In the first half of 2025, Dubai’s secondary real estate market performed exceptionally well, and analysts predict that this trend will continue in the months to come. The primary cause of this boom has been the growing demand for villas and townhouses as well as the limited supply in this market.
Increased Transactions and Changing Purchaser Priorities
The secondary market’s overall transaction value increased by 46% over the same period last year, while the off-plan segment saw a more moderate 25% increase, according to a report by real estate consultancy Allsopp & Allsopp.
Ready-to-move-in properties saw a 15% increase in average sales price.
Only a 5% increase was noted in off-plan units.
These numbers imply that buyers are turning more and more toward ready-made, high-quality homes, particularly townhouses and villas where there is a clear shortage of supply.
Expert Opinions and the Selections of Wealthy Purchasers
The CEO of Allsopp & Allsopp, Lewis Allsopp, said:
“A strong resale market indicates that investors are confident. Rich purchasers are picking Dubai for long-term capital growth as well as its lifestyle.”
Apartments accounted for 78% of secondary market transactions in H1 2025, with villas and townhouses making up 22%. On the other hand, family home price growth has been substantially more robust.
Price hikes and the phenomenon known as “greedy selling”
Some experts have cautioned against “greedy” behavior from some property owners despite the market boom. The CEO of MH Developers, Morteza Hashemi, stated:
“A lot of sellers are requesting asking prices that are higher than the property’s actual worth. In the second half of the year, this trend is probably going to lead to a price correction, which will ultimately be beneficial for the secondary market.”
Since there is still a shortage of new villas, many buyers are prepared to pay more for homes that have been renovated and are ready to move into. The renovation and resale market has expanded as a result.
Growth and Prospects of the Luxury Segment
Transaction volumes increased by 50% in the AED 5–10 million range and by an impressive 113% in the ultra-luxury segment (amounts over AED 10 million). According to experts, Dubai’s secondary real estate market particularly for villas and Townhouses for Sale in Dubai will continue to be the primary growth engine in the second half of 2025. Prices will continue to rise due to strong demand and a shortage of available homes.
Conclusion
The first half of 2025 saw Dubai’s secondary real estate market expand at an unprecedented rate, and the city became a popular destination for both domestic and foreign investors due to the rising demand for opulent family homes. However, some sellers have warned about overpriced listings, which raises the possibility of a price correction. Supply and demand must be balanced for this market to survive; it currently favors sellers but needs to be adjusted for long-term viability.
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