Dubai’s residential property market saw villa prices triple since the pandemic, while apartment values surged by 80% since early 2021, according to the latest Q3 2025 report from ValuStrat. Despite a general easing in growth momentum, the market remains robust, with off-plan sales hitting a new record high.
Villa Prices Triple Since Pandemic
Dubai’s residential property market saw villa prices triple since the pandemic, while apartment values surged by 80% since early 2021, according to the latest Q3 2025 report from ValuStrat. Despite a general easing in growth momentum, the market remains robust, with off-plan sales hitting a new record high, underscoring strong investor confidence that has pushed Dubai real estate sales past previous records.
The ValuStrat Price Index (VPI) for Dubai’s citywide freehold residential market registered a 21.3% annual increase in the third quarter, reaching 230.6 points. On a quarterly basis, the growth was 4.4%, indicating a moderation from the 23.9% annual rise seen in the previous quarter.
Villas Lead Market Performance
Villas continue to significantly outperform apartments. The valuation-based index for villas climbed to 307.5 points, a 26.4% annual increase and a 5.5% quarterly rise. Prime locations such as Jumeirah Islands and Palm Jumeirah recorded the strongest quarterly growth at 7.8% each. This sustained demand for high-end properties aligns with recent launches, including Nakheel’s new villa designs at Palm Jebel Ali.
In contrast, apartment prices saw a more modest 16.1% annual and 3.3% quarterly increase, with the VPI reaching 180.4 points. The highest quarterly gains were observed in communities like Remraam and Dubai Silicon Oasis (both 4.9%), while areas such as Dubai Marina posted slower growth (2.9%).
Prime Segment and Rental Market
Dubai’s prime property segment, where homes are valued at AED 21,528 per square metre or more, has more than doubled in value since the first quarter of 2021, with its VPI standing at 242.1 points. However, the quarterly growth of 4.6% was the lowest recorded in two years, signalling a potential stabilization in the high-end market.
Residential rental values saw a 4.7% annual increase, though they remained stable on a quarterly basis. The average yearly rent for apartments stood at AED 96,300, while villas averaged AED 429,500.
Record Off-Plan Sales and Future Supply
A standout trend for Q3 2025 was the performance of the off-plan market. Oqood (contract) registrations surged by 36.2% year-on-year to a record high of 44,890 transactions, representing an investment value of approximately AED 108 billion.
In terms of new supply, an estimated 64,407 homes are projected for completion in 2025. By the end of Q3, 24,261 units had been delivered. Major completions included projects in Business Bay, Dubai Hills Estate, and Damac Lagoons. With major developers like Emaar recently announcing the AED 100 billion Emaar Hills masterplan, the development pipeline remains strong, with nearly 200,000 homes currently under construction and scheduled for handover by 2029.
