Dubai Villa and Townhouse Prices Soar by 92% in Three Years
Dubai, UAE - [Tuesday 3rd June, 2025] - Dubai Land Department (DLD) reported 54 billion in property sales transactions across Dubai in May, an impressive 11% increase from the previous month, reinforcing the city’s continued real estate momentum.
The long-term growth and capital appreciation in villa and townhouse prices stand out amongst last month's transactions.
Since May 2022, the average villa and townhouse prices have skyrocketed by a remarkable 92%, climbing from AED 3,475,523 to AED 6,682,023 in just three years. Even within the last year alone, these properties have seen a significant 35% increase in sales price across villa and townhouse communities, as reported by the DLD. This is a clear indicator of sustained demand, limited supply, and growing investor confidence in villa and townhouse communities in Dubai.
Lewis Allsopp, Chairman of Allsopp & Allsopp said: “The Dubai real estate market is not just growing - it’s redefining investment benchmarks, especially for villas and townhouses.
Imagine nearly doubling your investment in just three years - that’s the reality for villa and townhouse owners in Dubai. The under-supply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have.”
Dubai’s secondary property market shows remarkable strength. Last month, total sales value surged by 68% year-on-year, with average resale home prices rising 32%.his trend confirms significant demand from both end-users and investors, as many individuals are quickly purchasing homes upon arriving in Dubai. Furthermore, secondary market transaction volume increased by 28% year-on-year, underscoring a clear move towards homeownership for expats settling in the city.
Confidence in the off-plan sector remains exceptionally high, marked by a 13% increase in average sales price month-on-month and a 20% rise year-on-year. Buyers consistently look to Dubai as a prime destination for capital appreciation and long-term investment. This interest is driven by the city’s continuous growth, attracting new businesses, enticing tourists with its appeal, and welcoming residents establishing new lives.
While DLD reported a month-on-month decrease in rental renewal volume (19%) and value (17%), the market for new rental contracts has notably strengthened. DLD figures show volume increased by 15% and value by 9% month-on-month. This suggests a strategic shift in tenant preference, with individuals increasingly exploring suburban areas for properties amidst ongoing rental price increases in prime locations.
With the rise in average prices across villa and townhouse communities, it’s clear that established, older neighbourhoods are experiencing a strong wave of renewed interest, especially for homes that have been well-upgraded.
Sellers are increasingly recognising the potential in renovating older properties, as these modern homes within their community now command significant prices.
Lewis Allsopp says: “We’re now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows. Many of Dubai’s older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves.”
The last three years clearly show the strong value of investing in Dubai’s property market, especially in the villa and townhouse segment. As Dubai keeps attracting high-net-worth individuals and long-term residents, demand remains very strong, particularly for homes that offer good space, a great lifestyle, and are ready to move into immediately.
Key data points:
52% increase in average villa price year-on-year (Allsopp & Allsopp data) 73% increase year-on-year for sales for properties less than AED 1M (Allsopp & Allsopp data) 68% rise in secondary sales transaction value year-on-year (DLD data) 73% increase in villa/TH total transaction value year-on-year (DLD data) 15% increase in new rental contract volume month-on-month (DLD data)
Read the full May market snapshot here
For media enquiries, please contact Emily Bates, PR & Communications Manager
e.bates@allsoppandallsopp.com +971 58 598 6637