Home sales in Dubai’s real estate market have surpassed the 50,000 mark in a quarter for the first time. Knight Frank data shows that 51,000 residential transactions were completed in the second quarter of 2025.
End users will be involved in a significant portion of these transactions, and by launching the “first home” campaign early this month, Dubai hopes to increase demand from them in the upcoming months. This clearly targets younger purchasers as well as those who are new to Dubai and is specifically targeted at those who intend to purchase their first house there.
In all, slightly over 94,000 residences were sold in Dubai during the first six months of 2025, producing Dh268 billion. Compared to the same period in 2024, that is 41% greater.
“With this momentum, 2025 is poised to surpass the Dh367 billion achieved in 2024,” says the Knight Frank update.
Dubai’s luxury homes
Another all-time high quarterly statistic for the Dubai real estate market was Dh9.5 billion, which was generated by sales of $10 million and more properties. In Q2 2025, there were 143 of these transactions.
For the first time since Q2 2023, there were 80 sales of apartments worth $10 million or more, compared to 63 sales of villas.
“The sustained growth in prices – now approaching five consecutive years since the current cycle began in November 2020 – is a clear sign of a more stable and predictable market environment,” said Faisal Durrani, Head of Research for MENA markets at Knight Frank.
“This is precisely the kind of consistency that global investors seek. Knight Frank’s forecasts for 2025 remain unchanged, with 8% growth expected in the mainstream market and 5% in the prime segment.”
Are Dubai property price gains slowing down?
The most recent data indicate that the price has not decreased considerably. According to Knight Frank’s data, home prices in the city rose 3.4% to Dh1,809 per square foot in Q2 of 2025.
‘Above the previous market top in 2014’ is a staggering 21.6%. The number of luxury off-plan projects that were introduced in recent weeks and have prices much above the market average is a major contributing factor to the most recent surge.
Additionally, a few agreements made on Sheikh Zayed Road or at Al Barari altered preexisting records.
Additionally, off-plan sales—which accounted for 70% of all house sales in the most recent period—continue to dominate the Dubai real estate market.
Buy a home in Dubai – and hold on
“The (Dubai property) market is increasingly being shaped by genuine buyers rather than speculators,” said Will McKintosh, Regional Partner – Head of Residential at Knight Frank.
It meant resale activity within 12 months of purchase ‘now at just 4%–5%, compared to 25% in 2008’. “This shift toward end-user activity is a positive indicator of the market’s growing maturity and long-term sustainability,” said McKintosh.
