Villas are emerging as a key driver of Dubai’s property market, which is now approaching its fifth consecutive year of growth. Villa prices recorded a 16 per cent year-on-year increase, leading a market-wide surge that saw overall residential prices climb more than 13 per cent compared to 2024.
According to global property consultancy Knight Frank, the second quarter of 2025 marked a “historic high” for both transaction volumes and values. The period from April to June saw over 51,000 home sales, setting an all-time quarterly record.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, identified the villa market as a critical segment to watch. “Just 20 per cent of the planned housing supply through to the end of 2029 will fall in the villa category,” he said. “With demand remaining centred on stand-alone family homes, the delta between villa and apartment price performance may well continue to widen.”
The demand for larger homes with space for home offices, gyms, and outdoor areas, which began during the pandemic, has been sustained by a wave of international high-net-worth buyers. These buyers are primarily seeking the city’s most exclusive properties, which are often standalone, beachfront villas.
This strong demand has pushed villa values to an average of Dh2,172 per square foot, a 4 per cent increase over the quarter. Villa prices are now 49.3 per cent above their 2014 peak, while apartment prices have risen 17.5 per cent over the same period. With a continued short supply expected in the medium term, this segment is poised to keep outperforming apartments.
Price growth for villas has been robust across all market segments. In Q2 2025, the highest quarterly increases were seen in Victory Heights, Al Barari, Jumeirah Park, and Dubai Hills Estate, with average prices rising between 8 and 10 per cent. On an annual basis, top performers included accessible communities like Green Community West, Al Furjan, and Emaar South, alongside affluent areas such as The Meadows and Arabian Ranches.
The market’s current strength is supported by a significant shift in buyer profile. Will McKintosh, Regional Partner and Head of Residential for MENA, noted that the market is increasingly shaped by genuine end-users rather than speculators. This is evidenced by resale activity, with only 4-5 per cent of homes being resold within 12 months of purchase, a stark contrast to the 25 per cent rate seen in 2008.
“There is far less speculative market activity today compared to the two previous cycles,” Durrani added, explaining that this trend indicates a rise in both end-users and long-term “buy-to-let” or “buy-to-hold” investors.
The broader market reflects this sustained momentum. The total value of residential sales in the first half of the year reached Dh268 billion, a 41 per cent increase from the same period last year, putting 2025 on track to surpass the Dh367 billion recorded in 2024. Citywide residential prices rose by 3.4 per cent in Q2 2025 to an average of Dh1,809 per square foot, placing current values 21.6 per cent above the previous market peak in 2014.
Knight Frank’s forecast for 2025 remains an 8 per cent growth in the mainstream market and 5 per cent in the prime segment, underscoring the stability of the current cycle.
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