Dubai’s residential market enjoyed another record-breaking year in 2025, says Knight Frank.
Transaction volumes reached an all-time high of 205,400 deals in 2025 – an 18% uplift compared to 2024.
Knight Frank’s analysis shows the ultra-luxury segment remains particularly robust.
Sales of US$ 10 million+ homes are at historically high levels, with 143 deals recorded in Q4 2025 and 500 deals completed in 2025.
This segment continues to show resilience, cementing Dubai’s status as a top-tier global destination for ultra-high-net-worth individuals.
While mainstream prices demonstrate steady, gradual growth, prime values have accelerated sharply surpassing AED 4,300 per square foot.
RENTAL MARKET
Knight Frank’s analysis of the rental market found Downtown Dubai commands the highest annual rents, with one-bedroom apartments averaging AED 127,000, followed by Dubai Marina at AED 102,000.
Among the top 10 communities by rental value, Jumeirah Village Circle recorded the highest annual increase in average rental rates, jumping by 13% to AED 72,500, while rents in Business Bay rose by 10% to AED 99,000.
In contrast to the apartment market, where all of the top 10 most active locations saw rental rates increase during 2025, the villa rental market is showing signs of fragmentation.
While premier communities such as Tilal Al Ghaf outperformed with a 13% increase, secondary locations such as Al Furjan saw values dip by 2%, indicating that price sensitivity may be impacting on non-prime villa locations.
SURGE IN SUPPLY
The registered projects pipeline, as tracked by Knight Frank suggests an influx of inventory in 2026.
Indeed, over 160,000 units could enter the market this year.
The agency says it expects to see an overall moderation in the pace of house price growth as supply increases and the natural progression of the property cycle plays out.
However, the structural drivers of demand in Dubai – population expansion, wealth migration and economic diversification – remain firmly intact.
While the rate of house price growth may be demonstrating signs of slowing, crucially it remains positive, underpinned by what Knight Frank calls robust international HNWI demand for premium homes, continued inflows of global wealth and a deepening pool of resident investors.
