Record number of homes sold in Dubai's second quarter, surpassing 51,000 sales
In the first six months of 2025, Dubai's property market has experienced a significant surge, with the number of transactions reaching an impressive 125,538 - a 26% increase from the same period in 2024. This growth is set to continue, with the market poised to surpass the Dh367 billion in home sales achieved last year.
The shift towards end-user activity in the Dubai property market is a positive indicator of its growing maturity and long-term sustainability. The total value of residential sales in the January to June period surged to Dh268 billion ($73 billion).
One of the key drivers of this growth is the high demand for luxury properties. Transactions exceeding AED10 million nearly doubled in 2025, fueled by an influx of approximately 13,000 new millionaires drawn to the UAE's stability and strategic investment environment.
Dubai's attractive tax regime, with zero personal income tax, and the availability of a 10-year residency visa for property buyers worth AED2.2 million or bank depositors of AED10 million, are also major factors drawing long-term investors. Exclusive residential communities like Palm Jumeirah, Emirates Hills, Dubai Hills Estate, and projects in DIFC offer privacy, prestige, waterfront access, and championship golf courses, providing bespoke luxury living experiences tailored to high-net-worth individuals (HNWIs).
Prime areas such as Dubai South and Jumeirah Village Circle (JVC) offer attractive net rental yields of 7-8%, with luxury projects in financial and leisure hubs appealing to investors seeking trophy assets. The city's economic and geopolitical stability, strategic location, robust rental yields, and diversified investment opportunities further enhance its appeal.
The average prime transacted price now stands at Dh3,850 per square foot, with prime residential areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate remaining the most sought-after locations. Residential prices grew by an average of 13.7% annually in the second quarter, and the luxury segment showed strong growth, with prime residential values rising by 16% over the past 12 months.
Villas continued to outperform the broader market in the second quarter, with values climbing to Dh2,172 per square foot, marking a 4% quarterly increase. Villa prices rose by 16% year-on-year in the second quarter, and as of the second quarter of 2025, there are 110,000 homes in Dubai with a value exceeding $1 million.
Knight Frank forecasts 8% growth in the mainstream market and 5% in the prime segment for 2025. With such promising growth prospects, Dubai continues to be an increasingly attractive destination for millionaires seeking secure, high-yield investments and a superior quality of life.
[1] Knight Frank (2025). The Wealth Report 2025. [2] Dubai Land Department (2025). Dubai Real Estate Market Overview: H1 2025. [3] Dubai Government (2025). Invest in Dubai. [4] Dubai Chamber of Commerce and Industry (2025). Dubai: A Global Hub for Business and Finance.
- The growth in Dubai's property market, as seen in the first half of 2025 with a 26% increase in transactions, is fueled in part by high demand for luxury properties and attractive investment opportunities.
- Dubai's market maturity is evident in the shift towards end-user activity, as indicated by the total value of residential sales reaching Dh268 billion ($73 billion) in the January to June period.
- The UAE's stability and strategic investment environment have drawn approximately 13,000 new millionaires, leading to a near doubling of transactions exceeding AED10 million in 2025.
- The city's economic and geopolitical stability, robust rental yields, and diversified investment opportunities, along with an attractive tax regime and long-term investment incentives, make Dubai an increasingly attractive destination for global business and finance.
- Knight Frank has forecasted 8% growth in the mainstream market and 5% in the prime segment for 2025, further enhancing Dubai's appeal as a secure, high-yield investment destination for high-net-worth individuals (HNWIs) seeking superior quality of life.
