In February 2025, Dubai’s residential property market experienced its slowest growth in 20 months, reflecting a maturing market and increased property deliveries. The ValuStrat Price Index (VPI) rose by 1.6% month-on-month to 207.5 points, marking a 26.5% year-on-year increase. Villa valuations increased by 2%, down from a peak of 2.7%, reaching 269.6 points, while apartment values grew by 1.2%, a decrease from a previous high of 2%, reaching 167 points.
Annually, villa capital values saw a 30.8% rise, with notable performers including Jumeirah Islands (42.3%), Palm Jumeirah (41.8%), Emirates Hills (31.2%), and The Meadows (29.9%). Mudon experienced the lowest gain at 10.5%, maintaining stability for six consecutive months. On average, freehold villa prices are now 57% above the previous market peak and 160% higher than post-pandemic levels.
Apartment prices registered a 22.2% annual growth, with significant increases in The Greens (28.9%), Palm Jumeirah (26.3%), Dubailand Residence Complex (25.7%), The Views (25.4%), and Town Square (25.1%). In contrast, International City and Dubai Sports City recorded the lowest annual gains at 15.4% and 17.9%, respectively. Currently, apartment valuations remain 9% below the previous market peak but are 65% higher than post-pandemic levels.
Off-plan property transactions saw a 22.2% monthly increase and a 59.5% annual rise, comprising 70.8% of all home sales in February. Ready secondary-home transactions also grew by 12.8% month-on-month and 9.8% year-on-year. There were 31 transactions for ready properties priced over Dh30 million, located in areas such as Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One, and Jumeirah Golf Estates.
Leading developers in February 2025 included Emaar (17.5%), Damac (12.7%), Sobha (4.8%), Nakheel (4.3%), Dubai Properties (4.3%), and Samana (2.6%). Top off-plan transaction locations were Jumeirah Village Circle (7.1%), The Valley (6.5%), Damac Island City (5.5%), Emaar South (5%), and Dubailand Residence Complex (4.9%). Dubai Silicon Oasis set a new record with the highest number of off-plan homes traded in a single month. For ready homes, Jumeirah Village Circle (9.9%), Business Bay (7.4%), International City (5.6%), Dubai Marina (5.4%), Downtown Dubai (5.2%), and Jumeirah Lake Towers (3.3%) were the most active areas. Emirates Hills also recorded its highest number of ready home transactions in a month.
Overall, while Dubai’s property market continues to grow, the recent slowdown in price increases indicates a stabilizing market as supply catches up with demand.
