Dubai’s property market is showing a strong upward trend, with new projections indicating continued price increases through 2025. According to a recent report, although the pace of these price increases may moderate, overall property values are expected to keep climbing steadily throughout the year.

A monthly analysis by ValuStrat revealed significant growth in both villa and apartment prices. For villas, there was a monthly growth of 2% and an impressive annual increase of 29.3%. The top villa communities leading this growth included Jumeirah Islands, which saw a 41.5% rise, and Palm Jumeirah, with a 40.9% increase. Meanwhile, the lowest growth was recorded in Mudon at 8.5%, remaining stable for the past nine months.

In terms of price levels, freehold villas are now valued on average 66.4% above their previous peak in 2014 and 175.1% higher than post-pandemic levels. On the apartment side, ValuStrat noted a month-on-month price increase of 1.1% and a year-on-year rise of 20%. Areas with the highest apartment capital gains included The Greens at 25.5% and Dubailand Residence Complex at 24.1%. However, some areas like International City and Burj Khalifa saw the lowest increases at 12.3% and 16.4%, respectively.

Looking ahead, ValuStrat forecasts that Dubai property prices could rise by up to another 10% before the end of 2025, although this growth is expected to be more moderate compared to the rapid increases witnessed in recent years. Real estate consultancy JLL added that the residential sector is moving towards a balance between supply and demand. They noted, “This shift will likely signal a moderation in price growth rates rather than a decrease in property values.”

In the first quarter of 2025, JLL reported a year-on-year overall price increase of 16.5%, with villas averaging Dh2,113 per square foot, a rise of 18.9%, and apartments reaching Dh1,725 per square foot, up 16.1%.

Overall, the trends indicate that while Dubai property prices have risen sharply since May of the previous year, with villas leading this increase, apartment prices are on the rise but still below their 2014 highs. Market experts anticipate further increases in 2025, but with a shift towards more stable and sustainable growth patterns.