Dubai’s residential property market continued its upward trend in the first quarter of 2025, with citywide prices rising 3.7% to Dh1,749 per square foot, according to Knight Frank. This marks a 17.6% increase over the 2014 peak, reflecting continued strength in both off-plan sales and high-end villa demand.
Villa prices reached Dh2,088 per square foot in Q1, up 3.9% from the previous quarter and 43.5% above the 2014 high. Apartments also posted gains but trailed villa performance in growth rates.
Transaction volumes totalled Dh114.7 billion across 43,000 deals in the quarter. Off-plan sales accounted for 69% of transactions, continuing a trend that has dominated the market for several quarters. Despite an increase in mortgage activity, cash buyers accounted for 87% of purchases, underscoring the sector’s liquidity strength.
The prime residential market also saw expansion, with the number of communities meeting Knight Frank’s definition of “prime” rising from four to ten. To qualify, a community must have had more than 10% of its transaction value in deals above Dh10 million for at least three years. The Dubai Prime Index now stands at Dh3,846 per square foot, a 17.8% year-on-year increase.
Luxury sales remained active. In Q1 2025, there were 111 transactions above $10 million, up 5.7% from Q1 2024. While this is down from the Q4 2024 peak of 153 such deals, it represents the strongest Q1 on record for this segment.
Supply over the next five years is heavily weighted toward apartments, with 70,452 units due in 2025 and 133,041 in 2026. Villas will account for a smaller portion of the upcoming supply, with branded residences making up just 2% of expected completions through 2029.
Among top-performing communities, the Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate led in terms of price per square foot and annual growth. Jumeirah Golf Estates, Dubai Creek Harbour, and Business Bay also posted notable gains.
The latest performance solidifies Dubai’s position as one of the most active global residential markets,
