Dubai’s real estate market continued its upward trajectory in August 2025, marking another month of strong price growth, resilient demand, and unprecedented development activity. Despite a slight dip from July’s peak, August delivered the highest transaction volume ever recorded for the month, reinforcing Dubai’s standing as one of the world’s most active real estate markets.
Property Prices – Strong Growth in August
The Property Monitor Dynamic Price Index (DPI) recorded a 2.40% month-on-month increase, pushing the average price to AED 1,664 per sq ft. Current price levels now stand:
• 104.3% above the October 2020 trough
• 34.9% above the 2014 peak
• 16.28% higher year-on-year
This is the fifth consecutive month of price increases, driven by strong end-user demand and consistent off-plan absorption.
Transaction Activity – Slight Dip but Still Record-Breaking
A total of 18,655 sales were recorded in August, reflecting a 7.3% decline from July but still marking the strongest August on record.
Key highlights:
• 94.4% of all transactions were residential
• Commercial activity led by offices, vacant land, and hotel apartments
• Over 138,000 transactions recorded YTD, up 31.4% vs 2024
Dubai remains on track to surpass 205,000 transactions by year-end.
Off-Plan vs Resale – Off-Plan Dominates
Off-plan sales strengthened further with 13,116 Oqood transactions.
• True off-plan share: 75.7%
• Resale share: 25.5%
• Off-plan resales: 21.1%
Buyers continue favoring developer offerings with flexible payment plans and incentives, while resale units face increased pricing pressure.
New Project Launches – Supply Wave Continues
August saw 45 new project launches adding over 9,000 units worth AED 19.3B.
2025 year-to-date:
• 102,000+ new units launched
• 184 developers (up from 129 in 2024)
• Apartment launches: 92.9%
While established developers continue to see strong absorption, newer developers face slower uptake amid rising competition.
Mortgage Market – Near All-Time High
Mortgage activity reached 4,689 loans, the second-highest month ever recorded.
• 42.4% purchase mortgages
• Average loan size: AED 1.9M
• Average LTV: 73.9%
• Bulk mortgages increased 8.7%
Expected interest rate cuts later in 2025 may further boost financing activity.
Market Segmentation – Mid-Tier Leads Demand
Shifts in buyer preferences were clear in August:
• AED 750K–1M segment grew fastest (+2.2%)
• AED 1M–1.5M and AED 1.5M–2M segments increased steadily
• AED 5M–10M luxury tier fell (-3.5%)
Condensed:
• Mid-tier (AED 1M–3M): 56.9%
• Affordable (<AED 1M): 25.1%
• Premium (>AED 3M): 18.0%
Community Trends – Top Performers
Initial developer sales:
1. Business Bay – 1,307 sales
2. JVC – 1,128 sales
3. DAMAC Riverside – 840 sales
Resale hotspots:
• JVC – 9.7%
• Business Bay – 5.9%
• Dubai Marina – 3.9%
Market Outlook for H2 2025
While fundamentals remain strong, early signs of cooling are visible:
Headwinds:
• High supply levels testing absorption
• Increasing buyer selectivity
• Slower resale activity
• Mid-market affordability pressure
Tailwinds:
• Strong population and investor inflows
• Dubai’s stability and global appeal
• Expected interest rate cuts
• Strong mortgage demand
Dubai is expected to see continued but more volatile price growth through the remainder of 2025 as the market transitions into a more value-driven phase.
