Living in Dubai? New report reveals how far property prices will rise in 2025
Dubai property prices increased 8 per cent in the first five months of this year, said Haider Tuaima, managing director and head of real estate research at ValuStrat.
However, prices will see a moderation in growth rather than a decrease in value over the coming months in 2025.
The property prices in the emirate saw a 1.6 per cent monthly increase and a 24.7 per cent rise since May last year, led by villas, said the real estate consultancy in its monthly analysis of the emirate's property market.
The monthly report showed that villa capital values grew 2 per cent month-on-month, with an annual increase of 29.3 per cent.
The highest growth in the villa segment was led by Jumeirah Islands (41.5 per cent), followed by Palm Jumeirah (40.9 per cent), Emirates Hills (28.6 per cent), and The Meadows (28.3 per cent). Meanwhile, the lowest gains were recorded in Mudon (8.5 per cent), which has remained relatively stable for the ninth consecutive month.
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It added that Dubai's freehold villas are, on average, valued 66.4 per cent above the previous market peak in 2014 and 175.1 per cent higher than post-pandemic levels.
Apartment prices rose by 1.1 per cent month-on-month, recording an annual growth of 20%. The highest yearly capital gains were seen in The Greens (25.5 per cent), Dubailand Residence Complex (24.1 per cent), Palm Jumeirah (23.8 per cent), Dubai Silicon Oasis (23.7 per cent), and Town Square (23 per cent).
In contrast, the lowest capital value increases were recorded in International City (12.3 per cent) and the Burj Khalifa (16.4 per cent), which has recently surpassed its previous price peaks of 2014.
Apartment valuations are, on average, 71.2 per cent above post-pandemic levels, but 5.8 per cent below the previous market peak during 2014, said ValuStrat analysts in the monthly report.
As for the remainder of the year, the company predicted that property prices in Dubai are likely to increase by up to another 10 per cent.
Meanwhile, real estate consultancy JLL said the residential market is expected to adjust as supply and demand approach equilibrium.
'This shift will likely signal a moderation in price growth rates rather than a decrease in property values. As the year progresses, this trend is anticipated to increasingly influence sales prices, potentially leading to a more sustainable growth pattern in the market,' it said.
In the first quarter of 2025, JLL said, sales prices continued to climb on the back of strong residential demand, resulting in a 16.5 per cent annual increase in overall prices. Villas led the market, transacting at an average of Dh2,113 per square foot, an 18.9 per cent year-on-year increase. Apartment sales prices also gained momentum, reaching Dh1,725 per sqft, up 16.1 per cent annually.
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