Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
The Dubai real property market “has turned into extra stable, even more clear and is derived by solid basics,” observes McKintosh. He includes: “This shift is pulling in more long-term investors and end-users and is helping to reinforce Dubai’s position as one of the most attractive residential markets worldwide.”
The Dubai non commercial industry continued to exceed in 2Q2025, upholding drive that has propelled home values in the emirate. According to research study by Knight Frank, Dubai real estate rates expanded 3.4% q-o-q and 13.7% y-o-y to strike approximately AED1,809 psf ($ 629 psf) in 2Q2025, marking a new all-time high. Residential rates have currently surged 21.6% above the past market point noted in 2014.
” The sustained progress in prices – currently approaching five consecutive years since the present cycle started in November 2020 – is a clear sign of a more steady and predictable market setting,” says Faisal Durrani, associate and head of research at Knight Frank Middle East and North Africa (MENA).
Knight Frank has maintained its forecast for Dubai real estate price development in 2025 at 8% for the mainstream market and 5% for the prime sector.
Over 94,000 homes in Dubai have actually now been sold since the beginning of the year, placing the market securely on track to surpass the 169,000 deals documented for the whole of 2024. On the whole, complete residential sales worth clocked in at AED268 billion in 1H2025, 41% greater y-o-y.
Within the Dubai property landscape, the villa segment has remained to lead the charge in price development, outmatching flats. Villa costs climbed 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment’s total price increase since 2014 to 49.3%.
According to Durrani, push in the villa sector will likely keep increasing. “Simply 20% of the projected housing supply through to the end of 2029 will drop in the villa category and with demand remaining centred on stand-alone family homes, the delta between villa and apartment price performance may well remain to broaden,” he discusses.
The rise in rates matches with quarterly sales amount hitting a new log of 51,000 last quarter. Off-plan sales accounted for almost 70% of all deals, which signals growing investor assurance in new Dubai projects, claims Knight Frank. “The market is increasingly being shaped by real buyers as opposed to speculators, with resale event within twelve month of acquisition currently at simply 4– 5%, compared to 25% in 2008,” adds Will McKintosh, regional partner and head of residential at Knight Frank MENA.
Meanwhile, the prime non commercial section has additionally logged strong growth. Knight Frank data presents that the standard negotiated cost across ten key neighborhoods increased 16% over the past 12 months to hit AED3,850 psf. Additionally, sales of Dubai homes valued above US$ 10 million ($ 12.79 million) got to AED9.5 billion in 2Q2025, the highest quarterly number on history.
