Dubai Real Estate Growth Moderates As Villas Outperform Apartments

Dubai's residential property market continued to grow in November 2025, albeit at a slower pace, with villas maintaining a clear lead over apartments in terms of capital appreciation, according to the latest ValuStrat Price Index (VPI).

The citywide VPI reached 237.3 points, marking a monthly increase of 1.4 per cent and an annual growth of 20.2 per cent. Villas posted stronger gains, climbing to 318.5 points, while apartments stood at 184.2 points, both benchmarked to January 2021 levels. This divergence underscores a trend that has persisted throughout the year: demand for larger homes remains robust, even as overall market momentum cools.

Villa prices rose 1.8 per cent month-on-month and 25.5 per cent year-on-year, with Jumeirah Islands leading the pack with an impressive 37.8 per cent annual growth, followed by Palm Jumeirah (36.9 per cent) and Green Community West (24.2 per cent). Victory Heights and Mudon recorded the weakest villa growth at 19.6 per cent and 10.4 per cent, respectively. Freehold villas are now valued 206 per cent above post-pandemic levels and 86 per cent higher than the 2014 peak, highlighting their resilience and appeal among high-net-worth buyers.

Apartment values edged up 1 per cent in November, with annual growth easing to 14.8 per cent. The strongest performers included Remraam (22 per cent), Dubai Silicon Oasis (21.5 per cent), and The Greens (20.5 per cent), while International City (10.3 per cent) and Discovery Gardens (11.8 per cent) lagged behind. Overall, apartment prices are 84 per cent above post-pandemic levels and have just surpassed their previous peak in 2014.

Despite softer monthly sales, transaction volumes remain higher than last year. Off-plan sales dominated, accounting for 74 per cent of all residential deals, even as registrations dipped 3.4 per cent month-on-month. Year-on-year, off-plan transactions surged 64.4 per cent, while ready-home sales rose 4.3 per cent compared to November 2024. Jumeirah Village Circle led both off-plan and ready sales, followed by Business Bay, Dubai Marina, and Downtown Dubai.

Ultra-prime properties continued to attract global investors, with 32 ready-home transactions exceeding Dh30 million, including 10 deals above Dh50 million. These were concentrated in Palm Jumeirah, Dubai Hills Estate, Jumeirah Islands, and Emirates Hills.

Emaar topped the developer sales chart with 11.6 per cent market share, followed by Binghatti (9.2 per cent) and Damac (8.1 per cent). Among off-plan hotspots, Jumeirah Village Circle, Dubai Maritime City, and Jumeirah Village Triangle featured prominently.

While growth has moderated, Dubai's residential market remains buoyant, supported by strong demand for luxury villas and sustained interest in off-plan projects. Analysts expect price movements to stabilize further in early 2026, with affordability and supply dynamics shaping the next phase of the cycle.

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