The Dubai Real Estate Market Q2 2025 report captures a city in motion. With nearly 69,200 transactions worth AED 237.8 billion, Dubai showed a balance between ready homes and off-plan launches. Compact apartments powered liquidity, while villas and branded residences anchored value, highlighting a market that thrives on both accessibility and aspiration.

Yet behind these citywide headlines lies a sharper lens. AIQYA’s SSOT scope, focused on freehold flats and sales-only, records 37,208 sales worth AED 76.3B in Q2 2025, ensuring consistency when comparing across micro-markets.

– The Pulse of a City in Motion

(AIQYA Insights – Real Value, Decoded)

Market Overview – Q2 2025

Dubai’s residential engine shifted up a gear in Q2. On our SSOT scope (freehold flats, sales-only), the city recorded 37,208 transfers totaling ~AED 76.3B. Price momentum edged higher median AED 1,700/sq.ft – even as the typical ticket eased slightly with a marginally smaller median unit size. The quarter’s liquidity remained off-plan led (≈73.5% of sales), reflecting investor appetite for phased entry and payment plans, while ready stock continued to anchor end-user moves.

What changed vs Q1 2025 (context)

• Transactions: +22.9% (30,264 → 37,208)
• Total value: +33.2% (AED 57.3B → AED 76.3B)
• Median ppsf: +2.0% (≈AED 1,667 → AED 1,700)
• Median ticket: –2.7% (≈AED 1.33M → AED 1.30M)
• Median size: –0.8% (≈811 → 804 sq.ft)
• Mix: Off-plan share rose (≈69.9% → ≈73.5%)

Scope note: Citywide headlines you may see elsewhere (e.g., 69,174 transactions; AED 237.78B total) are all-transactions counts (include mortgages, grants, commercial, land). AIQYA’s core metrics here are residential freehold flats, sales-only for like-to-like comparability with micro-markets.

This is a two-speed quarter: compact inventory kept price-per-foot buoyant, while a tilt toward slightly smaller homes nudged median ticket down. The value surge outpaced volume, signalling healthier cheque sizes at the upper bands even as the city digested a broad base of mid-ticket deals.

🧭 AIQYA Insight
For investors, off-plan remains the liquidity engine, a cleaner exit path, and staggered cash flows. For end-users, ready stock is the lifestyle ballast – fewer surprises, faster move-ins, and tangible quality checks. The widening gap between ppsf resilience and ticket moderation is the tell: buyers are trading a little space to stay inside preferred neighbourhoods and budgets.

Key Market Metrics – Q2 2025

Dubai’s residential market in Q2 2025 was both larger and richer than the quarter before. Volumes swelled by nearly a quarter, while value climbed by a third, a sign that demand is broadening across ticket sizes and communities. The quarter was led by off-plan absorption, yet ready sales continued to provide a stable undercurrent, anchoring end-user activity in established zones.

• Transactions surged +23% QoQ, crossing 37,000 sales.
• Total value expanded +33%, outpacing volumes.
• Median ppsf climbed to AED 1,700, reflecting resilience at the per-foot level.
• Median ticket dipped slightly as buyers trimmed unit size, not exposure.
• Off-plan pushed higher (≈74%), extending its role as the liquidity driver.

🧭 AIQYA Insight
Q2 illustrates a market where scale meets selectivity. Investors crowded into new launches for flexible payment plans, while end-users stayed active in the ready pool. The subtle divergence, higher ppsf but smaller tickets, signals a pragmatic recalibration: buyers are choosing less space to remain in preferred communities rather than exiting the ladder.

Price Trends & Market Interpretation – Q2 2025

Price momentum in Q2 was steady rather than spectacular. Median values moved just enough to signal resilience, even as the market absorbed higher volumes. Beneath the citywide average, the story split three ways: affordable belts that sustained liquidity, premium cores that nudged the medians up, and luxury enclaves that kept Dubai’s global shine intact.

📈 Quarter-on-Quarter Movement

• Median ppsf: AED 1,700 in Q2, up from AED 1,667 in Q1 (+2%).
• Median ticket: AED 1.30M, slightly down from AED 1.33M in Q1.
• Median size: 804 sq.ft., compared to 811 sq.ft. in Q1.

The city’s price profile is not about spikes but balance. Affordable corridors held ground, preserving transaction depth. Premium zones like Business Bay and Downtown lifted the averages, while luxury deals, fewer in number, provided an aspirational anchor. The dip in median ticket reflects smaller unit choices, not falling values.

🧭 AIQYA Insight
For buyers, the signal is clear: Dubai’s price ladder remains intact. Investors can still enter around AED 1,200–1,500 per sq.ft., families can climb into premium cores, and global capital keeps the luxury layer relevant. The modest rise in ppsf paired with smaller tickets shows pragmatism: households and investors are adjusting size expectations, not abandoning preferred addresses.

Primary vs Secondary Market Composition – Q2 2025

Dubai’s residential engine in Q2 leaned firmly on new launches. Off-plan continued to pull the majority of buyers, while ready sales provided stability in established communities. The balance between the two segments highlights Dubai’s dual market character: future towers for investors, lived-in homes for end-users.

• Off-plan led the quarter: nearly three out of four sales came from launches, underlining the pipeline’s pull.
• Ready sales held a quarter of activity, steady but outpaced, reflecting end-user selectivity in a market of abundant supply.
• Compared to Q1 2025 (≈70% off-plan / 30% ready), the tilt toward off-plan intensified.

🧭 AIQYA Insight
Dubai’s Q2 composition shows why the city remains a two-track market. Investors dominate liquidity via off-plan, lured by staged payments and resale potential, while ready stock acts as a lifestyle ballast, reassuring end-users who prioritize certainty. For strategy, this duality means investors should watch developer concentration risk, while end-users gain negotiating power in the ready space.

Configuration Distribution – What Are Buyers Choosing?

Compact living continues to be Dubai’s liquidity engine. Studios and 1BRs remain the dominant formats, together forming more than two-thirds of Q2’s residential transactions. Larger units, while fewer in number, provide stability by catering to families and lifestyle buyers in select corridors.

• 1 BR units lead the market, absorbing over 40% of all sales.
• Studios, at a quarter of activity, remain the workhorse for yield-driven investors.
• 2 BRs hold a balanced share, reflecting demand from couples and small families who want space without losing affordability.
• 3 BR and larger units are limited but important, representing the family-living side of Dubai’s demand.

🧭 AIQYA Insight
Dubai Q2 reinforces the two-speed market: liquidity is generated by compact formats (studios and 1BRs), while larger homes provide ballast for end-users and long-term occupiers. For investors, compact units remain the clearest entry path with high turnover potential. For families and upgraders, the relative scarcity of 3BR+ stock underscores its role as a stability anchor, not a volume driver.

Unit Size Trends & Market Signals – Q2 2025

Dubai’s Q2 size profile confirms a city designed around compact efficiency. The sweet spot sits between 40–70 sqm studios and 1BRs, which anchor liquidity. Yet, mid-sized 2BRs and larger apartments continue to provide the ballast of family living, ensuring the market isn’t just investor-led.

• Studios remain tight and efficient, with high per-foot pricing but approachable ticket sizes.
• 1BRs balance affordability with usability, making them the natural bridge between investor stock and starter homes.
• 2BRs show value depth, delivering family-appropriate space without pushing tickets above AED 3M.
• 3BRs carry higher tickets, showing that lifestyle buyers continue to absorb large units despite thinner yields.

🧭 AIQYA Insight
Unit sizing reveals how buyers are trading space for address. Compact formats at higher per-foot prices demonstrate that households prefer staying in central corridors, even if it means trimming square footage. Larger apartments, though fewer, remain the lifestyle ballast that keeps Dubai attractive to end-users, a reminder that the city is more than just an investor’s market.

Top Projects & Developer Activity – Who’s Leading Sales?

Q2’s leaderboard shows how Dubai’s engine runs on compact towers in emerging belts while its value is anchored by villas and branded residences. The mix underscores the city’s “barbell” market structure: liquidity at the base, cachet at the crest.

• Binghatti Elite led volumes with compact studios and 1BRs, reinforcing Production City as a yield corridor.
• Sobha Solis and Orbis anchored Motor City’s mid-market growth with premium branding at approachable tickets.
• Binghatti Skyrise showed how central corridors like Business Bay still attract strong absorption despite higher ppsf.
• Skyvue and Albero highlighted demand for upper-mid tickets in Bukadra and Al Khairan.
• Oasis Villas (Tierra and Ostra) skewed the value ledger upward, with AED 15M+ median tickets, fewer deals but massive contribution to AED volumes.
• ROVE Home Dubai Marina captured compact luxury, crossing AED 3,500/sq.ft. at ~AED 1.6M.

🧭 AIQYA Insight
The project map highlights Dubai’s barbell dynamic:

• Liquidity is driven by compact-unit towers in affordable and mid-market belts.
• Value is held by branded villas and waterfront residences at high-ticket levels.

For investors, this means the market offers two simultaneous entry points: the liquid compact lane for short-term yields and the prestige lane for capital storage. For end-users, brand trust (Sobha, Emaar, Binghatti) continues to be the deciding factor, particularly in the mid-market.

Affordability Snapshot – Where Buyers Are Spending

Dubai’s Q2 transactions reveal a market anchored in the mid-ticket bands. Nearly two-thirds of all sales clustered between AED 0.75M and AED 3M, proving that liquidity remains strongest where compact units and smaller family apartments intersect.

• 59% of Q2 sales sat in the AED 0.75M–3M band, underlining Dubai’s role as a mid-market hub.
• Sub-0.75M deals, though smaller in ticket size, formed one-fifth of activity, mostly compact investor units in JVC, Arjan, and Production City.
• The upper bands (3M+) together comprised 14% of sales, modest by count but outsized in AED value contribution.

🧭 AIQYA Insight
The affordability ladder in Dubai remains broad but tilted to the middle. For investors, the sweet spot lies in AED 0.75–1.5M 1BRs that combine liquidity with strong rental demand. For end-users, the AED 1.5–3M bracket offers a family foothold without straying into luxury territory. The top bands, while smaller in volume, preserve Dubai’s global narrative as a luxury magnet, a barbell structure where mid-market liquidity and luxury cachet coexist.

Buyer Profile & Demand Lens – Q2 2025

Behind the 37,000+ sales of Q2 lies a buyer base as diverse as Dubai itself. Investors, end-users, regional families, and local upgraders all approached the market with distinct motivations, yet together they created balance across compact, mid-market, and lifestyle-led homes.

Buyer Segments

🌍 Global Investors
European, Russian, and Chinese buyers treated Dubai as a hedge, safe currency, tax clarity, and strong rental demand. Their focus stayed on compact formats, especially studios and 1BRs under AED 1.5M in JVC, Arjan, and Dubailand.

🇮🇳 South Asian NRIs
Indian and Pakistani buyers remained the backbone of mid-market absorption. They typically targeted 1–2BR units priced AED 0.9M–1.8M, balancing yield with family usability.

🏠 Regional Families (GCC & MENA)
Saudi, Kuwaiti, and Egyptian families showed a preference for 3–4BR homes, either larger apartments in Business Bay or villas in Palm Jumeirah and Dubailand. Their lens was lifestyle-first, investment-second.

👩‍💼 Dubai-Based Upgraders
Residents already living in Dubai used Q2 launches as a chance to step up. They gravitated to branded developers like Sobha and Emaar, where delivery timelines and design reputation inspired confidence.

🧭 AIQYA Insight
Dubai’s Q2 demand lens underscores its dual market structure:

• Compact-unit investors sustain liquidity.
• Families and upgraders provide depth, anchoring long-term stability.

This coexistence ensures Dubai is not just an investor’s playground, but a city that households actively choose as home.

Rental Trends & Yield Outlook – Q2 2025

Dubai’s rental market remained a powerful stabilizer in Q2. Lease registrations showed both breadth in affordable corridors and resilience in premium zones. Compact apartments continued to anchor yields, while larger homes traded more on lifestyle stability.

A. Rental Market Snapshot

📝 Interpretation
Median annual rent held steady around AED 66k, proving Dubai’s relative affordability compared to global hubs. The citywide rent per foot of AED 6.3 reflects balanced demand across both compact and mid-sized formats.

B. Gross Yields by Configuration

SSOT Correction: Instead of using small contract samples, yields are recomputed on citywide medians (sales tickets × rents). Studios remain flagged as under-reported in the registry.

*Studios under-reported in the registry; figures are indicative based on observed rent-per-foot.

📝 Interpretation
Compact apartments (1–2BR) remain Dubai’s rental workhorses, delivering yields in the 6–8% range. Larger homes show thinner returns but attract end-users seeking stability, not ROI.

C. Community-Level Highlights

• Business Bay & Dubai Marina: sustained premium rents with large contract volumes.
• Al Barsha & Al Nahda: affordable absorption hubs for tenant churn.
• Burj Khalifa zone: global luxury outlier, where high annual rents reaffirm Dubai’s premium brand.

🧭 AIQYA Insight
Dubai’s rental backbone is compact efficiency. For investors, the sweet spot remains 1–2BR apartments in mid-market corridors, balancing approachable capital values with reliable rentability. For families, 3–4BR units serve as lifestyle anchors: lower yields on paper, but long-term occupancy stability. This dual engine of yield + lifestyle ensures the rental market keeps liquidity steady even as sales accelerate.

Configuration Spotlight – Project-Wise Breakdown (Q2 2025)

Q2’s absorption pattern shows a market built on compact liquidity but balanced by family footprints in select corridors. Below are the standouts by configuration, based on transaction counts, with median prices and tickets.

A. Top Projects – Studios

📝 Studios remain investor stock, with outer-belt Binghatti projects driving volume and Marina’s ROVE brand showing how location + branding can elevate compact units into the AED 1.5M range.

B. Top Projects – 1 BR

📝 1BRs were the liquidity leader of Q2, with Motor City dominating thanks to Sobha’s brand pull. Bukadra’s Skyvue pushed pricing higher, showing strong appetite for upper-mid 1BRs.

C. Top Projects – 2 BR

📝 2BRs bridged yield and livability, with Bukadra leading absorption. Al Khairan’s Albero stood out for pushing into the AED 3M+ ticket zone.

D. Top Projects – 3 BR

📝 3BR absorption reflected family-led demand, with Ranches and Mataar proving that end-users remain active in lifestyle-driven communities.

E. Top Projects – 3 BR+

📝 3BR+ deals were lifestyle-driven, with The Valley setting the tone for villa-scale living at AED 5M+ tickets. These aren’t yield plays but end-user anchors.

🧭 AIQYA Insight – Across Configurations

• Studios & 1BRs: Liquidity engine, driven by Binghatti (outer belts) and Sobha (Motor City).
• 2BRs: Mid-market bridge, large enough for families, still liquid enough for investors.
• 3BR & 3BR+: Lifestyle ballast, concentrated in villa and branded communities, proving Dubai’s dual appeal to both investors and families.

Risks & Watchpoints – Q2 2025

No quarter is without caution, and Dubai’s Q2 2025 data highlights a few signals that buyers and investors should weigh carefully.

⚠️ Oversupply Pressure
With more than 37,000 flat sales in just one quarter and a deep off-plan pipeline, absorption risk is real. Communities like JVC, Arjan, and Dubailand carry heavy inventories that could soften rents or yields if tenant demand lags.

⚠️ Delivery Timelines
While top-tier developers maintain strong reputations, smaller players with aggressive launches may struggle to hand over on schedule. Delays could trap capital and disrupt rental expectations.

⚠️ Yield Compression
Compact units currently deliver yields in the 6–8% range, but sharp price rises without matching rent growth could squeeze returns. Premium 1BR launches in Business Bay and Marina already show early signs of this pressure.

⚠️ Developer Concentration
Absorption is increasingly concentrated among a handful of names (Binghatti, Sobha, Danube). While this reinforces trust in brands, it also magnifies execution risk if timelines slip or quality falters.

🧭 AIQYA Insight
Q2’s momentum is undeniable, but investors should remember that Dubai’s strength is also its risk: abundant supply. For opportunistic buyers, the key is not just choosing the right location, but picking projects and developers with proven delivery credibility. For end-users, caution lies in ensuring that lifestyle promises align with infrastructure readiness. The right filters will still yield strong returns, but blind momentum could carry hidden costs.

Supply Snapshot – What’s in the Pipeline (Q2 2025)

If Q2 proved Dubai’s appetite, the supply machine confirmed it. The city’s pipeline remains vast, spanning affordable towers to luxury villas, ensuring choice but also raising questions on absorption capacity.

Off-Plan Launches & Active Corridors

• Jumeirah Village Circle (JVC): Multiple towers under construction, led by Binghatti and Samana, reaffirm its role as Dubai’s affordability anchor.
• Motor City: Sobha’s Solis and Orbis continue to add branded depth in the mid-market, with phased deliveries through 2027.
• Business Bay: Binghatti Skyrise and new compact towers kept the central corridor active for investors seeking address-led value.
• Dubai Marina & Waterfronts: Projects like ROVE Home Marina extended branded concepts into compact formats, while high-rise luxury kept the coastline aspirational.
• Villa Communities: The Valley (Al Yufrah 1) and Arabian Ranches III are adding family-focused homes, balancing Dubai’s apartment-heavy mix.

Supply Outlook

• Short-Term (2025–26): Heavy handovers expected in JVC, Arjan, Dubailand, and Business Bay, communities where compact inventory dominates.
• Medium-Term (2027+): Villa enclaves (Ranches, Valley, Tilal Al Ghaf) will expand end-user stock, while Downtown and Marina will see branded towers sustaining luxury absorption.

Dubai’s pipeline remains one of the largest globally, designed to match both investor liquidity and end-user demand. The short-term flood will test rental absorption, especially in compact corridors, while the medium-term builds family-oriented depth.

🧭 AIQYA Insight
For investors, the key lies in timing: compact stock may face short-term rent pressure but should recover on churn and yield. For end-users, the surge of villas and branded apartments offers choice at scale, but quality and delivery reliability should guide decision-making.

Plot Transactions & Investment Signals – Q2 2025

While unit sales dominate Dubai’s market pulse, residential land trades offer a forward signal of where tomorrow’s communities will rise. In H1 2025 (used here as a proxy for Q2 activity), Residential Freehold plots showed steady momentum in both inner-city villa belts and outer master-plan zones.

• Hadaeq Mohammed Bin Rashid: plot leader by count, reinforcing its position as a villa-plot hub near the city core.
• Al Yelayiss 1: largest by area, suggesting master-plan consolidations.
• Al Yufrah 1: larger median plots (~850 sqm), attractive for villa-scale development.
• Jabal Ali First & Al Thanyah Third: highlight Dubai’s expansion in outer zones where infrastructure is scaling up.

🧭 AIQYA Insight
Plot sales underline Dubai’s two-speed development dynamic:

• Small-to-mid plots in central areas anchor near-term villa growth.
• Large-scale land banks in outer belts position the city for future mega-communities.

⚖️ Data Note
This section is presented as context. Figures are based on DLD-registered land transactions (Jan–Jun 2025) filtered to Residential Freehold plots only. Other categories (Commercial, Industrial, Government) are excluded. Future editions will refine Q2-only cuts as structured land data stabilizes.

Final Observations & Buyer Takeaways – Q2 2025

Q2 2025 was Dubai’s quarter of scale with balance. On our SSOT scope (residential freehold flats, sales-only), the city delivered 37,200+ sales worth AED 76B, marking a 23% jump in volume and a 33% rise in value over Q1. Median prices edged higher on a per-foot basis, even as buyers trimmed unit sizes to stay within preferred budgets.

🔑 Key Observations

• Liquidity Anchors: Studios and 1BRs formed nearly 70% of sales, reaffirming their role as Dubai’s rental-yield engine.
• Off-plan Dominance: 74% of sales were in new launches, underscoring investor confidence in the pipeline.
• Ticket Realism: Median tickets dipped slightly (~AED 1.3M), showing buyers prefer less space over leaving the market.
• Mid-Market Stronghold: AED 0.75M–3M remained the affordability sweet spot, accounting for nearly 60% of sales.
• Lifestyle Ballast: Larger 3BR+ units, though few, anchored stability in villa and branded communities.
• Rental Stability: Compact formats continued to yield 6–8%, while larger units leaned more on lifestyle occupancy than ROI.

🧭 Buyer Takeaways

• Investors: Focus remains on 1–2BR apartments in mid-market corridors, liquid, rent-ready, and yield-stable.
• End-Users: Family-sized units in villa enclaves or branded mid-core launches offer stability, though due diligence on delivery timelines is vital.
• Strategic Lens: Dubai is best read as a two-speed market: compact units fuel liquidity and yield, while larger homes and villas sustain long-term end-user depth. The coexistence of these tracks is what makes Dubai both investible and livable.

Data Source Attribution – Q2 2025

This report is based on AIQYA Research analysis of Dubai Land Department (DLD) registered transactions and lease contracts for Q2 2025 (April–June).

Scope is restricted to Freehold residential Flats. Hotel Apartments, Hotel Rooms, and Commercial stock are excluded from core metrics as they behave differently in price and rental yield. Figures are based on DLD-registered transactions (and lease contracts, where used). Medians are computed from transaction-level data; minor gaps may exist due to naming inconsistencies or exclusions. This report is intended for insight and education, not financial advice.