per cent. The average price per square foot for secondary apartments was Dh1,600.

This data highlights the ongoing strength and demand across Dubai s apartment market, with JVC and Business Bay remaining key focal points for both off-plan and secondary transactions. The growth in transaction value, particularly for two-bedroom apartments, indicates strong investor confidence and a stable market outlook moving into the second half of 2025.

“As we move into Q3, the fundamentals remain strong. Population growth is steady, infrastructure continues to expand, and while more supply is coming online, demand is still outpacing it in most areas. We expect to see more negotiation, more realistic pricing, and a little more competition, which, frankly, is no bad thing,” Louis Harding, CEO of Betterhomes, said.

“With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai’s property market. This upcoming supply is well-aligned with the city’s growing population and strong investor appetite. Demand remains robust particularly for apartments and ready villas with healthy absorption of new launches. Both Q3 and the second half of 2025 are expected to reflect positive market sentiment, supported by a resilient economy, sustained end-user demand, and attractive rental yields,” Cina said.

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Source: Khaleej Times 

31st July 2025