Dubai's real estate market grew by 46% in secondary sales reaching $70.8 billion

Dubai, July 3, 2025 — Dubai's property market has recorded a powerful first half of 2025, with total real estate sales reaching AED260 billion ($70.8 billion) — a 35% increase compared to the same period in 2024. While this shows overall market strength and continued investor confidence, the real standout is the dramatic rise in villa and townhouse sales, reflecting a growing appetite for spacious, family-friendly living in well-established communities.

According to new data released by the Dubai Land Department (DLD) and leading property agency Allsopp & Allsopp, villa and townhouse transaction values have soared by 55% year-on-year — a clear signal that demand for larger homes remains strong. In comparison, apartment sales transaction value rose by just 22%.

Secondary Market Takes the Lead
The secondary, or resale, property market is leading the current growth wave. Sales transaction value in this segment jumped by 46% year-on-year, easily outpacing the 25% growth seen in the off-plan market. This shift suggests that buyers now prefer ready-to-move-in homes, especially in a market where supply remains tight and occupancy is a key priority.

Average resale prices in the secondary market rose by 15%, while off-plan properties saw only a 5% increase. This change in buyer behavior is largely driven by a lack of new villas and townhouses available for immediate occupancy.

Family Homes in High Demand
Villas and townhouses made up only 22% of secondary transactions by volume, but their performance in price growth and total value far exceeded apartments. Allsopp & Allsopp reported a 49% rise in average sales prices for villas and townhouses compared to the first half of 2024. In contrast, apartments recorded a 30% increase in transaction value.

Popular family-oriented neighborhoods such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have seen heightened activity. These communities are favored for their blend of space, privacy, and lifestyle-focused amenities — key priorities for families and long-term residents.

Renovated Properties See Premium Pricing
The ongoing shortage of newly constructed family homes has pushed both investors and end-users to explore renovated resale properties. Many are choosing to upgrade older villas and townhouses, and these fully renovated, turnkey homes are commanding premium resale values in the current market.

“This trend has made high-quality, move-in ready homes extremely attractive,” said Lewis Allsopp, Chairman of Allsopp & Allsopp. “In the AED5 to AED10 million price range, we’ve seen a 50% increase in sales. But more striking is the 113% jump in ultra-luxury villa sales, above AED10 million. That shows not just buyer interest — it shows serious wealth and long-term confidence entering the market.”

Investment-Driven Growth in Prime Areas
Allsopp added that this level of transaction volume highlights increasing trust among investors, especially high-net-worth individuals looking for stable, long-term capital growth in Dubai. The emirate is proving attractive not only for its luxury lifestyle but also for its reliable return on investment, especially in the family home segment.

Properties in prime communities, with their limited supply and proven rental yields, are now seen as safe and rewarding assets in both local and global investment portfolios.

Outlook for the Rest of 2025
Looking ahead, Allsopp & Allsopp expects the secondary market to remain the key growth engine for Dubai real estate. Villas and townhouses — both newly built and upgraded — are expected to lead the way due to their appeal to families, residents seeking more space, and investors who understand the long-term value of ready, quality homes.

With construction timelines still catching up and urban demand outpacing new supply, the pressure on the villa and townhouse segment is likely to remain high in the coming months.

For now, Dubai’s real estate market continues to show resilience, confidence, and growth, especially in the segments where demand is not only stable but rising rapidly. The family home market — once considered niche — is now firmly at the heart of the city's property success story in 2025.