Dubai’s freehold villas are valued at 180 per cent above post-pandemic levels and apartment valuations are 73 per cent higher since the pandemic as the emirate's property sector continues to boom despite a monthly slowdown in transactions, a new report has found.
Villa capital values grew 1.9 per cent monthly in June, with an annual gain of 28.7 per cent, real estate consultancy ValuStrat said in its latest report.
The strongest annual performers included villas in Jumeirah Islands (41.1 per cent), Palm Jumeirah (40.5 per cent), Emirates Hills and The Meadows, both at 27.5 per cent. The lowest annual gains were recorded for villas in Mudon at 8.1 per cent.
Apartment prices rose by 1.1 per cent monthly in June, recording an annual growth of 19.1 per cent, ValuStrat said. The highest yearly capital gains were seen in The Greens (24.4 per cent), Dubai Silicon Oasis (23.4 per cent), Dubailand Residence Complex (23.3 per cent), Palm Jumeirah (22.9 per cent) and Town Square (22.4 per cent), the report found.
In contrast, the lowest capital value increases were recorded in International City (11.2 per cent) and Business Bay (15.8 per cent).
“The market is showing signs of maturity, though momentum may slow through the second half of 2025,” said Haider Tuaima, managing director and group head of real estate research at ValuStrat.
“While several slowdowns in sales were observed over the past 12 months, June recorded fewer transactions than May. However, both off-plan and ready sales posted positive growth on an annual and quarterly basis. One factor contributing to the decline in ready sales is the growing number of end-users purchasing homes, which reduces the available resale inventory.”
Oqood registrations for off-plan homes declined 8 per cent monthly in June, but were 60.1 per cent higher annually, accounting for 73.4 per cent of total residential sales, the ValuStrat report showed.
Meanwhile, ready secondary-home transactions dropped 14.3 per cent since May, but were 11 per cent higher on an annual basis.
The real estate market in Dubai is set to enter a "moderate correction” in the second half of 2025 because of a record number of project launches, Fitch Ratings said in a report in May.
The correction – a phase in which price of an asset declines by 10 per cent or more – would run through 2026, but is not expected to exceed 15 per cent, as the strength of the prime real estate segment will support the rest of the market, the New York-based ratings agency said.
Real estate prices in the emirate, the commercial and financial hub of the Middle East, have leapt by about 60 per cent from 2022 to the first quarter of 2025, Fitch data showed.
The market has maintained a robust momentum after bouncing back from the Covid-driven slowdown and its world-beating run was supported by government measures, including multiple visa options for investors and policy measures that boosted ease of doing business in the emirate.
Top off-plan locations transacted included projects in Jumeirah Village Circle, Dubai Investment Park Second, Uptown Motorcity, Damac Island City and Business Bay. Both Dubai Silicon Oasis and Uptown Motorcity broke their individual records with the highest number of off-plan homes traded in one month, the ValuStrat research found.
The majority of ready home sales were concentrated in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai and DIFC, the consultancy said.
Record sales of $10m-plus homes
While the broader market is showing signs of weakness, the ultra-prime segment remains robust as sales of $10 million-plus homes in Dubai hit a record high of $2.6 billion in the second quarter of 2025, according to a new report by property consultancy Knight Frank.
This was 37 per cent ahead of the $1.9 billion recorded in the first quarter and a 63 per cent uplift on the same period last year.
The total number of $10 million-plus sales during the second quarter hit 143, including 22 transactions for more than $25 million. Apartments outpaced villas in the $10 million+ segment, with 80 apartment sales, compared to 63 villas.
Knight Frank identified Palm Jumeirah as the leading location for $10 million-plus sales, with 28 properties changing hands, while La Mer (23) and Downtown Dubai (16) rounded off the top three busiest $10 million-plus markets in the city.
“The record sales in the luxury price bracket highlight the sustained and rising demand among global and domestic high-net-worth individuals for homes in the emirate,” said Faisal Durrani, partner – head of research, Mena at Knight Frank.
“The total value of all homes sold in Dubai has increased by 282 per cent since 2020, and in 2024 it was once again the world’s busiest market for $10 million-plus homes, recording 435 sales in this price bracket and almost equalling the number of $10 million-plus home sales in London and New York combined.
“Dubai’s residential market continues to mature, as evidenced by the rise in the number of genuine end-users and the decline in the number of homes being sold within 12 months of purchase from around 25 per cent in 2008 to between 4 per cent and 5 per cent today.”
There is also a rising number of “property millionaires” across Dubai, according to the Knight Frank research.
At the start of the second quarter, there were 110,000 residential units valued above $1 million. About 37,000 are owned by “accidental millionaires” – purchasers who bought properties for less than $1 million that are now worth more, solely due to price inflation, the study found.
“The number of accidental millionaires in Dubai has increased by an average of 79.5 per cent over the past three years,” Shehzad Jamal, partner – strategy and consultancy, Mena at Knight Frank, said.
Palm Jumeirah has Dubai’s highest concentration of $1 million-plus homes – 9,071 as at the start of the second quarter, followed by Downtown (8,376) and Dubai Hills Estate (6,138).
However, while the city welcomed almost 170,000 new residents last year, the total housing stock only rose by a little over 30,000 units, the study revealed.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
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Cases of coronavirus in the GCC as of March 15
Saudi Arabia – 103 infected, 0 dead, 1 recovered
UAE – 86 infected, 0 dead, 23 recovered
Bahrain – 210 infected, 0 dead, 44 recovered
Kuwait – 104 infected, 0 dead, 5 recovered
Qatar – 337 infected, 0 dead, 4 recovered
Oman – 19 infected, 0 dead, 9 recovered
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Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Under 19 World Cup
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
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- Tom Ince (winger): signed from Derby County for £7.7m
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Find the right policy for you
Don’t wait until the week you fly to sign up for insurance – get it when you book your trip. Insurance covers you for cancellation and anything else that can go wrong before you leave.
Some insurers, such as World Nomads, allow you to book once you are travelling – but, as Mr Mohammed found out, pre-existing medical conditions are not covered.
Check your credit card before booking insurance to see if you have any travel insurance as a benefit – most UAE banks, such as Emirates NBD, First Abu Dhabi Bank and Abu Dhabi Islamic Bank, have cards that throw in insurance as part of their package. But read the fine print – they may only cover emergencies while you’re travelling, not cancellation before a trip.
Pre-existing medical conditions such as a heart condition, diabetes, epilepsy and even asthma may not be included as standard. Again, check the terms, exclusions and limitations of any insurance carefully.
If you want trip cancellation or curtailment, baggage loss or delay covered, you may need a higher-grade plan, says Ambareen Musa of Souqalmal.com. Decide how much coverage you need for emergency medical expenses or personal liability. Premium insurance packages give up to $1 million (Dh3.7m) in each category, Ms Musa adds.
Don’t wait for days to call your insurer if you need to make a claim. You may be required to notify them within 72 hours. Gather together all receipts, emails and reports to prove that you paid for something, that you didn’t use it and that you did not get reimbursed.
Finally, consider optional extras you may need, says Sarah Pickford of Travel Counsellors, such as a winter sports holiday. Also ensure all individuals can travel independently on that cover, she adds. And remember: “Cheap isn’t necessarily best.”
