Supply Squeeze Positions Dubai Villas as Investor Goldmines
Dubai, UAE - Wednesday 3rd December - Dubai’s property market in November 2025 clearly demonstrates one defining trend: off-plan is outperforming the secondary market at a pace not seen in years, driven by investor appetite, fresh launches, flexible payment plans, and limited resale inventory.
Dubai Land Department (DLD) data shows total sales value reaching an impressive AED 45.95 billion in November which is a 35% increase year-on-year, alongside a 32% rise in total sales transactions. Yet beneath these headline numbers lies a widening gap between the booming off-plan sector and the more constrained secondary market.
Off-plan continues to dominate the Dubai real estate market with a 55% year-on-year increase in sales value and a 49% rise in volume. The competition between developers is becoming increasingly fierce as they compete for market share. For November, off-plan represented 59% of all transactions by volume and an even stronger 70% of the market by value. This dominance is fuelled by attractive developer incentives, modern project offerings, and the amenities being included in these developments ensuring residents do not need to leave their building.
The secondary market, by comparison, is experiencing a different reality, one shaped almost entirely by supply limitations. Although prices in the secondary market rose 11% year-on-year and transaction value increased 14%, volume grew by only 3%. The imbalance is most pronounced in the villa and townhouse segment, where limited stock is driving prices upward even as transactional activity softens. DLD data shows an 18% month-on-month drop in secondary villa and townhouse transactions and an 11% decline in value for November, a trend directly linked to the scarcity of available homes. This supply squeeze has pushed average prices up by 19% year-on-year, and for sellers, it means anyone holding a villa or townhouse is effectively sitting on a gold mine. Allsopp & Allsopp recorded a similar pattern with a 20% increase in average villa and townhouse prices internally.
A major factor contributing to the secondary stock supply is the nature of recent launches. October 2025 saw 94% of all new launches dedicated to apartments, with zero new villa or townhouse communities coming to market and only 10% of launches allocated to office or commercial space. The city is rapidly adding vertical living options, yet family communities remain extremely limited. This helps explain both the sharp price growth and the reduced transactional activity in the resale villa market, as homeowners are reluctant to sell without suitable alternatives, unless they are willing to downsize significantly and move into the apartment segment.
Apartments tell a different story with the segment continuing to absorb both end-user and investor demand, showing a 4% increase in value and a 1% rise in volume month-on-month. Year-on-year, apartment prices climbed 7%, while transaction value soared 52% and transaction volume by an impressive 40%. Allsopp & Allsopp’s internal data supports this surge with a 42% increase in the average apartment sales prices compared to this time last year. This continues to show a positive trajectory within Dubai’s real estate market.
November’s top transactions echo the market-wide trend with luxury waterfront off-plan projects continuing to pull global capital. The two highest-value apartment sales of the month were both under construction in La Mer, achieving AED 96,895,000 and AED 30,895,000. A completed residence in The Royal Atlantis followed at AED 28,000,000, reinforcing Dubai’s position as a global hub for luxury real estate.
The rental market experienced a noticeable slowdown in November, with market-wide activity dipping as rental renewals fell by 22% and new contracts dropped by 15%. Villas and townhouses mirrored this trend, seeing an overall decline of 19% in both transaction volume and value, with year-on-year comparisons showing a similar softening. However, despite the reduced activity, Allsopp & Allsopp observed a 24% increase in average rental prices, accompanied by a 24% rise in rental transaction value year-on-year, reflecting sustained demand for high-quality properties. This quieter period is typical for this time of year, as fewer tenants move during the lead-up to the holiday season, and following a particularly busy summer of leasing activity, it means the dip was anticipated.
Overall, November made one thing clear - off-plan is driving Dubai’s record-breaking performance, fuelled by aggressive development, investor confidence, and an expanding international buyer base. Meanwhile, the secondary market, especially villas and townhouses, continues to face pricing pressure due to low supply rather than low demand.
Data highlights:
- 35% increase in total sales value year-on-year (DLD)
- Price per sq. ft has increased by 17% year-on-year (DLD)
- 55% increase year-on-year in sales transaction value for the off-plan market (DLD)
- 37% increase in the average sales price year-on-year (Allsopp & Allsopp)
- Total sales transaction value increased by 42% year-on-year (Allsopp & Allsopp)
- 40% increase in sales transactions of properties between AED 3M - 5M (Allsopp & Allsopp)
Full report coming soon
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.
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