Dubai Real Estate H1 2025, Explained: Transactions, Segments, and Nationalities in Focus

The Big Number: A Market on Fire

Dubai’s property sector has been unstoppable in 2025. According to the UAE’s WAM, total property sales for the first half of the year hit AED 326.64 billion, representing a remarkable 40 percent increase compared to the same period in 2024. This headline number is more than just a statistic—it’s a clear sign of a maturing market with expanding depth across both residential and commercial segments. The growth reflects rising investor confidence, attractive visa-linked incentives, and a diversified pool of buyers from across the globe.

Residential Market: Off-Plan Drives the Cycle

The strongest driver of growth in H1 2025 was the residential segment. CBRE’s Q2 2025 review confirms nearly 95,000 residential transactions were recorded with a total value of AED 270 billion. Out of this, off-plan sales alone captured AED 192 billion—roughly 71 percent of total value. Ready properties contributed AED 77 billion, proving that demand remains broad-based.

Why does off-plan continue to dominate? The reasons are threefold:

1. Heavy Launch Calendar – Developers continue to roll out projects at a rapid pace, offering flexible post-handover payment plans.

2. Strong Developer Credibility – Reputation and trust have grown as Dubai developers deliver on time and raise quality benchmarks.

3. Investor Appetite – Buyers, especially international ones, are drawn to the capital growth potential and the relatively low entry points compared to ready units.

   
   

Apartments vs Villas: A Tale of Two Segments

Apartments remain the backbone of Dubai’s real estate market, dominating transaction volumes across both off-plan and secondary sales. However, villas and townhouses have carved a strong niche, particularly at the ultra-prime level. Knight Frank reported 435 sales priced above US $10 million in 2024, and Q2 2025 has already surpassed that benchmark in terms of total value. Limited supply in prime villa districts like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate ensures prices remain firm even as apartments account for most of the deal flow.

Who Is Buying? Nationalities in the Spotlight:

One of Dubai’s biggest strengths is its international appeal. According to Betterhomes’ FY 2024 report, India and the UK topped the list of buyer nationalities, with Pakistan consistently in the top three. By Q2 2025, the UK briefly overtook India in transaction volumes, highlighting a dynamic mix of buyers. Meanwhile, demand from Europe and the MENA region is also on the rise, broadening the investor base and diversifying sources of capital inflows.

Risks and Considerations:

Despite the strong momentum, there are factors investors must watch. CBRE highlighted a seasonal slowdown in June 2025, consistent with summer patterns. Broader global financial conditions and geopolitical uncertainties can also shape investor sentiment. For smart investors, the key strategy is to focus on H1 and H2 aggregates instead of month-to-month fluctuations, and to prioritize developers with proven track records.

Investor Takeaway

Dubai’s H1 2025 performance underscores resilience and scale. Apartments provide liquidity and rental yields, villas deliver exclusivity and long-term appreciation, and off-plan launches create opportunities for capital growth. With a broadening mix of nationalities and robust government support, Dubai’s property sector continues to offer a compelling investment case.