Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
The Dubai housing market remained to exceed in 2Q2025, maintaining energy that has propelled residential or commercial property values in the emirate. According to research by Knight Frank, Dubai real estate prices expanded 3.4% q-o-q and 13.7% y-o-y to strike approximately AED1,809 psf ($ 629 psf) in 2Q2025, denoting a brand-new all-time high. Residential prices have now risen 21.6% over the past market height reported in 2014.
Knight Frank has maintained its forecast for Dubai real estate cost development in 2025 at 8% for the mainstream market and 5% for the prime section.
Over 94,000 households in Dubai have now been marketed ever since the beginning of the year, placing the market firmly on track to exceed the 169,000 deals recorded for the entire of 2024. Generally, complete residential sales value clocked in at AED268 billion in 1H2025, 41% greater y-o-y.
Within the Dubai property landscape, the villa segment has continued to lead the charge in cost development, exceeding condos. Villa prices rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the sector’s overall price increase since 2014 to 49.3%.
The increase in prices coincides with quarterly sales quantity striking a new log of 51,000 last quarter. Off-plan sales accounted for almost 70% of all transactions, that indicates growing financier assurance in brand-new Dubai property developments, claims Knight Frank. “The market is increasingly being shaped by real buyers as opposed to speculators, with resale activity within twelve month of acquisition now at just 4– 5%, compared to 25% in 2008,” includes Will McKintosh, regional companion and head of residential at Knight Frank MENA.
Meanwhile, the prime non commercial section has actually also logged sturdy expansion. Knight Frank information shows that the common transacted cost throughout 10 key neighborhoods rose 16% over the past 12 months to hit AED3,850 psf. In addition, sales of Dubai homes valued above US$ 10 million ($ 12.79 million) reached AED9.5 billion in 2Q2025, the highest possible quarterly number on file.
” The sustained progress in costs – currently coming close to 5 succeeding years ever since the current cycle started in November 2020 – is a clear sign of an extra steady and predictable market setting,” says Faisal Durrani, affiliate and head of research at Knight Frank Middle East and North Africa (MENA).
According to Durrani, drive in the villa segment will likely keep increasing. “Simply 20% of the planned housing supply through to the end of 2029 will fall in the villa group and with interest continuing to be centred on stand-alone family homes, the delta in between villa and apartment price performance may well continue to expand,” he discusses.
The Dubai real property market “has become much more stable, far more clear and is derived by solid fundamentals,” observes McKintosh. He includes: “This change is reeling in more long-term investors and end-users and is helping to reinforce Dubai’s placement as one of one of the most attractive residential markets internationally.”
