July 24, 2025 | Dubai, UAE – Dubai real estate sector is on a curve of brilliant growth with the second quarter of 2025. The Dubai property market is growing like never before, and all the provided data is evidence of the positive performance of Dubai real estate.
According to the data given by Knight Frank, a leading Dubai real estate consultancy, in a historic first, Dubai property market has recorded over 50,000 home sales in a single quarter. They report that the second quarter (Q2), which lasted from April to June of 2025, saw 51,000 residential transactions. A remarkable share of these deals involved end-users, the segment that Dubai is actively focused on attracting with its newly launched “First Home Initiative.”
The program was introduced earlier this month, and it is aimed at young, first-time buyers and new entrants in the city to take the first step in Dubai Real Estate Circle. In the first half of the year 2025, Dubai Property Market boasts over 94,000 home sales, with a collection of Dh268 billion in value. The numbers mark a 41% growth from the same period of last year.
“With this momentum, 2025 is poised to surpass the Dh367 billion achieved in 2024,” says Knight Frank in the report.
Demand For Luxe Property In Dubai Real Estate Market
Second quarter of 2025 saw a massive turnover of Dh9.5 billion from 143 sales of properties priced at $10 million and above. This marked the record for the highest quarterly total in Dubai Property Market. Out of the 143 premium transactions, the sales of 80 apartments had taken over the 63 deals made for the villas. At this standard of price, this sales data was seen first time since Q2 of 2023.
Faisal Durrani, Head of Research for MENA markets at Knight Frank, said, “The sustained growth in prices – now approaching five consecutive years since the current cycle began in November 2020 – is a clear sign of a more stable and predictable market environment. This is precisely the kind of consistency that global investors seek. Knight Frank’s forecasts for 2025 remain unchanged, with 8% growth expected in the mainstream market and 5% in the prime segment.”
Pricing Trends in the Dubai Property Markets
Recent data even suggests that Dubai real estate prices are not showing signs of a drop, despite many expecting so. On the contrary, the data from Frank Knight shows that there was an increase of 3.4% during the second quarter of 2025, with one square foot totaling Dh1809. The price shows a major surge from the last peak, which happened in 2014, with about a 21.6% rise.
This push came from the launch of the luxury off-plan developments in recent weeks, which entered the market at a premium price standard. Additionally, the breakthrough deals in areas such as Al Bararu and Sheikh Zayed Road have contributed to the surge of the price benchmarks. The off-plan transactions still stand firm, making up about 70% of total home sales in Dubai real estate business in Q2-2025.
Will McKintosh, Regional Partner and Head of Residential at Knight Frank, notes that the Dubai property market is highly in demand by intentional buyers rather than short-term speculators. He pointed out that the resales have dropped to just 4%-5% within a year of purchase. It shows a notable decline from the 25% mark in 2008. McKintosh added that this shift signals a stable, long-term and sustained market.
The Dubai property market expects to stay stable in the second half of 2025. One can hope to see steady sales, an increase in end-user demand, and modest price revisions with the bringing of new supplies. Knight Frank notes that premium areas like Palm Jumeirah attract global investors as always; however, now, buyers are more cautious and research-driven due to the economic uncertainty.
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