Dubai’s Real Estate Sector sees 26.5% price surge in February 2025

Dubai’s real estate market maintained its status as a leading investment hub in February 2025, with significant annual increases in residential unit, villa, and apartment prices. According to the latest report from ValuStrat, the Price Index recorded its slowest capital growth in 20 months, with villas seeing a 2% monthly increase (down from a peak of 2.7%) and apartments rising by 1.2%, a dip from January’s 2% growth.

Despite the slower pace of growth, the ValuStrat Price Index reached 207.5 points, marking a 1.6% monthly rise and a 26.5% year-on-year increase. Villa values hit 269.6 points, while apartments reached 167 points, all measured against a base of 100 points set in January 2021.

Villa Prices Surge by 30.8% Year-on-Year

The ValuStrat report highlights that villa values across Dubai's real estate market increased by 2% monthly and 30.8% annually. The strongest annual performers included villas in Jumeirah Islands (up 42.3%), Emirates Hills (31.2%), and The Meadows (29.9%).

However, Mudon saw the lowest growth at 10.5%, remaining stable for the sixth consecutive month. On average, Dubai’s freehold villas are now valued 57% higher than their previous market peak and 160% above post-pandemic levels.

Apartment Prices Rise by 22.2% Annually

Apartment prices in Dubai rose 1.2% month-on-month, slightly lower than January’s 1.4%, while annual growth stood at 22.2%. The strongest capital gains were recorded in The Greens (28.9%), Palm Jumeirah (26.3%), Dubailand Residence Complex (25.7%), The Views (25.4%), and Town Square (25.1%).

In contrast, the lowest increases in apartment values were seen in International City (15.4%) and Dubai Sports City (17.9%). On average, apartment prices are still 9% below the previous market peak but 65% higher than post-pandemic levels.

Off-Plan Property Registrations Surge

February saw a significant increase in off-plan property demand, with Oqood (contract) registrations growing 22.2% monthly and 59.5% annually, accounting for 70.8% of all home sales in the month. The volume of secondary home transactions also grew, rising 12.8% monthly and 9.8% annually.

Dubai recorded 31 transactions for ready properties valued over AED 30 million last month, including properties in prime locations such as Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One, and Jumeirah Golf Estates.

Notably, Jumeirah Village Circle, The Valley, Damac Island City, Emaar South, and Dubailand Residence Complex emerged as top off-plan locations in February. Dubai Silicon Oasis set a new record for the highest number of off-plan homes traded in a single month, while Emirates Hills broke its record for the highest number of ready homes traded.

Property Sales Reach $13.91 Billion in February

The continuous rise in property prices is driven by increasing demand from both local and international buyers. Property sales in February totaled $13.91 billion, a remarkable 39.91% increase compared to the same month last year.

A recent report from fäm Properties reveals that the total number of transactions reached 16,099, marking a 35.5% year-on-year increase and making it one of the best months on record. Over the past five years, Dubai’s real estate market has seen an astonishing 449% increase in sales value, growing from AED 9.3 billion in 2020 to AED 36.5 billion in 2024.