According to current data, the average price per square foot of residential real estate in Dubai was Dh1,893 in July, up 3.3% from June.
Betterhomes, a real estate consultant, used Property Monitor’s market data and its own client insights to indicate increased transaction volumes and ongoing demand for both sales and leases. high secondary and off-plan sales activity, together with high tenant demand in strategic communities, were noted by the company.
Sales market
With a total value of Dh51.3 billion (+10.6%), the total number of sales transactions increased to 18,816—a 20.5 percent increase month over month. Off-plan sales remained the most common, accounting for 65% of transactions, up from 62% in June.
Jumeirah Village Circle, Business Bay, and Damac Riverside dominated the apartment market, while The Wilds, Grand Polo Club & Resort, and The Oasis were the best-performing villa communities in terms of transaction volume. In Dubai, flats sold for an average of Dh1.99 million, townhouses for Dh3.25 million, and villas for Dh9.7 million.
“The continued strength of Dubai’s off-plan sector shows enduring confidence in the city’s long-term growth,” said Chirine El Sebai, Off-Plan Sales Manager at Betterhomes. “We’re seeing demand from both seasoned investors and first-time buyers eager to secure properties before completion,” she added.
According to Betterhomes, buyer leads increased by 4% month over month in July, with nearly equal shares of sales occurring through cash (48%) and mortgage-backed (52%) purchases. With 62% of transactions coming from investors and 38% from end users, investors continued to hold a dominant position. In contrast to the DLD averages, average sale prices for flats were higher (Dh2.33 million) but lower for villas (Dh6.1 million), which reflected variations in buyer preferences and portfolio composition.
Data from Betterhomes indicated that Damac Hills 2, Dubai Land, and Dubai Investments Park were the best-performing villa communities. Dubai Marina, Motor City, and Dubai Land were the best-performing neighborhoods for apartments.
Leasing market
With 39,251 rental transactions recorded in the Dubai residential market in July—a 3.4% month-over-month increase—leasing activity also picked up steam. Forty percent of these agreements were new contracts, up from thirty-seven percent in June, suggesting that new renters are entering the market.
Al Khail Heights saw the largest increase in apartment rental prices, rising 1.5% month over month to an average of Dh67,500 annually. Jumeirah saw the largest increase in villa rental prices, rising 4.2% to Dh498,000 yearly. The average cost of renting an apartment in Dubai was Dh72,000, a townhouse was Dh172,000, and a villa was Dh255,000.
While Jumeirah Village Circle, Dubai Silicon Oasis, and Business Bay led the apartment market, Mirdif, Damac Hills 2, and Jumeirah were the most active villa leasing communities.
Tenant leads at Betterhomes increased by 10% month over month in July, indicating sustained demand for all of its rental properties. In the company’s transactions, the average leasing price for apartments was Dh141,000, townhouses were Dh190,000, and villas were Dh368,000.
The most active villa complexes were Arabian Ranches 2, Dubai Hills Estate, and Arabian Ranches 3, per Betterhomes data. The busiest apartment complexes were Business Bay, Downtown Dubai, and Dubai Marina.
Market outlook
Rising transaction volumes, robust off-plan demand, and robust leasing activity all work together to solidify Dubai’s standing as one of the world’s top real estate markets. Tenant demand is still growing strongly, and investor mood is also positive. Betterhomes believes that the upward trend in both pricing and activity will continue into the upcoming months.