Despite indications of a global downturn, Dubai’s real estate market is still expanding rapidly, according to the ValuStrat real estate report for the third quarter of 2025. Since the COVID-19 outbreak, the cost of residential villas has tripled (300%) and increased up to four times (400%) in some upmarket neighbourhoods.
Based on a base of 100 points in the first quarter of 2021, the ValuStrat Residential Price Index (VPI) climbed 21.3% year-over-year in the third quarter of 2025, compared to 23.9% in the previous quarter and 28.9% in the same period last year, according to the research. More than 27,000 additional residential units are anticipated to be supplied by the end of 2025, with 24,000 units delivered in the first nine months of the year.
According to the survey, villas continue to perform significantly better than flats because there aren’t enough available in the most desirable areas. The villa price index increased to 307.5 points, which is a 5.5% quarterly gain and a 26.4% yearly increase. Palm Jumeirah and Jumeirah Islands saw the largest quarterly gain, at 7.8%.
The value of residential units increased by 3.3% every quarter and 16.1% on an annual basis, reaching 180.4 points. With 4.9% growth, Remraam and Dubai Silicon Oasis saw the biggest gains.
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