Considering Real Estate Decisions in 2025: Dubai Trends for Home Seekers Today
Growth in Dubai's Residential Real Estate Market: Renting and Buying Thrive
The latest report by Betterhomes, released in July 2025, highlights a robust growth in Dubai's residential real estate market, with both renting and buying sectors experiencing significant momentum.
The report reveals a 20.5% month-on-month increase in residential property transactions, reaching 18,816 deals valued at AED 51.3 billion ($13.96 billion). Off-plan sales accounted for 65% of these transactions, a testament to growing buyer confidence in future developments.
The average price per square foot increased by 3.3% month-on-month to AED 1,893 ($516). Average sale prices stood at AED 1.99 million for apartments, AED 3.25 million for townhouses, and AED 9.7 million for villas. However, Betterhomes' own portfolio showed slightly higher apartment prices (AED 2.33 million) and lower villa prices (AED 6.1 million).
In the rental market, transactions increased by 3.4% month-on-month, with new leases making up 40% of all deals. The average annual rents are AED 72,000 for apartments, AED 172,000 for townhouses, and AED 255,000 for villas. Notably, communities like Al Khail Heights and Jumeirah saw respective rent increases of 1.5% and 4.2% for apartments and villas.
The report underlines two key factors influencing the decision to rent or buy in Dubai. Renting is attractive to residents prioritizing flexibility, lower upfront costs, and variety in location, supported by consistent rental market growth and new leases. On the other hand, buying is favored by investors and first-time buyers attracted to off-plan developments and long-term capital appreciation, encouraged by Dubai’s investor-friendly laws and global buyer interest.
With around 20,000 new units already delivered in 2025 and approximately 70,000 more expected by year-end, the supply is increasing to meet emerging demand from investors and end-users. The surge in luxury transactions in Q2 2025 highlights the rising global appeal among high-net-worth buyers.
In conclusion, the July 2025 data from Betterhomes indicates a balanced yet dynamic property market where both buying—especially off-plan—and renting remain strong choices influenced by price trends, supply growth, investor confidence, tenant demand, and individual lifestyle preferences in Dubai. The increase in new leases also suggests that Dubai continues to attract residents from around the world.
- The robust growth in Dubai's residential real estate market, as highlighted in the July 2025 report by Betterhomes, is not only observed in the buying sector but also in the renting market, with new leases constituting 40% of all deals.
- The thriving real estate market in Dubai, as evidenced by the recent Betterhomes report, has resulted in a surge in luxury transactions, particularly in the second quarter of 2025, indicating the rising global appeal among high-net-worth buyers.
- For those seeking flexibility, lower upfront costs, and variety in location, renting in Dubai remains an attractive option, supported by consistent rental market growth and new leases.
- On the other hand, investors and first-time buyers are drawn to buying in Dubai, with off-plan developments offering long-term capital appreciation and encouraged by Dubai’s investor-friendly laws and global buyer interest.
- The news of Dubai's residential real estate market, as presented in the Betterhomes report, reveals that the supply is increasing to meet emerging demand from investors and end-users, with around 20,000 new units already delivered in 2025 and approximately 70,000 more expected by year-end.
