Living in Dubai? Here’s how much property prices could rise in 2025
Dubai property prices have already surged 24.7% since last May, and reports say there’s more to come in 2025/ Image: Pexels

Dubai’s property prices have been on a strong upward trajectory, with a new report revealing how much prices are expected to rise further in 2025. After seeing significant growth in recent months, experts suggest that while the pace of price increases may slow, overall property values will continue to climb steadily throughout the year.

Strong Price Gains Led by Villas and Apartments

According to Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, Dubai’s property prices rose by 8% in the first five months of 2025. The monthly data shows a 1.6% increase in property prices for May 2025 alone, amounting to a total rise of 24.7% since May of the previous year. Villas have been the standout performers in the market. ValuStrat’s monthly analysis highlights the following key points:Villa Capital Values:

  • Monthly growth: 2%
  • Annual growth: 29.3%
  • Top villa communities by yearly growth:
    • Jumeirah Islands: 41.5%
    • Palm Jumeirah: 40.9%
    • Emirates Hills: 28.6%
    • The Meadows: 28.3%
  • Lowest growth among villas was in Mudon with 8.5%, which has remained stable for nine months in a row.

Villa Price Levels:

  • Freehold villas are now valued on average 66.4% above their previous peak in 2014.
  • Compared to post-pandemic levels, villa prices are 175.1% higher.

On the apartment front, ValuStrat reported a 1.1% month-on-month price increase and a 20% rise year-on-year. Areas seeing the highest apartment capital gains include:

  • The Greens: 25.5%
  • Dubailand Residence Complex: 24.1%
  • Palm Jumeirah: 23.8%
  • Dubai Silicon Oasis: 23.7%
  • Town Square: 23%

The lowest increases in apartment values were found in International City (12.3%) and Burj Khalifa (16.4%). Notably, the Burj Khalifa area recently surpassed its previous price peak from 2014. Overall, apartment prices are currently 71.2% above post-pandemic levels but remain 5.8% below the 2014 peak, according to ValuStrat’s analysts.

Outlook for the Rest of 2025: Moderation but Continued Growth

Looking ahead, ValuStrat predicts that Dubai property prices could rise by up to another 10% before the end of 2025. However, this growth is expected to be more moderate compared to the rapid increases seen in recent years. Real estate consultancy JLL provides additional insights into market dynamics, noting that the residential sector is moving towards a balance between supply and demand. JLL stated:“This shift will likely signal a moderation in price growth rates rather than a decrease in property values. As the year progresses, this trend is anticipated to increasingly influence sales prices, potentially leading to a more sustainable growth pattern in the market.” In the first quarter of 2025, JLL reported that sales prices continued climbing driven by strong demand:

  • Overall price increase: 16.5% year-on-year
  • Villas averaged Dh2,113 per square foot, up 18.9% annually
  • Apartments reached Dh1,725 per square foot, rising 16.1% year-on-year

Summary of Key Market Trends

  • Dubai property prices have risen sharply since May last year, with villas leading the charge.
  • Villa prices are significantly above pre-pandemic and previous peak levels.
  • Apartment prices are rising but remain slightly below their 2014 highs.
  • Market experts expect further price increases in 2025, but with more moderate growth.
  • The market is moving toward equilibrium, suggesting more stable and sustainable price growth ahead.





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