Dubai’s real estate sector continued to show robust growth through May 2025, with both villas and apartments demonstrating strong appreciation trends.Over the past 17 months, villa prices have risen by 26.7% while apartment prices have grown by 24.1%.The price differential between the two asset classes has widened to AED 413 per square foot, underscoring increased demand for luxury villa living and continued supply constraints. While villas sustained strong momentum – particularly in premium and family – centric communities – apartment price growth plateaued briefly in Q4 2024, suggesting the need for close monitoring of buyer appetite in this segment going forward.
- Palm Jumeirah remained the highest- priced location for both apartment and villa sales. Apartment prices on the Palm rose to an average of AED 3,263 per square foot, registering a month – on – month increase of 2.6%, while villa prices, though still leading at AED 5,861 per square foot, recorded a 3.5% month- on – month decline – likely indicating a short – term correction after sustained highs.
- Strong demand shifts were seen in emerging or lifestyle-oriented communities like Mohammed Bin Rashid City, The Lakes, and Dubai Hills Estate, which all posted notable price growth. Meanwhile, traditional luxury enclaves such as Emirates Hills and Jumeirah Islands reflected softer performance, suggesting a pivot in buyer preference toward newer inventory.
- The market dynamics illustrate a growing bifurcation, with large-scale premium developers at the top end and affordable housing players gaining ground through focused strategies.
- The luxury segment, defined by transactions exceeding AED 10 million, continues to thrive, accounting for a significant share of Dubai’s real estate activity. Notably, 81% of the total value in luxury transactions year-to-date has come from off-plan sales, amounting to AED 15.1 billion. Villas continue to dominate, representing nearly three-quarters of value and volume in both off-plan and ready segments.
- The Oasis emerged as the top-performing off-plan luxury community, while Palm Jumeirah retained its status as the strongest performer in the ready resale market. Record-setting deals further reinforced market confidence: a villa in the EOME project at Palm Jumeirah sold for AED 300 million (AED 18,534 per square foot), and off-plan apartments at La Mer by Meraas reached AED 10,367 per square foot.
- The Dubai government launched the second phase of its Dubai 2040 Urban Master Plan, aiming to promote sustainable and human-centric development. This phase focuses on expanding waterfront access, enhancing public transportation networks, and promoting the concept of “20-minute neighborhoods”.
- In support of environmental sustainability, Dubai Municipality updated its green building mandates to align with global best practices. All new residential developments must now disclose energy efficiency ratings, while those meeting LEED or WELL certification standards will benefit from expedited approvals and potential fee reductions.
- May also saw regional collaborations that enhanced Dubai’s position as a sustainability hub. The groundbreaking of Sustainable City Yiti in Oman, a joint initiative involving UAE-based developers, extended Dubai’s green community influence across borders.