Dubai’s property market reached another milestone in July 2025, with prices climbing 30.5% above the previous market high set in 2014. According to a recent report by Economy Middle East, average values rose to AED1,625 per square foot, supported by record mortgage activity and sustained sales momentum.
Key takeaways from Economy Middle East’s coverage of Dubai’s July performance:
- Apartment price growth slowed while villas and townhouses saw stronger momentum.
- Sales volumes reached 20,116 in July, up 21.3% month-on-month, with year-to-date transactions exceeding 119,000.
- Mortgage transactions set a new record at 4,891 loans, averaging AED1.8 million with a 73.7% loan-to-value ratio.
- Off-plan Oqood transactions rose 28.3% to 12,595, representing 62.6% of all deals.
Dubai’s property market has entered the second half of 2025 with striking resilience. The fact that prices now sit comfortably above their 2014 peak, paired with mortgage activity at record levels, highlights the strength of underlying demand and the depth of buyer confidence.
What’s remarkable is the shift in buyer behaviour. The market is no longer dominated by urgency-driven transactions where projects sell out in hours. Instead, buyers are taking more time to compare and assess. This is a natural sign of maturity – one that creates a healthier balance between supply and demand. Developers who succeed will be those that prioritise differentiation, delivery certainty, and genuine value over speed of sales.
The mortgage market also provides valuable signs. With nearly 4,900 loans issued in a single month and average loan sizes above AED 1.8 million, buyers are demonstrating both financial capacity and long-term commitment. Even with slightly tighter loan-to-value ratios, appetite for financing remains high, reinforcing the market’s solid capital base.
Off-plan activity, now accounting for almost two-thirds of transactions, continues to shape momentum. Yet, the rapid pace of new launches suggests that absorption will become more selective. This is a sign of balance returning and a market less defined by hype and more by considered investment choices.
This dynamic offers reassurance. Dubai remains a high-activity market with record volumes, but it is also moving toward a phase of steadier, more sustainable growth. A recalibration of urgency into value-driven decision-making strengthens the long-term investment case and reduces the risk of volatility.
In short, the record-setting numbers of July reflect progress. Dubai’s real estate market is not only expanding but evolving into a more resilient, investor-friendly environment.
Original article reference: Economy Middle East
