The UAE real estate market continued its momentum in the second quarter of 2025. Across both Dubai and Abu Dhabi, sales activity in both off-plan and ready-to-move and off-plan property segments set new records.
That said, not all segments or locations behaved the same; some pockets began to show signs of moderation, especially in pricing for certain communities.
Dubai recorded its single strongest quarter ever: 53,252 property sales worth AED 184.3 billion, a 22% year-on-year increase in volume and a 49% jump in value.
In Dubai, ready (completed) homes and off-plan launches both contributed meaningfully to that record performance.
Abu Dhabi’s market was more measured but still healthy. The emirate has about 3,953 transactions worth AED 12.5 billion.
This was a 10% increase in volume and a 48% increase in total value compared to the second quarter of 2024.
Ready property sales were the main reason for the growth, while off-plan sales had fewer units but a higher total value because of the launch of premium projects. (According to CBRE).
Overall, the UAE property market was strong. Investors and end users were confident, property values were rising in many areas, and there was plenty of cash flow.
The real estate market in the UAE is still a major driver of growth, thanks to government support and continued interest from abroad.
Abu Dhabi Real Estate Market Overview
There was a remarkable growth in the Abu Dhabi real estate market during the second quarter of 2025, with the trend weighing mostly towards ready properties (secondary market).
There was a lot of demand in established communities, from end-users, especially families and long-term residents. Investors also remained active in some select off-plan launches.
Overall Real Estate Transactions in Abu Dhabi
- Total number of transactions: 3,593 worth AED 12.5 billion.
- Year-on-year growth: +10% in volume and +48% in value compared to Q2 2024.
- Residential share: 97% of all agreements (by volume), which shows that demand for housing is steady.
- Commercial share: 3% of deals, which is a small but steady amount.
This result shows that people trust the housing market in the UAE. Abu Dhabi has steady prices and a lot of demand for high-end waterfront and island developments.
Off-Plan Property Sales in Abu Dhabi
The off-plan market in Abu Dhabi was kind of a mixed picture.
- There were 1,955 off-plan transactions in the second quarter of 2025.
- That’s an 8% drop in the number of units sold compared to last year. But the total value jumped 34%, going from AED 5.1 billion in the second quarter of 2024 to AED 6.9 billion in the second quarter of 2025.
Looking at the mixed picture (less sales, more value), one can conclude that the launch of several luxurious properties is what caused a significant rise in value.
Market reports show that wealthy investors were drawn to newly launched projects like Bal Ghaiylam, Manarat Living III, Solea, and The Fountain View Residence.
These projects sold fewer units but at higher prices. This shows that the UAE property market is moving toward more luxury homes.
Ready Property Sales in Abu Dhabi
The ready market segment grew the most:
- 1,638 ready transactions in the second quarter of 2025, up 43% from the same time last year.
- The total value of the deals was AED 5.6 billion, which is 70% more than the AED 3.3 billion that were made in Q2 2024.
Some of the communities that helped this growth were:
- The value of Yas Island, a popular place for families, went up 79% from last year.
- Saadiyat Island kept getting customers who wanted to live near the beach and in a cultural area.
- Al Reem Island: The best place to find apartments with modern conveniences.
These places show how strong Abu Dhabi’s housing market is because new homes are always being sold and property prices in Dubai aren’t going down here.
Prices in Abu Dhabi have stayed the same, but they have gone up a little in some high-end areas.
Dubai Real Estate Market Overview
In the second quarter of 2025, Dubai’s real estate market had its best quarter ever. Both ready homes and off-plan sales helped this growth.
Overall demand came from people who were renting and wanted to buy, international investors, and long-term residents who wanted the security of owning.
Total Transactions:
Dubai witnessed a total of 53,252 transactions, which are worth AED 184.3 billion.
-
Comparing Q2 2024 to Q2 2025, it is evident that there has been a 22% increase in volume. This is a 49% increase in value.
-
Residential share: More than 75% of all transactions were residential properties
-
Commercial share: the rest were mostly stores and offices
This historic performance shows that Dubai is the busiest place in the UAE for real estate.
Off-Plan Property Sales in Dubai (Q2 2025)
Dubai’s off-plan market led the way in activity:
- There were 30,277 off-plan transactions recorded in the second quarter of 2025.
- Volume increased by 16% compared to last year
- Value increased by 31%, rising from AED 52.6B to AED 68.8B
Ready Property Sales in Dubai
The ready market also reached new heights:
- 22,975 transactions were completed, which is a 33% increase compared to last year.
- Transaction value: AED 115.5 billion, which is a 62% increase compared to Q2 2024.
More people are becoming homeowners as rental prices keep going up. As more high-quality, move-in-ready homes became available, many buyers find it attractive to buy instead of renewing their leases.
Communities such as Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Village Circle have consistently welcomed new residents
At the same time, upscale neighborhoods like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate saw a surge in high-value transactions.
Current Property Pricing Trends in Dubai
- Prices in premium and waterfront districts have stayed the same or gone up.
- Some secondary communities are starting to show more stable price movements, but there’s no widespread indication that property prices in Dubai are decreasing.
Dubai’s growth in transaction volume and value shows a strong confidence in the UAE’s real estate sector.
Average House / Property Prices in UAE (Q2 2025)
Average prices give us a better idea of how much people are paying right now and how “expensive” or “affordable” the market really is.
In the second quarter of 2025, average prices went up a lot in both Dubai and Abu Dhabi, especially in prime areas. The data suggests the following.
Dubai: Average Prices, Trends, and Benchmarks
- In the second quarter of 2025, the average price of a home in Dubai was about AED 1,633,944. This fits with reports that the average price and the price per square foot both reached new highs.
- The average price per square foot in the market was about AED 1,607, which is about 6.1% more than last year.
- Dubai property prices went up 3% over the quarter, reaching an average of AED 1,582/sq ft. This was on top of earlier growth.
- Apartments that sold for an average of AED 2,114,848 had an average built-up area of about 940 square feet, which comes out to about AED 1,987 per square foot. This shows that prices are going up in many areas.
So, in Dubai, property prices are higher than they have been in the past, especially in buildings that are in good locations or are of high quality.
Price Changes and Averages in Abu Dhabi
In many cases, Abu Dhabi’s prices are lower than Dubai’s. However, in the second quarter of 2025, there is a lot of growth, especially for villas and high-end developments.
- According to ValuStrat, the residential price index rose 8.1% year-on-year in Q2 2025. Villas saw a 10.1% annual gain. (ValuStrat)
- Abu Dhabi apartment prices averaged AED 10,979/m² (that is about AED 1,020/sq ft), while villa prices averaged AED 8,407/m² (≈ AED 781/sq ft) according to one detailed breakdown.
- The overall average home value in Abu Dhabi (residential) was ~ AED 10,226/m² (≈ AED 950/sq ft).
- In the second quarter, the villa segments did better. Most of the growth in value was in larger homes, which shows that people want more space and luxury.
- Growth in ready homes also pushed averages upward. In Q1 2025, the average ready home price in Abu Dhabi was ~ AED 1,146/sq ft, rising ~5.8% year over year.
To summarize:
Region / Segment Average Price per sq ft (or per unit) Notes & Context
Dubai (overall) ~ AED 1,607 / sq ft Broad average across many types.
Dubai (registered apartments) ~ AED 1,987 / sq ft For units ~940 sq ft average.
Dubai (residential average) ~ AED 1,633,944 per unit Reflects blended property types.
Abu Dhabi (apartments) ~ AED 10,979/m² (~AED 1,020/sq ft) Based on market reports.
Abu Dhabi (villas) ~ AED 8,407/m² (~AED 781/sq ft) For villa segment.
Average Prices by Unit Type in Dubai & Abu Dhabi (Q2 / Mid-2025)
Here’s a deeper look at average asking or market prices (sale or rent) by unit type.
Emirate Unit Type Typical Price / Rent Notes / Source
Abu Dhabi Studio (rental) ~ AED 63,000 / year In Abu Dhabi City, studio rents are ~ AED 63,000 annually. (Consultancy ME)
Abu Dhabi 1-Bedroom (rental) ~ AED 89,000 / year For apartments in Abu Dhabi, 1-bed units ~ AED 89,000.
Abu Dhabi 2-Bedroom (rental) ~ AED 125,000 / year In the same Abu Dhabi market, 2-beds average ~ AED 125,000.
Abu Dhabi 3-Bedroom (rental) ~ AED 180,000 / year For larger apartments, 3-bed units in Abu Dhabi city are around AED 180,000.
Abu Dhabi Apartment sale / price per sq ft ~ AED 10,979 / m² (≈ AED 1,020 / sq ft for apartments) ValuStrat / Knight Frank reports show apartment value ~ AED 10,979 per m². (Knight Frank )
Abu Dhabi Villa sale / value per sq ft ~ AED 8,407 / m² (≈ AED 781 / sq ft) For villas, average value reported is ~ AED 8,407 per m². (ValuStrat)
Dubai / UAE (Sale Market) Studio apartment (sale) ~ AED 700,000 Estimate studio sale prices in Dubai ~ AED 700,000.
Dubai / UAE (Sale Market) 2-Bedroom apartment (sale) ~ AED 2,377,000 For 2-bed units, average sale price ~ AED 2.377 million in Dubai.
Dubai / UAE (Sale Market) Average apartment price ~ AED 1,520,000 Average apartment price in Dubai ~ AED 1.52 million.
What This Data Means
- These averages mix rental and sale prices. Rental figures are useful to understand what someone pays annually; sale prices indicate what buyers expect to pay.
- These are city averages / prime areas. Specific districts, tower quality, view (sea, creek, highway), furnishing, and finishes can skew a unit well above or below these averages.
- Abu Dhabi shows more moderate pricing; its apartment values are generally lower than Dubai’s, especially in non-prime areas, but growth is solid.
Leave a Reply