Dubai’s Residential Price Growth Slows as Market Matures
Dubai’s residential property prices recorded their slowest growth in 20 months this February, as increasing deliveries balanced the market, according to data released on Monday.
The ValuStrat Price Index (VPI) reflected this trend, with monthly villa prices rising 2 per cent, down from a peak of 2.7 per cent, while apartment values grew by 1.2 per cent, a drop from the previous high of 2 per cent.
The VPI, which tracks a sample of properties covering over 90 per cent of Dubai’s residential and commercial markets, reached 207.5 points in February 2025. This marked a 1.6 per cent monthly increase and a 26.5 per cent annual rise. Villa valuations climbed to 269.6 points, while apartments stood at 167 points, using a base of 100 points from January 2021.
Villa prices rose 2 per cent month-on-month, reflecting a 30.8 per cent annual increase. The highest yearly gains were seen in Jumeirah Islands (42.3 per cent), Palm Jumeirah (41.8 per cent), Emirates Hills (31.2 per cent), and The Meadows (29.9 per cent). In contrast, Mudon recorded the lowest growth (10.5 per cent), maintaining stability for the sixth straight month. On average, Dubai’s freehold villas are now valued 57 per cent higher than the previous market peak and 160 per cent above post-pandemic levels.
Apartment prices rose by 1.2 per cent in February, down from January’s 1.4 per cent, with annual growth reaching 22.2 per cent. The highest yearly appreciation was recorded in The Greens (28.9 per cent), Palm Jumeirah (26.3 per cent), Dubailand Residence Complex (25.7 per cent), The Views (25.4 per cent), and Town Square (25.1 per cent). Meanwhile, International City (15.4 per cent) and Dubai Sports City (17.9 per cent) saw the lowest price increases. Apartment values remain 9 per cent below their previous peak but are 65 per cent higher than post-pandemic levels.
Off-Plan vs Ready Homes
Registrations for off-plan homes (Oqood contracts) surged by 22.2 per cent monthly and 59.5 per cent annually, accounting for 70.8 per cent of all home sales in February. Ready secondary-home transactions also grew, rising 12.8 per cent month-on-month and 9.8 per cent year-on-year.
There were 31 transactions for ready properties priced above Dh30 million, located in Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One, and Jumeirah Golf Estates.
Emaar led the overall developer sales in February with 17.5 per cent, followed by Damac (12.7 per cent), Sobha (4.8 per cent), Nakheel (4.3 per cent), Dubai Properties (4.3 per cent), and Samana (2.6 per cent).
The most traded off-plan locations included Jumeirah Village Circle (7.1 per cent), The Valley (6.5 per cent), Damac Island City (5.5 per cent), Emaar South (5 per cent), and Dubailand Residence Complex (4.9 per cent). Dubai Silicon Oasis recorded its highest-ever number of off-plan home transactions in a single month.
For ready homes, the highest sales were seen in Jumeirah Village Circle (9.9 per cent), Business Bay (7.4 per cent), International City (5.6 per cent), Dubai Marina (5.4 per cent), Downtown Dubai (5.2 per cent), and Jumeirah Lake Towers (3.3 per cent). Emirates Hills set a new individual record for the highest number of ready home sales in a single month.
