Dubai’s real estate market is still on fire, but it’s showing signs of changing gears. Prices, sales, and mortgages are hitting record highs, while new projects keep flooding the market. Here’s the story in plain language:

Prices at Record Highs

• Average property prices in Dubai are now 30.5% higher than the last market peak in 2014.
• In July, prices rose by about 1%, which is slower than June’s growth (1.7%).
• Apartments are growing at a slower pace, while villas and townhouses are still gaining momentum.

Example: Imagine you bought an apartment in 2014 for AED 1 million. Today, that same property could be worth over AED 1.3 million.

Sales Volumes Keep Breaking Records

• July saw 20,116 sales transactions, up 21% from June.
• 2025 is shaping up to be a record-breaking year, with over 119,000 transactions so far – 3% more than last year.
• At this pace, total sales for 2025 could pass 200,000, a new all-time high.

Most of these sales are residential properties (apartments, villas, and townhouses). Offices, hotels, and retail spaces make up the rest.

Mortgages Hit New Highs

• Nearly 4,900 mortgages were recorded in July, the highest ever.
• Average loan size: AED 1.8 million.
• Most loans (45%) were for new purchases, but refinancing and equity release also grew.
• Buyers still need more cash upfront due to lending restrictions, yet the demand shows strong confidence in the market.

New Projects Flooding the Market

• July alone saw 50 new project launches, adding 13,800+ homes worth about AED 38 billion.
• Year-to-date: nearly 93,000 units launched – what used to take a full year is now happening in just seven months.
• Most of these are apartments (95%).

But with so many new launches, buyers now have more choices. Properties that used to sell out in hours may take longer, as buyers compare carefully before committing.

What It All Means

• Dubai’s property market is still strong, but it’s shifting.
• Prices are rising more slowly, sales are at record highs, and developers are pushing out massive amounts of new supply.
• Buyers are becoming more value-focused, looking for quality and realistic pricing instead of rushing in.
• The big test: Can the market absorb all this new supply without losing momentum?

Takeaway:
If you’re thinking about buying in Dubai, the market is active, and confidence is high but it’s also becoming more competitive. Now more than ever, it pays to compare options and focus on long-term value instead of hype.