Dubai's real estate market continued its remarkable growth trajectory in Q2 2025, with off-plan apartment transactions surging by 43% quarter-on-quarter. According to the latest Betterhomes report, total off-plan sales value reached AED 60.15 billion a 37% increase compared to the same period in 2024. This surge underscores Dubai's resilience and its rising appeal among global investors.

Market Breakdown: Apartments Continue to Dominate

Off-plan apartments accounted for 80% of all residential transactions in Q2 2025, maintaining their stronghold in the market. The average price for off-plan units rose to AED 2,023 per sq ft, reflecting a 12.5% increase since early 2023. Investor confidence remains high, with competitive price points and long-term yield potential driving demand.

Transaction Share by Unit Type

Two-bedroom apartments: 33% of total transaction value

One-bedroom units: 30%

Studios and three-bedrooms: Remaining share

This distribution reflects the increasing preference for spacious, mid-sized units among both investors and end-users.

Factors Behind the Surge

Several key dynamics are fueling Dubai’s off-plan apartment boom:

Launch of high-profile residential developments by trusted developers

Attractive post-handover payment plans and flexible financing options

High interest from foreign investors seeking portfolio diversification

Improved construction timelines and transparent handover commitments

Elevated rental yield prospects and continued price appreciation

Dubai's reputation for delivering luxury living experiences including branded residences and iconic architectural concepts adds to the city's international appeal.