Dubai Villa Market Surges as Average Price Sky Rockets to AED 8.7M
Dubai, UAE, Friday 3rd October - Dubai’s property market demonstrated another period of exceptional growth in the third quarter, with The Dubai Land Department (DLD) registering a total sales transaction value of AED 135.6 billion. While this marked a 9% dip from the previous quarter, the year-on-year performance told a stronger story, with a 16% increase that underscores Dubai’s continued momentum as a premium global property investment hub.
The quarter’s most significant trend was the surge in average property prices. The wider secondary market saw prices climb to AED 5.1 million, representing a substantial 28% increase year-on-year.
In the villa and townhouse segment, the impact of high-net-worth individuals has been particularly evident. Allsopp & Allsopp registered the average transaction price at a remarkable AED 8.7 million, a 21% increase from last year. This trend reflects the ongoing demand from ultra-wealthy buyers who are setting new benchmarks across Dubai’s most exclusive communities.
This momentum is highlighted by three major transactions reported by Allsopp & Allsopp. A Palm Jumeirah, Frond M villa sold for AED 40 million, a Wildflower villa in Jumeirah Golf Estates at AED 35.5 million, and a villa in Jumeirah Islands for AED 35 million. These landmark deals not only showcase Dubai’s appeal to the world’s wealthiest individuals but also contribute to the rising average prices citywide.
The villa and townhouse market remains especially robust, with DLD recording a 28% increase in transaction volume compared to the second quarter, as more families and long-term residents make Dubai their permanent home.
The off-plan market, meanwhile, showed signs of tightening supply. With 6,176 units completed, a decline of 12% year-on-year, and 28,573 new units launched, a 30% annual decline - the gap between supply and demand is becoming a critical factor. With nearly 600 new residents arriving daily, this dynamic raises important questions around future affordability and availability that may lead to further price adjustments.
The rental market also saw a strong third quarter, with transaction volumes rising by 15% from the previous quarter. New rental contracts jumped 31% during the period, a reflection of the significant number of new residents moving to Dubai over the summer. Allsopp & Allsopp’s own data mirrored this trend, recording a 40% increase in rental transactions compared to the last quarter, providing further evidence of the city’s enduring appeal to expatriates and professionals seeking new opportunities.
Overall, the data reinforces Dubai’s position as one of the most dynamic and resilient real estate markets in the world. The combination of rising property values, high-profile sales, and rapid population growth demonstrates a market that is successfully evolving to meet the needs of both ultra-wealthy investors and the wider resident base.
With looming supply constraints, opportunities for capital appreciation remain strong for investors, while landlords continue to benefit from robust rental demand. This positive market outlook solidifies Dubai’s reputation as a secure and rewarding long-term investment destination.
Key highlights:
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15% increase in the total sales transaction volume quarter-on-quarter (DLD)
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Increase in off-plan transaction volume of 27% quarter-on-quarter (DLD)
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31% increase in new rental contract volume quarter-on-quarter (DLD)
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Average property price has increased by 29% year-on-year (Allsopp & Allsopp)
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42% rise in sales transaction volume for villa/TH year-on-year (Allsopp & Allsopp)
About Allsopp & Allsopp
Allsopp & Allsopp is Dubai’s highest-awarded independent real estate agency. Founded in 2008 by Lewis Allsopp (Chairman) and Carl Allsopp (CEO), the company is recognised for its innovative, transparent approach to real estate, using data-driven tools and expert insights to help clients make informed property decisions.
For media enquiries, please contact:
Emily Bates, PR & Communications Manager
e.bates@allsoppandallsopp.com
+971 58 598 6637