24,000 New Units Delivered in Nine Months
(Source: Al Khaleej Newspaper)
A new report from ValuStrat for the third quarter of 2025 reveals that Dubai’s real estate market continues to show strong growth momentum despite early signs of a slowdown. Residential villa prices have now tripled (up 300%) since the COVID-19 pandemic, with some high-end neighborhoods recording increases of up to 400%.
According to the report, the ValuStrat Price Index (VPI) for the residential market rose 21.3% year-on-year during Q3 2025, compared to 23.9% in the previous quarter and 28.9% during the same period last year. The index reached 230.6 points, based on a baseline of 100 points in Q1 2021.
During the first nine months of the year, 24,000 new residential units were handed over, with total deliveries expected to exceed 27,000 units by the end of 2025. In addition, there are currently 158,854 apartments and 40,173 villas under construction, scheduled for delivery by 2029.
Villas Lead Market Performance
The report highlighted that villas continue to outperform apartments by a wide margin, driven by limited supply in prime, high-demand locations. The villa price index rose to 307.5 points, reflecting annual growth of 26.4% and a quarterly increase of 5.5%. The strongest quarterly gains were seen in Jumeirah Islands and Palm Jumeirah, both posting 7.8% growth.
In contrast, apartment values grew 16.1% year-on-year and 3.3% quarter-on-quarter, reaching 180.4 points. The highest increases were recorded in Remraam and Dubai Silicon Oasis, both registering 4.9% growth.
Luxury Residential Segment
The luxury housing market—defined as properties priced above AED 2,000 per square foot—now represents about 35% of Dubai’s freehold residential market. The luxury price index climbed to 242.1 points in Q3, more than double its level in 2021.
Luxury villas saw annual growth of 29.2% and quarterly growth of 5.9%, reaching 321.6 points, while luxury apartments rose 16.2% year-on-year to 193.6 points.
Ready Home Sales
The third quarter recorded 12,451 ready-home transactions, down 9.1% from the previous quarter and 3.4% from last year, with an average transaction value of AED 2.6 million.
Off-plan sales, however, surged, reaching 44,890 transactions, up 25.6% quarter-on-quarter and 36.2% year-on-year, with a total investment value exceeding AED 108 billion.
Strong Office Demand
The report also noted sustained demand in Dubai’s commercial office sector, where property values rose 27.5% year-on-year to reach 277.8 points. Office rental rates also increased by 4% during Q3, further reflecting the emirate’s robust economic fundamentals and ongoing business expansion.