Dubai’s property sector continued to attract investors in February 2025, with residential units, villas, and apartment prices recording notable annual gains. Data from ValuStrat showed the Price Index experiencing a slowdown in capital appreciation, marking its slowest pace in 20 months. Villas saw a 2% monthly uptick, easing from a previous high of 2.7%, while apartments recorded a 1.2% increase, following a 2% rise in January.
Despite the moderation in growth, the ValuStrat Price Index climbed to 207.5 points, reflecting a 1.6% monthly increase and a substantial 26.5% surge over the past year. Villa values reached 269.6 points, while apartments stood at 167 points, using January 2021 as the benchmark.
Villa Market Sees Impressive Yearly Gains
Villas across the city maintained upward momentum, rising by 2% in February and achieving a 30.8% increase compared to the previous year. Jumeirah Islands led the gains with a 42.3% jump, followed by Emirates Hills at 31.2% and The Meadows at 29.9%.
In contrast, Mudon recorded the lowest growth rate at 10.5%, remaining stable for the sixth consecutive month. Overall, freehold villa values now stand 57% above their last peak and 160% higher than post-pandemic levels.
Steady Climb in Apartment Prices
Apartment prices saw a 1.2% monthly rise, slightly softer than January’s 1.4%, with an annual increase of 22.2%. The strongest capital appreciation was observed in The Greens (28.9%), Palm Jumeirah (26.3%), Dubailand Residence Complex (25.7%), The Views (25.4%), and Town Square (25.1%).
On the lower end, International City and Dubai Sports City recorded 15.4% and 17.9% annual growth, respectively. While apartment prices remain 9% below their last peak, they have climbed 65% since the post-pandemic period.
Surge in Off-Plan Sales
Demand for off-plan properties grew significantly, with Oqood registrations increasing by 22.2% from the previous month and 59.5% year-on-year. These transactions accounted for 70.8% of all home sales in February. Meanwhile, secondary market transactions saw a 12.8% monthly increase and a 9.8% rise compared to last year.
Dubai recorded 31 high-value ready property sales exceeding AED 30 million, with transactions concentrated in sought-after locations such as Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One, and Jumeirah Golf Estates.
Jumeirah Village Circle, The Valley, Damac Island City, Emaar South, and Dubailand Residence Complex emerged as the most active areas for off-plan deals. Dubai Silicon Oasis set a new record for the highest number of off-plan homes sold in a single month, while Emirates Hills posted its highest volume of ready home sales.
Market Transactions Reach $13.91 Billion
Demand for real estate remains strong, with total property sales in February reaching $13.91 billion - a 39.91% increase compared to the same month in the previous year.
Data reveals that transactions totalled 16,099, reflecting a 35.5% year-on-year jump. Over the past five years, Dubai’s real estate market has witnessed a remarkable expansion, with sales value increasing by 449% - rising from AED 9.3 billion in 2020 to AED 36.5 billion in 2024.
Original article reference: Aviamost.ae
