Market Insights: June 2025

Dubai remains in expansion mode - price growth, developer activity, and long-term demand all trending upward

*Please note: This graph has been simplified to display only data for the month of June each year.

Dubai property prices rose 1.71% in June, pushing the average to AED 1,609 per sq.ft. - a new market high and 30.5% above the 2014 peak. The market has now delivered 52 consecutive months of annual growth, with price momentum still intact.

While monthly transactions dipped to 16,584, activity remains elevated, marking the strongest June on record and outperforming 2024 by 15.8%. Off-plan sales dominated at 69.6% market share, driven by major launches from DAMAC, Emaar, and Sobha.

Mortgage volumes held above the 12-month average at 4,478 loans, although the average LTV dropped to 73.5%, reflecting stricter lending conditions. Resale activity eased slightly, with 31.9% of market share.

As the second half of 2025 begins, Dubai remains in expansion - but buyer selectivity is growing. Product quality, pricing discipline, and timing will define who leads in the months ahead.

June saw continued momentum in the AED 1M-1.5M bracket, which posted the fastest growth at +4.0% month-on-month. This reflects rising demand for mid-market properties - particularly in new master-planned communities with competitive launch pricing.

The AED 1.5M-2M range also gained ground, up 0.8%, while higher-end brackets above AED 3M saw a modest dip in share, suggesting buyers are balancing value with long-term upside. Notably, flagship launches in areas like Dubailand, Al Furjan, and Meydan attracted strong uptake across the AED 1M-2M range.

The AED 2M-3M segment recorded the sharpest pullback, down 1.5%, marking a short-term rebalancing as inventory increases and buyers consider more affordable options. This isn’t a sign of weakness - rather, it reflects greater choice and measured decision-making among investors.

Overall, the market remains tier-diverse, with momentum clearly shifting toward product that blends affordability with growth potential - a signal that Dubai’s maturing buyer base is becoming more strategic.

Compared to May, June saw a decisive shift in buyer focus toward the AED 1M-3M range, which expanded to 51.3% of all transactions, up 3.2 percentage points. This reflects rising appetite for mid-range assets that offer both scale and capital appreciation - especially in off-plan segments.

The sub-AED 1M bracket fell to 24.9%, down 1.1%, as buyers moved upmarket in search of better locations, larger layouts, or community-level amenities. At the same time, higher-value segments above AED 3M softened slightly, dropping to 23.8%, suggesting a temporary cooling in premium-led activity.

The market is clearly recalibrating. Investor demand remains strong, but value perception is shifting - with greater attention now placed on liveability, future yields, and smart entry points.

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