Dubai Real Estate Soars: July 2025 Performance Unveiled Off-Plan Properties Dominance

Dubai’s real estate market reached spectacular heights in July 2025, with total property transaction value soaring to AED 49.67 billion across 18,191 deals, a 12.1% rise month‑on‑month and a 24.8% year‑on‑year increase.  This performance underscored robust confidence from both investors and end‑users as the emirate powered into the second half of the year. 

Notably, off‑plan properties dominated the activity, accounting for over 74% of all transactions, reflecting the growing appetite for new developments supported by flexible payment plans and attractive long‑term investment potential. 

July’s surge also builds on Dubai’s record‑breaking first half of 2025, cementing its position as one of the most dynamic property markets globally and setting the stage for an equally strong close to the year.

Dubai Real Estate July 2025: Off‑Plan Segment Takes the Lead

One of the most compelling aspects was how off‑plan transactions dominated activity, accounting for 74.26% of the total July volume. This milestone highlights the rising preference for project launches offering flexible payment plans, early access, and master‑planned community amenities.

Breaking Down the Numbers

Context from Q1 and Q2 2025

Dubai did not arrive here overnight. The quarter half (Q1) of 2025 saw AED 431 billion in total real estate transactions, up around 25% on H1 2024, with 1.3 million deals recorded across sales, transfers, and rental contracts.  Q2 alone delivered AED 144.7 billion, marking a 39.7% year‑on‑year surge, led by off‑plan sales, which accounted for AED 98.4 billion within the quarter.

In Q1, transactions totalled AED 142.7 billion, a 30.3% rise year‑on‑year, with plot sales skyrocketing by nearly 194% to AED 35.5 billion.  This staged momentum illustrates how demand progressively shifted into mid‑2025, fueled by both residential and commercial interest.

Why Off‑Plan Leads the Charge in July 2025?

Several dynamics underpin the dominance of off‑plan properties:

• Flexible payment plans and low‑down‑payment models, as offered by developers and firms such as Danube Properties, have expanded access for middle‑income buyers.

• Many developers now mirror buyer maturity by delivering integrated developments emphasizing infrastructure, schools, transit access, parks, hospitality, and projected yield.

• Emerging corridors beyond established hotspots—such as Dubai Hills Estate, Meydan, JVC—are attracting newcomers drawn by value and long‑term community living.

• The broader investment landscape remains favorable: Dubai’s lack of personal income tax, visa flexibility, global connectivity, and quality of life continue to attract both expatriates and international capital.

Market Preferences and Price Trends

Reports confirm that off‑plan average pricing remains competitive. In July, off‑plan apartments averaged around AED 2,090 per Sq. Ft, notably higher than ready homes at AED 1,495/Sq. Ft. Meanwhile, off‑plan villas/townhouses averaged AED 1,353/Sq. Ft compared to AED 1,666 in the resale market.

Off‑plan apartments have surged quarter‑on‑quarter. In Q2 2025, off‑plan activity rose by 43%, and apartments alone contributed 80% of total off‑plan sales, supported by developer launches and liquidity of the payment structure.

Top Areas with Highest Transactional Values

According to Dubai Land Depatment Real Estate data, in July 2025, Dubai’s property market was dominated by key hotspots, with Business Bay, Jumeirah Second, Bukadra, Jumeirah Village Circle, and Dubai Investment Park Second standing out as the most active areas. These locations continued to attract significant interest, reinforcing their positions as prime destinations in the city’s thriving real estate landscape.

Buyers’ Focus is Maturing

Today’s buyers evaluate more than just speculation potential. Market commentary from Springfield Properties CEO Farooq Syed indicates that buyers now emphasize:

• Delivery timelines

• Quality of finish

• Transparency around costs and secondary market liquidity

• Community cohesion and long‑term livability 

That shift toward intentional, long‑term ownership is proving resilient even amidst investor speculation waves.

Market Outlook and Supply Risks

Despite this strength, not everyone expects continuous gains. Fitch Ratings warned of a potential price correction of up to 15% in late 2025 into 2026 due to an anticipated surge in supply, 210,000 housing units expected for delivery over two years, double that of the prior period.

Nonetheless, Riyadh‑based assessments and industry watchers note that prime corridors like Palm Jumeirah and Downtown Dubai will likely remain buoyed by scarcity and prestige appeal.

Underlying Structural Growth Drivers

Dubai’s broader demographic and economic fundamentals provide stability behind volatility risks:

• The population approached 3.98 million by mid‑2025, up roughly 5.5% in one year, paving the way for sustained housing and rental demand.

• Authorities rolled out plans to deliver up to 73,000 new homes in 2025 alone, with a goal of 300,000 units by the end of 2028, a response to population growth, diversified demand, and economic expansion ambitions.

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• Financial regulation strengthened developer discipline. Banks have trimmed real‑estate loan exposure from 20% to nearly 14% of gross loans over recent years, lessening system risk as prices stabilize.

What Lies Ahead For Dubai Real Estate Market? 

As Dubai enters H3 2025, several themes will shape performance:

• Supply versus demand calibration - how quickly new homes are delivered versus population growth and buyer absorption.

• Pricing dynamics in off‑plan markets, especially in emerging versus established corridors.

• Investor sentiment shifts from spec-driven to long‑term play, driven by rising global financial uncertainty.

• Regulatory policy and financing terms continue to shape accessibility and investor risk appetite.

• Infrastructure delivery, public transport extensions, and community build-out—all critical to long‑term appeal in newly launched zones.

Conclusion: A Turning Point Month

July 2025 stands as a milestone moment for Dubai’s real estate landscape. AED 49.67 billion in transactions, driven by 74% off‑plan activity, reveals a market in full motion, fueled by developer innovation, informed buyers, and expanding supply pipelines. Year‑on‑year and month‑on‑month gains signal momentum, but equally, rising supply and potential mid‑next‑year price corrections call for measured optimism.

For property watchers, investors, and end‑users alike, the message is clear: Dubai real estate is evolving. Off‑plan projects are no longer niche; they are the heartbeat of a market transitioning from rapid acceleration to mature expansion. As H2 2025 unfolds, resilience will hinge on delivery, location, transparency, and a fine‑tuned balance between supply and sustainable demand.

Frequently Asked Questions (FAQs)

1. How much was the total value of Dubai real estate transactions in July 2025?

2. 
   

The total value reached AED 49.67 billion across 18,191 deals, reflecting a 12.1% increase from June 2025 and a 24.8% rise compared to July 2024.

2. What percentage of transactions in July 2025 were off‑plan properties?

3. 
   

Off‑plan properties dominated the market, accounting for 74.26% of all transactions, indicating strong buyer interest in new developments and flexible payment options.

3. Why are off‑plan properties leading Dubai’s market growth?

4. 
   

Off‑plan properties are popular due to flexible payment plans, promising capital appreciation, modern community developments, and visa‑linked investment opportunities for foreign buyers.

4. 
   

5. How does July 2025 compare to Dubai’s overall performance in 2025?

6. 
   

July builds on Dubai’s record‑breaking H1 2025, where transactions reached AED 431 billion, positioning the market for a strong year‑end performance.

5.  Are Dubai real estate prices expected to rise or fall?

6. 
   

While the market remains strong, analysts, including Fitch Ratings, warn of a potential 10‑15% price correction by late 2025 to 2026 due to a large upcoming supply of new units.