Dubai's luxury property prices have risen 400 per cent since the COVID-19 pandemic

The ValuStrat real estate report for the third quarter of 2025 shows that Dubai's real estate market continues to grow strongly despite signs of a slowdown around the world. Residential villa prices have tripled (300%) since the COVID-19 pandemic, while some upscale areas have seen increases of up to four times (400%).

According to the report, the ValuStrat Residential Price Index (VPI) increased by 21.3% year-on-year during the third quarter of 2025, compared to 23.9% in the previous quarter and 28.9% in the same period last year, reaching 230.6 points, based on a base of 100 points in the first quarter of 2021.

During the first nine months of the year, 24,000 new residential units were delivered, with delivery expected to exceed 27,000 units by the end of 2025. There are currently 158,854 apartments and 40,173 villas under construction and scheduled for delivery by 2029.

Villas Lead the Way

The report indicated that villas continue to outperform apartments by a significant margin, due to limited supply in the most sought-after locations. The villa price index rose to 307.5 points, representing an annual increase of 26.4% and a quarterly increase of 5.5%. Jumeirah Islands and Palm Jumeirah recorded the highest quarterly growth of 7.8%.

Residential apartments saw their value increase by 16.1% year-on-year and 3.3% quarter-on-quarter, reaching 180.4 points. The highest gains were recorded in Remraam and Dubai Silicon Oasis, with 4.9% gains.

Luxury Housing

The luxury residential sector, with prices above Dhs 2,000 per square foot, represents approximately 35% of Dubai's freehold residential market. Its index rose to 242.1 points in the third quarter, more than double its 2021 level. Luxury villas recorded a 29.2% year-on-year increase and a 5.9% quarter-on-quarter increase to reach 321.6 points, while luxury apartments rose by 16.2% year-on-year to reach 193.6 points.

Ready Home Sales

The third quarter recorded 12,451 ready home sales transactions, a 9.1% decrease from the previous quarter and a 3.4% decrease from last year. The average transaction value was Dhs 2.6 million. Off-plan sales reached 44,890 transactions, a 25.6% increase quarter-on-quarter and 36.2% year-on-year, with a total investment value exceeding Dhs 108 billion.

The report indicated that demand for commercial offices in Dubai remained strong, rising 27.5% year-on-year to 277.8 points, while office rents increased 4% during the third quarter.