Dubai Residential Market Deals Reach Record Levels in Q2

Underscoring the Emirate’s continued ability to hit a sweet spot between investment potential and quality of life, Dubai’s residential market closed the second quarter of 2025 with over 50,000 real estate deals, the highest quarterly volume on record and up 21% y-o-y, according to Dubai-based real estate firm Savills.

In its latest report on Dubai Residential Market for the second quarter, Savills said that the Emirates residential real estate market reached record levels once again in Q2 2025, underpinned by Dubai’s sustained appeal.

The positive momentum is supported by an influx of high net-worth individuals, anticipated population growth, with Dubai Statistics Centre estimating Dubai’s population will reach four million by the end of this year, and a strong UAE GDP growth forecast, revised upwards in June 2025 by Oxford Economics to 5.1%, from 4.7%.

Real estate demand remains strong with continued value appreciation across the sector, the report said.

The Emirate’s tax-free ecosystem, the ease of securing mortgages, a comparatively lower cost of property ownership versus other global gateway cities, and rising rents — a growing pinch point for tenants — are all contributing to a clear shift toward homeownership among expatriates and continued appeal for investors.

Transaction Volumes

Apartments dominated the market activity, accounting for 80% of all transactions. Off-plan sales continued as the cornerstone of transaction activity, representing 70% of all deals in Q2 2025 — increasing marginally on the 68% share throughout 2024 and significantly higher than 55% in 2023, the report said.

Zone 6 recorded the highest level of activity again during Q2, accounting for 53% of total transaction volumes. The zone covers prominent micro-markets located along the Al Khail corridor, including Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons.

This area continues to see significant development, transforming a once peripheral zone to an attractive proposition to investors and end users. 49% of all newly launched residential units were within Zone 6 along the Al Khail Corridor.

“Key project launches in Zone 6 during the quarter include Parkwood by Emaar in Dubai Hills Estate, Timez by Danube in Dubai Silicon Oasis, Ostra and Palace Villas by Emaar in The Oasis, and Acres 3 by Meraas in Dubailand, among others,” Savills explained.

Ready Market

The ready market — comprising transactions in completed and handed-over projects — continued to demonstrate stable activity during Q2 2025 with over 15,000 transactions. This reflects a continuation of the steady pace in the last 12 months, when quarterly ready market transactions averaged around 14,500.

Within the ready market, apartment sales accounted for 83% of transactions in Q2 2025, a level consistent with the 82% recorded throughout 2024, when a notable shift toward apartment dominance first emerged.

This was up from 75% in both 2023 and 2022, reflecting the continued preference for apartment units in the market amid availability and affordability pressures, the report said.

New Launches

Dubai’s residential market witnessed robust supply activity, with nearly 20,000 units launches in Q2 2025. H1 2025 has seen 52,000 launched, showing a 66% increase compared to the same period last year. This surge is largely attributed to developers capitalising on strong market demand.

Apartments have dominated the market, accounting for 91% of new launches. Whilst villas and townhouse launches were limited, masterplan announcements including Phase 2 of Jumeirah Golf Estates and Jebel Ali Racecourse promise further future supply, the report said.