Dubai property price growth slows in February: Dubai’s residential property prices recorded their slowest growth in 20 months in February 2025 as an increase in new supply helped ease demand pressures, according to the ValuStrat Price Index (VPI) February report (pdf). Villa prices increased by 2% m-o-m, down from a peak of 2.7%, while apartment values rose by 1.2%, a decrease from a previous high of 2%. The index was still up 26.5% y-o-y.

Villa prices continued to outpace apartments, surging 30.8% y-o-y, with Jumeirah Islands (+42.3%), Palm Jumeirah (+41.8%), and Emirates Hills (+31.2%) leading the way.

Meanwhile, apartment prices increased by 1.2% m-o-m in February, slowing from the 1.4% rise recorded in January. On an annual basis, prices grew by 22.2%. Among the areas with the highest yearly capital appreciation were The Greens (+28.9%), Palm Jumeirah (+26.3%), and Dubailand Residence Complex (+25.7%). Despite these gains, apartment valuations remain, on average, 9% below their previous market peak but have surged 65% from post-pandemic lows.

The demand for off-plan properties remained strong, with Oqood registrations jumping 22.2% month-on-month and 59.5% year-on-year, making up 70.8% of total transactions in February. Meanwhile, the secondary market also saw steady growth, with ready home sales increasing 12.8% monthly and 9.8% annually.

Where buyers are spending:

  • Emaar led sales with 17.5% of the market, followed by Damac (12.7%) and Sobha (4.8%).
  • Off-plan demand was highest in Jumeirah Village Circle, The Valley, and Damac Island City, while Dubai Silicon Oasis set a record for the highest number of off-plan deals in a single month.
  • For ready homes, Emirates Hills reached a new peak in transactions, while Jumeirah Village Circle, Business Bay, and Dubai Marina saw the highest activity.

ICYMI- Dubai’s real estate prices dipped 0.57% in January, according to Property Monitor data, marking the first decline since summer 2022. Despite a record 14.4k transactions, average prices fell below AED 1.5k per sq ft, hinting at potential market stabilization. Moody’s, Deloitte, and Knight Frank have all forecasted slower or stable price growth over the next 12 to18 months, with rising construction costs, potential delivery delays, and a wave of new supply weighing on the market.

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