Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
Over 94,000 homes in Dubai have actually now been marketed ever since the start of the year, putting the market firmly on track to exceed the 169,000 deals recorded for the whole of 2024. In general, complete residential sales worth clocked in at AED268 billion in 1H2025, 41% greater y-o-y.
According to Durrani, drive in the villa segment will likely maintain increasing. “Simply 20% of the projected housing supply through to the end of 2029 will fall in the villa category and with need staying centred on stand-alone family homes, the delta in between villa and apartment price performance may well remain to widen,” he clarifies.
The Dubai real estate market “has actually turned into extra secure, more clear and is derived by solid basics,” observes McKintosh. He includes: “This shift is attracting more long-term investors and end-users and is helping to reinforce Dubai’s setting as one of the most appealing residential markets worldwide.”
” The continual growth in prices – now coming close to five succeeding years ever since the current cycle began in November 2020 – is a clear sign of a much more secure and foreseeable market setting,” mentions Faisal Durrani, partner and head of research study at Knight Frank Middle East and North Africa (MENA).
The rise in rates coincides with quarterly sales amount striking a new log of 51,000 last quarter. Off-plan sales made up nearly 70% of all transactions, which signifies expanding financier confidence in new Dubai projects, states Knight Frank. “The marketplace is increasingly being formed by authentic investors rather than speculators, with resale event within one year of purchase now at just 4– 5%, compared to 25% in 2008,” includes Will McKintosh, local partner and head of residential at Knight Frank MENA.
Within the Dubai property landscape, the villa section has actually continued to lead the charge in rate growth, outshining flats. Villa prices rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the sector’s overall price buildup since 2014 to 49.3%.
Knight Frank has maintained its forecast for Dubai housing price development in 2025 at 8% for the mainstream market and 5% for the prime sector.
The Dubai non commercial industry remained to exceed in 2Q2025, sustaining momentum that has propelled residential property worths in the emirate. According to research by Knight Frank, Dubai housing costs expanded 3.4% q-o-q and 13.7% y-o-y to hit approximately AED1,809 psf ($ 629 psf) in 2Q2025, observing a new all-time high. Residential prices have currently surged 21.6% over the past market top noted in 2014.
Meanwhile, the prime non commercial section has even logged strong expansion. Knight Frank information shows that the common transacted rate throughout 10 key communities climbed 16% over the past 12 months to hit AED3,850 psf. On top of that, sales of Dubai homes valued over US$ 10 million ($ 12.79 million) reached AED9.5 billion in 2Q2025, the highest quarterly amount on file.
