Prime Highlight
- Dubai’s property market closed 2025 stronger than expected, with price growth surpassing forecasts, driven mainly by rising demand for villas.
- Villas significantly outperformed apartments, reinforcing their position as the top-performing segment in Dubai’s real estate market.
Key Facts
- The ValuStrat Price Index reached 240.4 points in December, showing a 19.8% annual increase, while villa prices rose 25.1% year-on-year.
- Off-plan properties accounted for 76% of residential sales, with high-value transactions above AED30 million concentrated in prime communities like Palm Jumeirah and Emirates Hills.
Background
Dubai’s property market ended 2025 on a strong note, with prices rising faster than expected, led by continued demand for villas, according to the latest ValuStrat Price Index.
The index climbed to 240.4 points in December, showing a monthly increase of 1.3% and an annual rise of 19.8%, beating the earlier growth forecast of 18%. Villa values reached 323.9 points, while apartment values stood at 185.9 points, based on a January 2021 index level of 100.
Villas remained the best-performing segment. Their prices grew 1.7% month-on-month and 25.1% over the year. The strongest gains came from communities such as Jumeirah Islands, Palm Jumeirah, Green Community West, and The Meadows. In contrast, areas like Victory Heights and Mudon recorded the slowest growth. On average, freehold villa prices now sit 211% above post-pandemic levels and are 89% higher than the 2014 peak.
Apartment prices increased at a slower pace. They rose 0.9% from November and 14.2% year-on-year. Locations such as Remraam, Dubai Silicon Oasis, The Greens, Dubailand Residence Complex, and Town Square delivered the highest yearly growth. Apartment prices are now 85% higher than post-pandemic levels and have just crossed the previous 2014 peak.
The off-plan segment also showed strong activity. Oqood registrations were flat on a monthly basis but were 30.8% higher than last year, making up 76% of all residential sales. Ready-home transactions fell 9.7% from November but still recorded a 3% annual rise.
A total of 27 ready-home deals above AED30 million took place, with 10 sales crossing AED50 million, mainly in Palm Jumeirah, Dubai Hills Estate, Al Barari, and Emirates Hills.
