Dubai Real Estate Shatters Records with Over 51,000 Q2 Property Sales Valued at $72.8 Billion
The Dubai real estate market has posted its strongest quarter on record, with residential sales exceeding 51,000 transactions in Q2 2025 and total sales value reaching an unprecedented AED 268 billion ($72.8 billion), according to Knight Frank’s Dubai Residential Market Review Q2 2025.
Off-Plan Sales Dominate Market Activity
The surge was driven primarily by off-plan property sales, which made up nearly 70% of total transactions. This reflects increasing investor confidence and sustained demand for new developments in prime Dubai locations such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate.
Residential Market on Track for Record-Breaking Year
Total home sales for the first half of 2025 reached 94,000, positioning the market to surpass the 169,000 deals recorded in 2024. The citywide average price per square foot rose to AED 1,809, a 3.4% quarterly increase and now 21.6% higher than the previous 2014 market peak.
Villa Segment Leads Price Growth
Villa prices experienced the highest appreciation, rising 16% year-on-year and 4% from the previous quarter, reaching AED 2,172 per square foot. According to Knight Frank, this trend is expected to continue, as only 20% of planned housing supply through 2029 will be villa units—further tightening inventory for standalone homes.
Record-Breaking $10M+ Property Sales
Dubai’s ultra-prime property segment also saw remarkable performance, with AED 9.5 billion worth of $10 million+ homes sold in Q2—the highest quarterly total on record. Notably, for the first time since Q2 2023, apartments outperformed villas in this category, with 80 apartment sales versus 63 villas.
A Maturing, End-User Driven Market
The market is increasingly being defined by end-users rather than speculators, with resale activity within 12 months now at just 4–5%, a sharp contrast to the 25% rate seen in 2008. This signals a more sustainable and mature real estate environment, says Will McKintosh, Regional Partner at Knight Frank.
Sustained Growth Since 2020
“Since the start of the current cycle in November 2020, residential prices have been climbing consistently,” said Faisal Durrani, Head of Research, MENA at Knight Frank. “This five-year trajectory is creating the market stability and predictability that global investors actively seek.”
Knight Frank projects 8% price growth in the mainstream segment and 5% in prime areas for the remainder of 2025, supported by resilient demand and a diversified buyer base.
The Rise of Accidental Millionaires
Knight Frank’s Destination Dubai 2025 report identifies a growing number of “accidental millionaires” — homeowners whose properties have appreciated beyond the $1 million mark due to rapid price inflation. As of Q2 2025, Dubai has 110,000 such homes, with 37,000 owned by buyers who originally paid less than $1 million.
Source: Arabian Business
