Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
The Dubai residential market continued to exceed in 2Q2025, upholding momentum that has propelled home values in the emirate. According to study by Knight Frank, Dubai housing costs grew 3.4% q-o-q and 13.7% y-o-y to hit an average of AED1,809 psf ($ 629 psf) in 2Q2025, denoting a new all-time high. Residential costs have now climbed 21.6% above the last market point noted in 2014.
” The continual growth in prices – now coming close to 5 successive years ever since the present cycle started in November 2020 – is a clear sign of a much more steady and predictable market atmosphere,” mentions Faisal Durrani, affiliate and head of research study at Knight Frank Middle East and North Africa (MENA).
Meanwhile, the prime non commercial segment has also logged sturdy development. Knight Frank data presents that the common negotiated rate throughout ten key areas rose 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 quarterly figure on record.
The surge in costs matches with quarterly sales quantity striking a new record of 51,000 last quarter. Off-plan sales accounted for almost 70% of all purchases, which indicates expanding capitalist confidence in brand-new Dubai developments, states Knight Frank. “The market is increasingly being formed by genuine customers instead of speculators, with resale activity within one year of purchase currently at just 4– 5%, contrasted to 25% in 2008,” includes Will McKintosh, regional companion and head of residential at Knight Frank MENA.
Over 94,000 residences in Dubai have currently been offered ever since the begin of the year, putting the market securely on track to go beyond the 169,000 deals documented for the whole of 2024. Generally, overall residential sales value clocked in at AED268 billion in 1H2025, 41% greater y-o-y.
The Dubai real estate market “has emerged as a lot more steady, more transparent and is underpinned by solid basics,” observes McKintosh. He adds: “This switch is drawing in more long-term financiers and end-users and is aiding to strengthen Dubai’s position as one of one of the most appealing residential markets internationally.”
According to Durrani, drive in the villa section will likely maintain expanding. “Simply 20% of the planned housing supply through to the end of 2029 will fall in the villa category and with interest continuing to be centred on stand-alone family homes, the delta in between villa and apartment price performance may well remain to widen,” he explains.
Within the Dubai property landscape, the villa sector has actually continued to lead the cost in price growth, outshining apartments. Villa rates increased 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment’s total price increase since 2014 to 49.3%.
Knight Frank has maintained its forecast for Dubai housing cost growth in 2025 at 8% for the common market and 5% for the prime sector.
