Dubai’s real estate market continues its extraordinary ascent, with the Dubai Land Department (DLD) reporting AED 54 billion in total property sales transactions in May alone—a robust 11% increase compared to the previous month. This reflects the emirate’s sustained strength and global appeal in real estate investment.
One of the most compelling trends emerging is the exponential rise in villa and townhouse prices.
Since May 2022, average villa and townhouse prices have seen a dramatic 92% increase, surging from AED 3.47 million to AED 6.68 million. Even on a 12-month scale, there’s been a 35% year-on-year price increase, underscoring sustained demand, limited inventory, and heightened investor confidence in this segment of the market.
“Dubai’s property market is setting new standards—especially in the villa and townhouse segment,” says a spokesperson from Ocean Gate Luxury Properties.
“Consider the prospect of doubling your investment in just three years. That’s the current reality for many villa owners in Dubai. Demand remains elevated for spacious, ready-to-move-in homes, particularly in well-established communities like Arabian Ranches, Jumeirah Golf Estates, and Victory Heights.”
Secondary Market Displays Exceptional Strength
Dubai’s secondary (resale) property market has posted exceptional performance figures. In May, total secondary market sales values jumped 68% year-on-year, while average resale prices climbed 32%. This growth highlights increased activity from both homebuyers and investors, many of whom are securing property shortly after relocating to the city.
Transaction volumes in the secondary market also rose by 28% compared to the same period last year, reinforcing a broader shift toward long-term homeownership among Dubai’s expatriate population.
Off-Plan Sector Maintains Momentum
Investor confidence in off-plan developments remains unwavering. DLD data shows:
- 13% increase in average off-plan property prices month-on-month
- 20% year-on-year growth in value
This sustained interest is driven by Dubai’s global positioning as a destination for long-term capital appreciation, supported by continuous infrastructure expansion, business-friendly policies, and growing population dynamics.
Rental Market Sees Strategic Tenant Movement
While the DLD recorded a 19% decrease in rental renewal volumes and a 17% dip in renewal value, new rental contracts have increased significantly:
- 15% growth in new rental contract volume month-on-month
- 9% increase in new rental contract value
This shift suggests that many tenants are exploring suburban and secondary communities, especially as rental prices in prime areas continue to rise.
Established Communities Gain New Momentum
The surge in villa and townhouse prices is also revitalising interest in mature neighbourhoods, particularly where homes have undergone modern upgrades. Sellers are increasingly recognising the value in renovating older properties, as upgraded homes command a premium in today’s competitive market.
“We’re witnessing a notable trend where homeowners are renovating and repositioning older properties to meet rising demand for upgraded, spacious homes,” adds Ocean Gate Luxury Properties.
“Buyers are prioritising ready-to-move-in residences with high-quality finishes over undertaking renovation projects themselves.”
Dubai’s Villa and Townhouse Segment: A Benchmark for Growth
The past three years illustrate a compelling investment case in Dubai’s real estate market, especially for villas and townhouses. With the continued influx of high-net-worth individuals, foreign investors, and long-term residents, demand for quality, family-oriented homes remains exceptionally strong.
Dubai’s appeal lies in its ability to offer not just returns, but lifestyle, security, and world-class amenities—especially in established villa communities.
Key Market Insights:
- 📈 92% growth in average villa and townhouse prices since May 2022 (DLD)
- 🏡 52% year-on-year increase in average villa prices (Ocean Gate Luxury Properties internal data)
- 💰 73% annual increase in transaction value for properties under AED 1M (Ocean Gate Luxury Properties internal data)
- 🔄 68% rise in resale property value year-on-year (DLD)
- 🔺 73% increase in total villa/townhouse transaction value year-on-year (DLD)
- 📊 15% month-on-month increase in new rental contract volume (DLD)
Looking Ahead
As Dubai continues to evolve, its property market remains one of the most resilient and attractive globally. The villa and townhouse segment, in particular, offers significant upside potential for capital gains and long-term rental yields, especially for those investing in upgraded, ready-to-live-in homes.
Whether you’re a homeowner looking to capitalise on market momentum or an investor seeking long-term appreciation, Ocean Gate Luxury Properties is your trusted partner in navigating Dubai’s dynamic real estate landscape.
Get in touch with our expert advisors today to explore Dubai’s most sought-after communities and discover the finest selection of luxury villas and townhouses.
