Dubai Apartment Prices Surge Nearly 20% This Year

Apartment prices in Dubai have surged nearly 20% in 2025, according to a report released on Wednesday, as the emirate continues to attract global real estate investors with its safe-haven reputation and investor-friendly policies.

In June 2025, the ValuStrat Price Index (VPI) reached 220.8 points, representing a 1.5% monthly increase, slightly down from 1.6% in May, and a 23.9% year-on-year rise. Villa values climbed to 291.6 points, while apartment values hit 174.7 points, all indexed to a base of 100 points set in January 2021.

Capital appreciation remains strong, albeit at a gradually slowing pace, as more locations surpass previous market peaks. Despite the price growth, transaction volumes declined, with ready property sales accounting for less than 30% of total residential activity.

Villas Lead in Growth

Villa capital values rose 1.9% month-on-month, slightly below May’s 2%, posting an impressive 28.7% annual increase. The highest year-on-year growth was recorded in:

Jumeirah Islands: +41.1%

Palm Jumeirah: +40.5%

Emirates Hills and The Meadows: +27.5% each

In contrast, Mudon saw the slowest annual villa price growth at 8.1%. On average, Dubai’s freehold villas are valued 180% higher than post-pandemic levels.

Apartment Values Continue Climb

Apartment prices rose 1.1% in June, bringing the annual growth to 19.1%. The strongest annual gains were observed in:

The Greens: +24.4%

Dubai Silicon Oasis: +23.4%

Dubailand Residence Complex: +23.3%

Palm Jumeirah: +22.9%

Town Square: +22.4%

Areas with the lowest annual apartment growth included International City (11.2%) and Business Bay (15.8%). Overall, apartment values are now 73% higher than post-pandemic levels.

Off-Plan vs Ready Homes

Oqood registrations for off-plan properties fell 8% month-on-month, yet were 60.1% higher year-on-year, making up 73.4% of total residential sales. In contrast, ready home transactions declined 14.3% since May, though remained 11% higher compared to June 2024.

There were 40 transactions for ready properties priced over AED 30 million, including 15 sales exceeding AED 50 million. These high-value properties were located in DIFC, Palm Jumeirah, Arabian Ranches, Jumeirah Golf Estates, Dubai Hills Estate, Jumeirah Park, Al Barari, and Downtown Dubai.

Top Areas for Transactions

Leading off-plan sales locations included:

Jumeirah Village Circle: 9.1%

Dubai Investment Park Second: 7.2%

Uptown Motor City: 5.9%

Damac Island City: 5%

Business Bay: 4.8%

Dubai Silicon Oasis and Uptown Motor City both recorded their highest-ever monthly off-plan transaction volumes.

Ready home transactions were primarily concentrated in:

Jumeirah Village Circle: 9.2%

Business Bay: 5.5%

Dubai Marina: 4.9%

Downtown Dubai: 4%

DIFC: 3.9%