Record-breaking real estate transaction in Dubai surpassing AED 3 billion
In the heart of the United Arab Emirates, Dubai's property market remains exceptionally strong, earning the title of "red-hot" in 2025. This robust growth is evident across both flats (apartments) and villas, with significant increases in sales volume and value.
According to recent reports, villa sales in the first half of 2025 surged 65% in value and 55% in volume compared to 2024. This surge saw transaction value jump from AED 71.6 billion to AED 118.5 billion, and deals increase from 13,135 to 20,415[1][4]. Apartments also showed impressive growth, with sales volume up 16% and value up 21% year-on-year, reaching AED 144.2 billion in the first half of 2025[1][4].
Prices have risen sharply, with average home values climbing nearly 24% year-on-year as of Q2 2025, though the pace slowed slightly to around 4.7% growth in that quarter[5]. Villas outperformed apartments, with villa prices increasing about 28.7% YoY. Some villa communities have seen spectacular price increases since 2021, such as Jumeirah Islands (+284%), Palm Jumeirah (+249%), and Arabian Ranches (+201%)[5]. In Q2 2025 alone, villa prices jumped 8.5% in prime areas like Jumeirah Islands and Palm Jumeirah[5].
The average sale price of residential properties rose impressively to AED 2.97 million in Q2 2025, with price per square foot reaching AED 1,823[2]. Transaction volumes also saw strong gains — Q2 2025 recorded 49,606 residential sales, a 22% increase from Q2 2024 and an 82% surge over Q2 2023[2].
Despite rising prices, more supply entering the market (over 72,000 new homes expected in 2025) is beginning to introduce some stability and slight easing in rental prices, particularly for certain luxury apartments and some high-end villas[3]. However, affordable and mid-tier villas remain highly sought-after, with rents rising up to 9% in popular areas[3].
In a significant move, global real estate consultancy Knight Frank brokered a landmark land sale near Emaar Creek Harbour. Valued at over Dh3 billion, including transfer fees, this sale ranks as the third-largest overall in Dubai's direct real estate transaction history[6]. The prime plot is located near Emaar Creek Harbour, a testament to the trust investors place in Dubai's strategic vision and infrastructure-driven growth. Knight Frank's capital markets team closed the largest land sale ever handled by a broker in Dubai, a deal that is seen as a reflection of the continued global appeal of Dubai's property sector[7].
This sale, like the red-hot property market, signals growing confidence in Dubai's long-term development trajectory, a sentiment shared by Knight Frank, who view the deal as a testament to the continued global appeal of Dubai's property sector[8]. The sale indicates strong investor sentiment towards Dubai's property market, a trend that continues to shape the city's vibrant real estate landscape.
References: 1. Property Finder 2. Dubai Land Department 3. Bayut 4. Knight Frank 5. Property Monitor 6. Emarat Al Youm Arabic daily 7. Knight Frank press release 8. Arabian Business
The villa sales surge in the first half of 2025, as reported by Knight Frank, marked a significant increase of 65% in value and 55% in volume compared to 2024, signaling a strong demand in the real estate market. In line with this growth, Dubai's business and finance sector is expected to flourish, creating a promising outlook for the city's long-term development.
The red-hot property market in Dubai, particularly the villa sector, has gained worldwide attention with the brokering of a landmark land sale near Emaar Creek Harbour, valued at over Dh3 billion. This move is reflective of international investors' rising confidence in Dubai's property market and its strategic vision for infrastructure-driven growth, making news headlines in the global business and finance sphere.
