As investors, end users, and tenants continued to drive demand for flats, villas, and townhouses, Dubai’s residential real estate market once again shown its durability in August, navigating the seasonal slowdown with assurance.
Betterhomes data shows that although activity was lower on a monthly basis, it was still significantly higher than it was the previous year, solidifying the city’s standing as one of the most alluring real estate destinations in the world.
Betterhomes reports that 17,710 transactions were made in August, a 5.9% decrease from July. The entire deal value was Dh42 billion, which represents a monthly decrease of 18.6%. However, the picture was better year over year, with both transaction volumes and values increasing by 10% when compared to August 2024. Additionally, prices remained stable, with the average sales price per square foot increasing by 2.1% to Dh1,932.
Developers including Binghatti, Emaar, and Sobha Group led sales of off-plan developments, which accounted for 73% of all transactions. Apartments continued to be the most popular category, accounting for almost half of all purchases. With four-bedroom apartments making up 46.3% of sales, purchasers in the villa and townhouse category clearly preferred family-sized residences.
In August, Betterhomes also reported an 11% increase in buyer leads, with investors accounting for 59% of buyer profiles and end users for the remaining 41%. With 58% of purchases being mortgage-backed, financing trends indicate that the lending climate is maturing.
“August reminded us that confidence in Dubai’s property market runs deep. The 10 per cent year-on-year growth in transaction value indicates that Dubai remains a magnet for both investors and families. Even as sales activity eased slightly, prices still rose to Dh1,932 per square foot. At Betterhomes, we saw an 11 per cent increase in buyer enquiries, a clear signal that market confidence endures,” said Cristopher Cina, director of sales at Betterhomes.
The leasing industry was doing just as well. In August, there were 41,504 rental agreements, a 5.7% increase over July. With new contracts increasing to 18,186, or 44% of activity, from 40% in July, fresh leases are starting to stand out. The remaining 56% of renewals indicate that tenants are opting to remain in their current residences as well as move into new ones.
The villa market in Jumeirah experienced the most increase in rental prices, with average yearly rents jumping 4.2% to Dh539,000, while apartments in Mirdif saw the biggest increase, rising 5.5% to Dh88,000. Apartments accounted for almost half of the demand, with townhouses coming in second at 32%, according to Betterhomes, which reported a 38% rise in renter inquiries during the month. With one-check and four-check choices still being the most popular (30 and 32%, respectively), payment flexibility is still a key component.
“August was a month of fresh starts. Nearly half of all leasing activity came from new contracts; it’s clear that many people are choosing to make this city their home. Tenant leads at Betterhomes rose 38 per cent, showing that demand is not only resilient but expanding, positioning Dubai as one of the world’s most competitive rental markets,” said Rupert Simmonds, director of leasing at Betterhomes.
August’s most sought-after areas provide as more evidence of persistent tenant and buyer preferences. The most popular villa communities were Arabian Ranches, Dubai Hills Estate, and Jumeirah Golf Estates, while the most popular apartment complexes were Dubai Marina, Business Bay, and Jumeirah Village Circle.
These patterns align with broader market indicators. According to data from the Dubai Land Department, 18,715 transactions totaling more than Dh51 billion in property sales occurred in August, a rise of 8.7% annually. While villa sales weakened, apartment sales led the way, increasing by about 30% from August 2024. According to market analysts like CBRE and ValuStrat, Dubai’s average residential prices are currently rising at double-digit rates every year, and its rental yields are among the highest in the world.
Experts in the real estate market believe that August’s results thus confirmed a straightforward fact: Dubai is still a place of opportunity, stability, and growth, supported by growing demand for rentals, foreign investor interest, and a mature financing environment.
Despite cautions about a possible price fall in the coming year as supply increases, they said the prognosis is still positive. Before the end of 2025, developers are anticipated to provide about 70,000 units. However, steady population growth—Dubai’s population just surpassed four million—as well as international investment inflows are anticipated to maintain strong demand.