Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
According to Durrani, drive in the villa sector will likely keep increasing. “Simply 20% of the planned housing supply through to the end of 2029 will fall in the villa group and with demand continuing to be centred on stand-alone family homes, the delta in between villa and apartment price performance may well remain to expand,” he discusses.
Knight Frank has actually maintained its forecast for Dubai housing price growth in 2025 at 8% for the conventional market and 5% for the prime section.
The Dubai housing market remained to exceed in 2Q2025, maintaining drive that has propelled home worths in the emirate. According to study by Knight Frank, Dubai real estate rates expanded 3.4% q-o-q and 13.7% y-o-y to strike an average of AED1,809 psf ($ 629 psf) in 2Q2025, marking a brand-new all-time high. Residential prices have currently risen 21.6% over the last market top documented in 2014.
Meanwhile, the prime housing segment has actually additionally logged strong expansion. Knight Frank data shows that the average negotiated price throughout 10 key areas climbed 16% over the past 12 months to hit AED3,850 psf. In addition, sales of Dubai homes priced above US$ 10 million ($ 12.79 million) reached AED9.5 billion in 2Q2025, the highest quarterly figure on file.
The increase in prices corresponds with quarterly sales amount striking a new log of 51,000 last quarter. Off-plan sales represented almost 70% of all transactions, which signifies expanding investor confidence in brand-new Dubai property developments, says Knight Frank. “The marketplace is progressively being formed by authentic investors rather than speculators, with resale event within 12 months of acquisition now at simply 4– 5%, compared to 25% in 2008,” adds Will McKintosh, regional companion and head of residential at Knight Frank MENA.
Over 94,000 residences in Dubai have actually now been offered from the start of the year, putting the market securely on track to go beyond the 169,000 deals recorded for the entire of 2024. Overall, complete residential sales worth clocked in at AED268 billion in 1H2025, 41% greater y-o-y.
” The continual growth in costs – currently moving toward 5 consecutive years since the current cycle began in November 2020 – is a clear indication of an extra secure and predictable market setting,” remarks Faisal Durrani, partner and head of research study at Knight Frank Middle East and North Africa (MENA).
Within the Dubai property landscape, the villa segment has remained to lead the charge in cost growth, outshining condos. Villa rates rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment’s overall price increase since 2014 to 49.3%.
The Dubai real property market “has actually emerged as more secure, more transparent and is derived by solid basics,” observes McKintosh. He adds: “This switch is pulling in even more long-term capitalists and end-users and is assisting to strengthen Dubai’s setting as one of one of the most appealing residential markets internationally.”
