Dubai’s residential real estate market once again underscored its resilience in August, weathering the seasonal slowdown with confidence as investors, end-users, and tenants continued to fuel demand across apartments, villas, and townhouses.
Data from Betterhomes reveals that activity, while softer on a monthly basis, remained firmly upward compared with last year, reinforcing the city’s reputation as one of the world’s most attractive real estate hubs.
According to Betterhomes, sales activity in August recorded 17,710 transactions, down 5.9 per cent from July. The total value of deals reached Dh42 billion, reflecting an 18.6 per cent dip month-on-month. Yet the year-on-year picture was brighter, with both transaction volumes and values rising by 10 per cent compared with August 2024. Prices also held firm, with the average sales price per square foot edging up to Dh1,932, a gain of 2.1 per cent.
Off-plan developments continued to dominate, making up 73 per cent of all transactions, with developers such as Binghatti, Emaar, and Sobha Group leading sales. Apartments remained the strongest segment, with one-bedroom units representing nearly half of all purchases. In the villa and townhouse category, buyers showed a clear preference for family-sized homes, with four-bedroom units accounting for 46.3 per cent of sales.
Betterhomes also recorded an 11 per cent rise in buyer leads during August, with investors making up 59 per cent of buyer profiles and end-users comprising the remaining 41 per cent. Financing trends point to a maturing lending environment, with mortgage-backed purchases outweighing cash deals at 58 per cent.
“August reminded us that confidence in Dubai’s property market runs deep. The 10 per cent 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 Dh1,932 per square foot. At Betterhomes, we saw an 11 per cent increase in buyer enquiries, a clear signal that market confidence endures,” said Cristopher Cina, director of sales at Betterhomes.
The leasing market was equally buoyant. Rental transactions rose to 41,504 contracts in August, up 5.7 per cent from July. Fresh leases are becoming a defining feature, with new contracts climbing to 18,186 — 44 per cent of activity — compared with 40 per cent in July. Renewals made up the remaining 56 per cent, showing that tenants are both moving into new homes and choosing to stay put.
Rental growth was most pronounced in Jumeirah’s villa segment, where average annual rents reached Dh539,000, up 4.2 per cent, while apartments in Mirdif saw the steepest jump, rising 5.5 per cent to Dh88,000. Betterhomes reported a 38 per cent increase in tenant enquiries during the month, with apartments accounting for nearly half of demand, followed by townhouses at 32 per cent. Payment flexibility remains a cornerstone, with one-cheque and four-cheque options still the most popular at 30 and 32 per cent 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 per cent, 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.
The most sought-after communities in August further highlight enduring buyer and tenant preferences. Dubai Marina, Business Bay, and Jumeirah Village Circle topped the list for apartment sales, while Arabian Ranches, Dubai Hills Estate, and Jumeirah Golf Estates were the most popular for villas.
These trends are consistent with wider market indicators. Figures from the Dubai Land Department show that total property sales in August exceeded Dh51 billion across 18,715 transactions, representing an 8.7 per cent annual increase. Apartments led the charge, with volumes rising by almost 30 per cent compared with August 2024, while villa sales softened. Market analysts such as CBRE and ValuStrat note that Dubai’s average residential prices are now growing at double-digit rates annually, with rental yields among the highest globally.
According to property market experts, August’s performance thus reinforced a simple truth: Dubai continues to deliver opportunity, stability, and growth, underpinned by international investor interest, expanding rental demand, and a maturing financing environment.
They said the outlook remains optimistic despite warnings of a potential price correction in the year ahead as supply grows. Developers are expected to deliver more than 70,000 units before the end of 2025. Yet, sustained population growth — Dubai’s residents recently crossed the four-million mark — alongside foreign investment inflows are expected to keep demand solid.
- Dubai
