46% Increase in Sales Transaction Value in Dubai’s Secondary Real Estate Market
Dubai, UAE – [Thursday 3rd July 2025] Dubai’s real estate market has recorded a strong first half of the year, with AED 260 billion worth of sales transactions completed. This marks a 35% increase in the total sales transaction value compared to the same period in 2024, highlighting continued confidence in the city’s property market. However, the standout performer has been the secondary market, which has significantly outpaced the off-plan segment across key indicators.
Sales transaction value in the secondary market surged by 46% year-on-year, compared to a 25% increase in the off-plan segment. Average sales prices in the secondary market rose by 15%, while off-plan prices increased by just 5%. This trend reflects a shift in buyer demand towards ready, quality stock, and is being driven primarily by the ongoing shortage of available villas and townhouses across Dubai.
In the first six months of 2025, the Dubai Land Department (DLD) reported a 55% increase in total villa and townhouse sales transaction value, compared to a 22% increase for apartments. This trend was also reflected in Allsopp & Allsopp data, which recorded a 79% rise in total transaction value for villas and townhouses, and a 30% increase for apartments.
While apartments accounted for 78% of secondary market transactions by volume and villas and townhouses made up 22%, villas and townhouses significantly outperformed in terms of price growth and value contribution. This reflects strong buyer appetite for family homes and the limited supply available in the market.
This demand is directly driving price increases, with Allsopp & Allsopp reporting a 49% rise in the average sales price for villas and townhouses compared to H1 2024. Communities such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have led transaction activity, highlighting the enduring appeal of well established neighbourhoods that offer privacy, space and lifestyle-led amenities.
The shortage of newly built villas and townhouses has also encouraged both investors and homeowners to renovate existing properties. These upgraded homes are achieving premium resale values, with turnkey, move-in ready properties becoming increasingly popular among both end users and investors seeking strong return on investment.
Commenting on the market performance, Lewis Allsopp, Chairman of Allsopp & Allsopp, said, “We have seen a remarkable shift in buyer focus towards the secondary market. With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities. In the five to ten million dirham price bracket, we’ve seen a 50% increase in sales volume in the first half of the year. Even more impressively, the ultra-luxury segment, above ten million dirhams, has recorded a 113% increase in sales volume.”
“This level of activity is a clear sign of growing investor confidence and high-net-worth-individuals choosing Dubai not just for lifestyle, but for long-term capital growth and return on investment. The secondary market is proving its strength, especially in the villa and townhouse space, where demand continues to outstrip supply” he adds.
As the city moves into the second half of 2025, Allsopp & Allsopp expects the trend to continue, with the secondary market, particularly in the villa and townhouse segment remaining the primary driver of market growth, fuelled by strong buyer demand and the continued scarcity of new, ready properties.
Key data points:
35% increase in the total sales transaction value year-on-year (DLD data)
46% rise year-on-year in secondary sales transaction value (DLD data)
114% rise in sales transactions above AED10M year-on-year (Allsopp & Allsopp data)
49% increase in villa/TH average price year-on-year (Allsopp & Allsopp data)
79% increase in sales transaction value of villa/TH year-on-year (Allsopp & Allsopp data)
To read the full H1 2025 Market Snapshot click the link here
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PR & Communications Manager
e.bates@allsoppandallsopp.com +971 58 598 6637