Here’s an update on what happened in the Dubai real estate market in February 2025. We experienced moderated growth in February, reflecting a stabilizing trend from previous peaks. The overall residential market recorded a monthly growth of 1.6%, marking a year-on-year rise of 26.5% – the graph continues to slope upward but at a more moderate pace.

Apartments vs Villas

Villas

Villa prices grew by 2% month-on-month and achieved an annual growth rate of 30.8%. High-performing locations included the same usual suspects; Jumeirah Islands (42.3% annual growth), Palm Jumeirah (41.8%), Emirates Hills (31.2%), and The Meadows (29.9%). It should be noted that many residents in these established communities are partially or totally renovating their homes.

It is not uncommon to drive down any Meadows or Jumeirah Islands cluster and find 40-50% of the homes are being upgraded in some way or another and this continues to have a positive affect on property prices month on month. Mudon experienced the lowest growth at 10.5%, remaining stable over recent months.

Apartments

Apartments showed a monthly price increase of 1.2% slightly down from January’s 1.4%, and an annual appreciation of 22.2%. Leading communities were as usual; The Greens (28.9%), Palm Jumeirah (26.3%), Dubailand Residence Complex (25.7%), The Views (25.4%), and Town Square (25.1%). Lower-performing areas included International City (15.4%) and Dubai Sports City (17.9%).

Off-Plan vs Ready Homes

Off-Plan Homes

Off-plan sales accounted for 70.8% of all transactions, rising 22.2% monthly and 59.5% annually. The most transacted off-plan projects were in Jumeirah Village Circle (7.1%), The Valley (6.5%), and Damac Island City (5.5%). Dubai Silicon Oasis set a record in monthly off-plan sales.

Ready Homes

Ready home sales grew 12.8% monthly and 9.8% annually. Top locations for ready homes included Jumeirah Village Circle (9.9%), Business Bay (7.4%), and International City (5.6%). Emirates Hills recorded its highest-ever monthly sales volume for ready homes.

Infographic suggestion: visually highlight the transaction volume and percentage share between off-plan and ready home sales.

Top Developers

Major developers dominated the sales charts in terms of market share;

Top Locations

Here are the top locations where sales were done in February 2025;

Off-Plan Locations

• Jumeirah Village Circle
• The Valley
• Damac Island City
• Emaar South
• Dubailand Residence Complex

Ready Homes Locations

• Jumeirah Village Circle
• Business Bay
• International City
• Dubai Marina
• Downtown Dubai

Annual and Monthly Percentage Change Overview

• Residential Market: Monthly +1.6%, Annually +26.5%
• Apartments: Monthly +1.2%, Annually +22.2%
• Villas: Monthly +2%, Annually +30.8%

This moderate growth suggests a stable but still buoyant market, ideal for informed, strategic investments and selling opportunities.

Capital Gains Analysis

Apartments

Analysis of the apartment capital gains line graph indicates strong cumulative gains, notably in communities like Palm Jumeirah (127.7%), The Greens (95.3%), and Jumeirah Beach Residence (80.2%). Such sustained appreciation underscores robust investment potential in well-located apartment communities.

Villas

Villa capital gains analysis shows significant long-term appreciation, with top performers like Jumeirah Islands (244.2%) and Palm Jumeirah (212.6%) seeing the highest growth since the market trough. This emphasizes the premium demand and long-term resilience of Dubai’s luxury villa market.

Conclusion

Compared to December 2024 and January 2025, February 2025 displayed a deceleration in monthly price increases, suggesting a stabilization phase in Dubai’s real estate market. While transaction volumes, particularly for off-plan homes, continued robust growth, price appreciation moderated, signaling a maturing market. This presents a balanced opportunity for buyers and investors aiming for sustainable growth, and a need for realistic pricing expectations among sellers. This is the time to be ready with your cheque books to pounce on attractive deals in the fastest growing real estate market on the planet. As always, keep checking Viewit for the latest news on Dubai real estate!