By Evereth Woodruff 
According to a new market performance report released by Cavendish Maxwell, residential transactions reached 91,900 in H1, up 23 per cent year-on-year, as demand remained strong across both off-plan and ready property segments.
Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell, said: “The first six months of the year has highlighted a strong, thriving Dubai real estate market, with robust buyer demand and rising sales. At the same time, we are seeing early signs of moderation in rental price growth – good news for a city focused on attracting new talent and expanding its population.”
Strong demand fuels Dubai residential growth
Off-plan sales accounted for over 70 per cent of transactions, though demand for ready homes is increasing, with 27,400 deals recorded, a 10 per cent year-on-year rise. Off-plan apartment market share fell 5.6 per cent to 76.7 per cent in H1, while villa and townhouse sales rose, driven by demand for larger living spaces and garden access.
Four-bedroom homes led off-plan villa and townhouse sales, making up 55 per cent of transactions. In the ready homes segment, three- and four-bedroom units were most in demand, though five-bedroom sales also grew, capturing a 13 per cent share.
Emaar, DAMAC Properties and Sobha Group remained the top developers by sales volume.
Beyond entered the top 10 for the first time, supported by strong performance in Dubai Maritime City. Other top developers included Binghatti, Danube, Samana, Nakheel, Azizi and Wasl.
Jumeirah Village Circle led in apartment sales, with more than 8,000 transactions. DAMAC Islands ranked first for off-plan villa and townhouse sales, while DAMAC Hills 2 topped the list for ready villa and townhouse transactions.
Luxury sales surged, with over 1,400 properties priced above AED 20 million sold in H1, up 82 per cent year-on-year. Transactions for ultra-luxury properties valued above AED 50 million rose 33 per cent to 140 deals.
“Dubai Land Department’s recently launched First-Time Home Buyer Programme will further boost the residential market, particularly among end-users,” Arthur said. “In time, the scheme could also help diversify the buyer base, promote long-term residency and contribute to a more balanced, inclusive housing market.”
Residential prices rose 16.6 per cent year-on-year to AED 1,609 per square foot on average. Rental prices increased almost 10 per cent from H1 2024 but declined 0.6 per cent compared to H2 last year, driven by more new units entering the market.
Gross rental yields in June 2025 averaged 7.2 per cent for apartments and 5 per cent for villas and townhouses. Dubai Investments Park recorded the highest apartment yields at 10.3 per cent. For villas and townhouses, Dubai Industrial City led with 7 per cent.
Approximately 17,200 residential units were completed in H1, with nearly half of all handovers in Jumeirah Village Circle, Sobha Hartland and Mohammed Bin Rashid City. Apartment handovers made up more than 77 per cent.
Developers launched 300 new projects in H1, bringing 87,900 units to market, an average of 490 new homes per day.
Although over 61,800 units are under construction for the remainder of 2025, only 21 per cent of projects scheduled for completion this year have reached 75 per cent or more in construction progress.
“These projections suggest an average of 9,000 units could be delivered every month through to 2027, but actual completion rates are expected to be lower, potentially leading to timeline shifts and delayed handovers,” Arthur said.