Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
Knight Frank has maintained its forecast for Dubai real estate price development in 2025 at 8% for the mainstream industry and 5% for the prime segment.
Over 94,000 homes in Dubai have actually now been offered ever since the start of the year, placing the market firmly on track to go beyond the 169,000 deals registered for the entire of 2024. Generally, overall residential sales worth appeared at AED268 billion in 1H2025, 41% greater y-o-y.
The Dubai residence industry continued to break records in 2Q2025, sustaining drive that has propelled property worths in the emirate. According to study by Knight Frank, Dubai housing prices expanded 3.4% q-o-q and 13.7% y-o-y to hit approximately AED1,809 psf ($ 629 psf) in 2Q2025, marking a brand-new all-time high. Residential rates have currently surged 21.6% above the last market height noted in 2014.
The increase in rates matches with quarterly sales volume hitting a new log of 51,000 last quarter. Off-plan sales accounted for virtually 70% of all transactions, which indicates expanding capitalist trust in new Dubai property developments, says Knight Frank. “The marketplace is increasingly being formed by authentic investors rather than speculators, with resale activity within 12 months of acquisition currently at just 4– 5%, contrasted to 25% in 2008,” adds Will McKintosh, local partner and head of residential at Knight Frank MENA.
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The Dubai property market “has become more steady, more clear and is derived by solid principles,” observes McKintosh. He includes: “This switch is attracting more long-term financiers and end-users and is helping to enhance Dubai’s position as one of one of the most desirable residential markets internationally.”
Meanwhile, the prime housing sector has even logged sturdy development. Knight Frank information reveals that the standard negotiated price throughout 10 key areas increased 16% over the past 12 months to hit AED3,850 psf. On top of that, sales of Dubai homes priced above US$ 10 million ($ 12.79 million) reached AED9.5 billion in 2Q2025, the highest possible quarterly amount on history.
” The sustained development in rates – currently approaching 5 succeeding years ever since the present cycle started in November 2020 – is a clear sign of a much more secure and predictable market environment,” says Faisal Durrani, associate and head of research at Knight Frank Middle East and North Africa (MENA).
Within the Dubai property landscape, the villa section has actually remained to lead the cost in cost development, outmatching apartments. Villa costs rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the sector’s overall price buildup since 2014 to 49.3%.
According to Durrani, push in the villa sector will likely maintain increasing. “Simply 20% of the projected housing source through to the end of 2029 will drop in the villa classification and with need remaining centred on stand-alone family homes, the delta between villa and apartment price performance might well continue to expand,” he explains.
