Dubai’s real estate market continues to thrive in 2025. The phrase Dubai property prices rise clearly reflects this momentum. Property rates climbed to Dh1,582 per square foot in the first half. This marks a 3% increase from the previous quarter and a 6% rise compared to the second half of last year.
Moreover, developers delivered over 20,000 new units in this period. Another 70,000 are expected later this year. JVC, in particular, led completions with 20% of the total. Consequently, this growing supply aligns with the city’s increasing population and steady demand. Ready villas and apartments remain especially popular, and buyers are quickly taking up new launches. As a result, Dubai property prices rise in response to high absorption and limited delays.
In terms of value, total residential sales reached Dh151.8 billion. This figure shows a 46% increase year-on-year. Additionally, when compared to the previous quarter, sales grew 33% in value and 19% in volume. With 50,485 units sold, Dubai property prices rise as more people invest in the market. The broader Dubai housing market growth continues to attract global interest.
The prime market also showed strong growth. In Q2, 1,417 prime properties were sold. That’s a 67% jump from Q1. Even more impressively, this marks a 113% increase from the same period last year. Thus, demand for luxury real estate continues to soar, pushing real estate prices in Dubai higher each quarter.
Furthermore, the way buyers are financing their purchases has shifted. In Q2, cash transactions rose to 52%, up from 42% in Q1. At the same time, mortgage-backed deals fell to 48%. As a result, high-net-worth individuals and international investors now dominate the market. They prefer quicker closings and more liquidity. This dynamic is also contributing to how property rates in Dubai continue to climb.
Meanwhile, the UK surged ahead as the top buyer market. Its buyer activity jumped 56%, overtaking India. India and Pakistan still held second and third spots. Interestingly, Poland entered the top five for the first time. Russia, however, dropped out of the top 10 after many years, making room for Ireland in sixth place.
Investor participation also increased. In Q2, investors made up 58% of buyers, up from 50% in Q1. Conversely, end-user activity declined to 42%. Therefore, more buyers are focused on rental yields and long-term capital gains. Experts believe this trend will likely continue through the rest of the year, meaning Dubai property prices rise could remain a dominant market headline.
Overall, Dubai’s real estate sector remains resilient. With continued supply, strong policies, and solid demand, the future looks promising. Undoubtedly, Dubai property prices rise will stay relevant in upcoming quarters.
