Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
The increase in prices matches with quarterly sales volume striking a new record of 51,000 last quarter. Off-plan sales accounted for almost 70% of all purchases, which signals expanding capitalist trust in new Dubai property developments, claims Knight Frank. “The marketplace is significantly being formed by authentic customers rather than speculators, with resale activity within 12 months of acquisition now at just 4– 5%, contrasted to 25% in 2008,” includes Will McKintosh, regional partner and head of residential at Knight Frank MENA.
According to Durrani, push in the villa segment will likely stay growing. “Just 20% of the planned housing supply through to the end of 2029 will drop in the villa classification and with need continuing to be centred on stand-alone family homes, the delta in between villa and apartment price performance might well remain to widen,” he clarifies.
Over 94,000 residences in Dubai have currently been offered ever since the beginning of the year, putting the market securely on track to exceed the 169,000 deals registered for the whole of 2024. In general, total residential sales value clocked in at AED268 billion in 1H2025, 41% higher y-o-y.
Knight Frank has preserved its forecast for Dubai real estate price growth in 2025 at 8% for the mainstream industry and 5% for the prime section.
Meanwhile, the prime non commercial segment has actually even logged robust expansion. Knight Frank information presents that the average negotiated price throughout 10 key areas rose 16% over the past 12 months to hit AED3,850 psf. Additionally, sales of Dubai homes priced above US$ 10 million ($ 12.79 million) got to AED9.5 billion in 2Q2025, the highest quarterly number on record.
Within the Dubai property landscape, the villa segment has remained to lead the charge in price development, exceeding apartments. Villa prices rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment’s complete price buildup since 2014 to 49.3%.
The Dubai residential market continued to break records in 2Q2025, sustaining momentum that has propelled building worths in the emirate. According to research study by Knight Frank, Dubai housing prices expanded 3.4% q-o-q and 13.7% y-o-y to hit an average of AED1,809 psf ($ 629 psf) in 2Q2025, marking a brand-new all-time high. Residential prices have currently risen 21.6% over the previous market top recorded in 2014.
The Dubai real property market “has actually emerged as much more secure, even more transparent and is derived by solid basics,” observes McKintosh. He includes: “This shift is drawing in more long-term financiers and end-users and is aiding to reinforce Dubai’s setting as one of one of the most appealing residential markets around the world.”
” The sustained development in rates – now moving toward five successive years ever since the current cycle started in November 2020 – is a clear indication of a more stable and foreseeable market setting,” mentions Faisal Durrani, partner and head of research at Knight Frank Middle East and North Africa (MENA).
