Dubai’s real estate market delivered a standout performance in Q2 2025, with total sales transactions soaring 44.5% year-on-year to AED 153.7 billion ($41.85 billion), according to a new report by JLL. The surge was primarily driven by strong demand for off-plan properties, complemented by a robust secondary market.
The report highlights Dubai’s ability to maintain momentum despite anticipated price moderation, signaling a more sustainable and balanced market. This adjustment is expected to impact older inventory first, as a steady pipeline of new projects continues to enter the market.
Residential sales climbed 22.8% year-on-year, with off-plan properties dominating transaction volumes. The secondary market also registered a healthy 17.1% increase, underscoring enduring investor confidence.
Dubai’s rental market remained active, with both new contracts and renewals seeing solid growth. New rental agreements rose 14.3%, while renewals climbed 9.9% year-on-year, accounting for 63% of all lease activity.
Price trends remained strong, with apartment prices rising 13.3% to AED 1,769 per sq. ft. and villa prices up 16% to AED 2,200 per sq. ft. Apartment rental rates increased 7.2% annually, while villa rents grew 5.3%, indicating a gradual move toward market equilibrium.
Dubai added 12,000 new residential units between April and June, bringing total stock to approximately 869,000 units. An additional 22,000 units are scheduled for delivery in the second half of the year, with the majority located in Dubailand, Jumeirah Village, and Mohammed Bin Rashid City. Apartments are expected to make up around 70% of the upcoming supply.
Abu Dhabi Market Performance
Abu Dhabi also reported a strong quarter, with average sales prices up 12.1% year-on-year and transaction volumes rising 9.1%. Growth was boosted by a 32.6% jump in secondary sales, although off-plan transactions remained the dominant driver.
Average apartment prices in Abu Dhabi grew 14.4%, while villa prices rose 11.1%. Rental rates also showed strength, with apartment rents up 13.9% and villa rents rising 4.7% by the end of Q2.
The capital delivered 3,400 new residential units during the quarter, bringing total stock to 292,000 units. Another 10,400 units are expected to be completed before the end of 2025, meeting rising demand for branded residences and luxury living options.
