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Dubai United Arab Emirates
Official data on real estate prices in Dubai during 2025 revealed an increase in the average selling prices of residential units, villas, commercial and luxury real estate, in conjunction with the increase in rents of apartments, villas and commercial real estate, according to the annual report of the Dubai Real Estate Market for 2025, issued by the Dubai Land Department, which was officially published in October 2026, and a copy of which was seen by Al Masdar Real Estate.
The report showed that the average selling price of residential units in Dubai was about $5,627 per square meter (20,666 dirhams), equivalent to about $523 per square foot (1,920 dirhams), an annual increase of 6% compared to 2024.
The average price of residential villas is about $4,572 per square metre (16,791 dirhams), equivalent to about $425 per square foot (1,560 dirhams), recording an annual growth of 15%, at a higher pace than residential units.
These prices are based on the official data of real estate transactions recorded during 2025, which are presented in the report in dirhams per square meter. Al Masdar Al Masdar conducted independent transfers to the US dollar and square feet, to facilitate the comparison of the prices of apartments, villas and commercial real estate in Dubai using the two units traded in the market.
Sale prices of residential and commercial properties in Dubai
The average price of commercial units in Dubai was about $6,023 per square metre (AED 22,119), equivalent to about $560 per square foot (AED 2,055), an annual increase of 20%.
The average price of commercial villas was about $5,577 per square meter (20,480 dirhams), or about $518 per square foot (1,903 dirhams), with an annual growth of 19%.
Thus, commercial units came at the forefront of the four main categories in terms of the average selling price per square meter, followed by residential units, then commercial villas and residential villas.
According to the report, the average prices of commercial units increased by 145% during the period from 2021 to 2025, compared to an increase of 99% for commercial villas, indicating that the cumulative growth in the prices of commercial units exceeded the counterpart of commercial villas during the five years.
How have the prices of apartments and villas in Dubai changed between 2021 and 2025?
Historical data shows that the average price of residential units increased from about $4,005 per square meter (AED 14,707) in 2021, equivalent to about $372 per square foot (1,366 dirhams), to about $5,627 per square meter (20,666 dirhams), equivalent to about $523 per square foot (1,920 dirhams) in 2025.
Calculating the change between the two years, the cumulative increase was about 40.5%, while the average price of residential villas increased from about $2,526 per square meter (9,277 dirhams), equivalent to about $235 per square foot (AED 862) in 2021, to about $4,572 per square meter (16,791 dirhams), equivalent to about $425 per square foot (AED 1,560) in 2025, with a cumulative growth of approximately 81%.
The comparison shows that the average price of villas recorded a cumulative growth faster than residential units, although the average price per square meter of housing units continued to rise from the villas at the end of the period.
This comparison does not mean that the total price of the apartment is higher than the villa, as the index measures the average price per unit of space, not the full value of the property.
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