Dubai’s residential property market demonstrated steady fundamentals despite seasonal slowdowns in August, a report said.

 

Both investors and end-users continue to drive growth, while prices and rental trends remain resilient, said Betterhomes’ insights on Dubai’s residential property market for August 2025.

 

Both sales and leasing trends highlight how demand remains strong across apartments, villas, and townhouses, with both investors and end-users fueling the growth, it said.

 

Sales activity eased slightly in August, with 17,710 transactions, down 5.9% from July. The total value of deals reached AED42 billion ($11.44 billion), reflecting an 18.6% monthly dip. Yet, when compared to August 2024, both transaction volumes and values were up by a solid 10%, highlighting the market’s steady year-on-year strength. Despite the seasonal slowdown, prices held firm, with the average sales price per square foot edging up 2.1% to AED1,932. This resilience shows that while monthly figures can fluctuate, the broader trend for Dubai’s property market remains firmly upward, the report said.

 

Demand favours off-plan

Demand continues to favour off-plan developments, which accounted for 73% of all transactions, emphasising buyer appetite for future projects and long-term value. Notably, Binghatti, EMAAR, and Sobha Group led the market in total off-plan sales value.

 

Apartments remained the preferred choice among buyers, with one-bedroom units representing nearly half of all transactions (46.6%). In contrast, interest in the larger layouts of villas and townhouses was higher, with 46.3% of villa buyers opting for four-bedroom homes, indicating a clear preference for family-sized living.

 

Betterhomes recorded an 11% rise in buyer leads, with apartments accounting for most enquiries. Investors made up the majority of buyer profiles at 59%, with end users accounting for 41%, demonstrating that Dubai’s market continues to attract global capital.

 

Alongside buyer preferences, financing trends underscore a maturing and accessible lending environment. Mortgage-backed purchases outweighed cash, with financing comprising 58% of activity.

 

“August reminded us that confidence in Dubai’s property market runs deep. The 10% year-on-year growth in transaction value indicates that Dubai remains a magnet for both investors and families. Even as sales activity eased slightly, prices still rose to AED 1,932 per square foot. At Betterhomes, we saw an 11% increase in buyer enquiries, a clear signal that market confidence endures,” said Cristopher Cina, Director of Sales at Betterhomes.

 

Strong month for new contracts

Dubai’s rental market maintained its pace, with transaction volumes hitting 41,504, a 5.7% month-on-month lift. 

 

The momentum was powered by more new move-ins, with new contracts rising to 18,186 and accounting for 44% of activity, up from 40% in July. Renewals eased to 23,196 (56%), signalling a market where fresh leases are growing even as many tenants remain in their existing accommodation. On a yearly basis, volumes were down 10%, an acceptable adjustment given the natural variations in the renewal cycle.

 

Rental growth stood out in Jumeirah’s villa market, where average annual rents climbed 4.2% to AED539,000. In the apartment segment, Mirdif saw the highest increase, rising 5.5% to AED88,000.

 

August brought a 38% rise in tenant enquiries at Betterhomes, indicating a strong uptick in leasing demand month-on-month. Apartments topped the list at 47%, followed by townhouses at 32%. Most tenants opted for flexible rental payment options, with one-cheque and four-cheque payments remaining the most common at 30% and 32% respectively.

 

“August was a month of fresh starts. Nearly half of all leasing activity came from new contracts; it’s clear that many people are choosing to make this city their home. Tenant leads at Betterhomes rose 38%, showing that demand is not only resilient but expanding, positioning Dubai as one of the world’s most competitive rental markets,” said Rupert Simmonds, Director of Leasing at Betterhomes.

 

Top communities in August

The most sought-after areas for buyers and tenants revealed the continued popularity of established and well-connected neighbourhoods:

* Apartments: Dubai Marina, Business Bay, Jumeirah Village Circle

* Villas: Arabian Ranches, Dubai Hills Estate, Jumeirah Golf Estates. -TradeArabia News Service