Dubai Real Estate Continues To Scale New Heights In 2025

(MENAFN- Khaleej Times)

Dubai's real estate market reached new heights in 2025, buoyed by strong investor confidence, record-breaking transactions, and continued demand across all asset classes. In November alone, the market recorded Dh45.79 billion in value across 17,777 deals-up from Dh33.77 billion and 13,472 transactions the previous year. For the year to date through November, transactions surpassed Dh624 billion, making 2025 the most active year on record.

Residential sales were led by off‐plan apartments, which comprised roughly 71 per cent of November deals, while villa demand remained steady. Apartment prices climbed roughly 8 per cent year‐on‐year, averaging between Dh1,400–1,600 per sq ft, according to DXB Interact. Villas saw average price growth of 7 per cent, while off‐plan units rose by 10 per cent, reflecting strong developer activity. Prime zones like Dubai Hills Estate, Jumeirah Village Circle, Downtown, and Beachfront recorded growth between 9–14 per cent.

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Residential property indices indicate a sharp 36 per cent increase in H1's total transaction value compared to mid‐2024, with 59 per cent of sales being off‐plan. Premium villas led the segment with a striking 19 per cent average price jump, notably in Emirates Hills (up 45 per cent) and Victory Heights (up 44 per cent). Foreign and local investor engagement remains robust, with Dubai Land Department data showing 94,700 investors in H1 alone, injecting Dh326 billion-an increase of 39 per cent year‐on‐year. Women alone invested Dh73.2 billion, highlighting the emirate's broadening appeal.

As the sector continues steady growth, India's leading real estate developer, Casagrand, has officially unveiled Casagrand HERMINA, a premium residential development located on the rapidly transforming Dubai Islands.

The project offers 131 residences ranging from one- to four-bedroom apartments. Prices start at Dh1.92 million, with a 60/40 payment plan. Completion is scheduled for Q2 2028.

Dubai Islands is a major coastal district backed by government vision and investment, supported by the Dubai 2040 Urban Master Plan. The area features 21 km of blue flag-certified beaches, major infrastructure upgrades including an eight-lane bridge to Downtown Dubai by 2026, and a planned Metro link. With extremely high demand showcased by almost 50% rise in transactions last year, and limited supply of prime waterfront locations as well as future-ready connectivity, Dubai Islands is positioned as one of the emirate's strongest long-term real estate investment corridors.

Arun Mn, Founder and Managing Director, Casagrand, said:“At Casagrand, we have spent more than 22 years creating high-quality developments grounded in precision, timely delivery, and an unwavering focus on customer satisfaction. Bringing this ethos to the UAE is an important milestone for us, and Casagrand HERMINA encapsulates what we value most, a place where the sea brings calm, the city stays close, and life feels restorative, joyful, and connected.

Luthfullah K, Director, Dubai, Casagrand, said:“Dubai Islands represents one of our city's most exciting long-term growth corridors, and it was essential for our first UAE development to be rooted in a location that reflects both our ambition and our values.”

London Gate, the Dubai-based developer, and luxury watchmaker Franck Muller recently announced the complete sellout of their third collaboration, Franck Muller Yachting, valued at Dh900 million.

“People are investing in buying into a vision, and a track record. Every buyer who chooses Yachting is making a statement about what they value: craftsmanship that lasts generations, design that tells a story, and a lifestyle that goes beyond,” says Eman Taha, CEO of London Gate.

Rising in Dubai Maritime City, the development comprises 574 residential units – spanning studio, one-, two-, and plus-bedroom homes.“The quick and full sell-out of Franck Muller Yachting shows that our brand's legacy is successfully moving into the real estate market, which is now a key part of our long-term vision,” said Erol Baliyan, Managing Director of Franck Muller. “Yachting brilliantly brings the refined style and craftsmanship of our watches into the world of luxury homes.

Meanwhile, Ras Al Khaimah has emerged as a compelling alternative, characterized by rapid capital value appreciation, high rental yields, and lifestyle‐oriented developments. ValuStrat's H1 index rose 13.8 per cent year‐on‐year, with villas up 15 per cent and apartments 13.2 per cent. Hotspots include Mina Al Arab (+20 per cent for villas, +14.5 per cent for apartments), Al Hamra, and Marjan Island.

Off‐plan dominates RAK's market: 85 per cent of freehold sales in H1 were off‐plan, totaling Dh6 billion across over 3,000 units, with ready sales less than 600 units. Rental yields are attractive: apartments averaged 5.6 per cent and villas 2.3 per cent. In Q3, ValuStrat recorded apartment prices rising 15.5 per cent year‐on‐year and villas 13.8 per cent.

Branded luxury developments are shaping the emirate's appeal. Branded residences are projected to represent 25 per cent of new freehold supply by 2030. RAK's GDP is forecast to grow around 4 per cent annually through 2027, supported by tourism expansion, industrial growth, and continued infrastructure investments.

In this regard, ELEVATE, the lifestyle real estate brand, announced that its Mondrian Al Marjan Island Beach Residences became the emirate's fastest-selling project, recording Dh704 million in sales within just two hours.

The overwhelming response saw more than 200 units snapped up by investors and homeowners almost immediately, validating the project's status as the most anticipated branded residence in the Northern Emirates. Capitalizing on this momentum, ELEVATE has announced that the final 100 units will be released soon.

The project, valued at Dh1.8 billion, is developed in partnership with Ennismore, the world's fastest-growing lifestyle hospitality company. Designed by global leaders Gensler and Bergman Design House, the development creates a new benchmark for branded beachfront living, blending bold architecture with sensory storytelling, a combination that has resonated deeply with global investors.

Zeeshaan Shah, Founder & Chairman of ELEVATE, said:“The incredible demand we witnessed, selling over Dh700 million in just two hours, is a powerful validation of our vision for Mondrian Al Marjan Island Beach Residences. We didn't just launch a building; we introduced a new standard of lifestyle that resonates deeply with global investors. This rapid absorption proves that Ras Al Khaimah is no longer just an emerging market; it is a prime destination for luxury real estate.”

Richmind, a premium developer specialising in ultra-niche real estate projects and a flagship business vertical of Richmind Holding, has officially broken ground on Oystra, its residential project on Al Marjan Island, Ras Al Khaimah. Designed by Zaha Hadid Architects (ZHA), Oystra represents a defining moment in the emirate's emergence as the UAE's next world-class coastal investment destination.

With Phase 1 fully sold out, the groundbreaking marks a significant milestone and signals the formal launch of Phase 2, now officially on sale. The sellout of Phase 1, driven by strong global and regional demand, underscores growing investor confidence in high-growth beachfront markets like Ras Al Khaimah. Construction remains firmly on track for the 2029 handover.

“Al Marjan Island has always been envisioned as a premier waterfront destination, and the groundbreaking of Oystra marks an exciting milestone in the island's continued growth. Richmind's commitment to design excellence and world-class partnerships, reinforces the international appeal of Ras Al Khaimah and elevates the lifestyle offering for residents and investors alike,” says Arch. Abdulla Al Abdouli, Group CEO, Marjan.

Located just steps from the UAE's first integrated resort, Wynn Al Marjan Island, Oystra will offer 850 one to four-bedroom luxury seafront residences, each oriented to maximize views of the Arabian Gulf.

Mohammad Rafiee, CEO of Richmind Holding, said:“Oystra is more than a development, it is a milestone in Ras Al Khaimah's rise as a global coastal investment destination. The rapid sellout of Phase 1 reflects growing international interest in the emirate, as buyers increasingly seek premium, design-led beachfront properties with strong long-term value potential.”

Dubai's real estate sector shows sustained momentum underpinned by transparent data, diversified asset classes, and global investor confidence. Meanwhile, Ras Al Khaimah stands out as a high‐growth, high‐yield frontier, bolstered by branded developments and attractive price appreciations. Both markets offer compelling narratives for investors seeking stability, yield, and long‐term appreciation.

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