Dubai, UAE — While off-plan projects continue to capture headlines, Dubai’s secondary real estate market has emerged as the unexpected frontrunner in 2025, recording a remarkable 46% surge in transaction values during the first half of the year, outpacing the off-plan segment’s 25% growth and signaling a fundamental shift in buyer preferences across the emirate.
The Dubai secondary real estate market registered transaction values exceeding AED 120 billion in H1 2025, driven by acute shortages of ready-to-move villas and townhouses, according to data compiled by leading real estate consultancy Allsopp & Allsopp. This performance comes as Dubai’s overall property market achieved record-breaking sales of AED 431 billion across 125,538 transactions in the same period, marking a 25% year-on-year increase, the Dubai Land Department reported.
Ready Properties Command Premium Pricing
Average sales prices for ready-to-move properties increased 15% in H1 2025, triple the 5% growth observed in off-plan units, reflecting intensifying demand for immediate occupancy options. The Dubai secondary real estate market saw particularly strong momentum in the AED 5-10 million price bracket, where transactions surged 50%, while the ultra-luxury segment above AED 10 million recorded an extraordinary 113% volume increase.
“We have seen a remarkable shift in buyer focus towards the secondary market,” Lewis Allsopp, Chairman of Allsopp & Allsopp, stated in the company’s mid-year report. “With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities.”
Villa communities including Palm Jumeirah, Dubai Hills Estate, The Springs, The Meadows, and Jumeirah Village Circle have outperformed with double-digit growth, supported by limited supply and resilient end-user demand, according to Cushman & Wakefield Core analysis.
Market Maturity Drives Secondary Segment Growth
Global consultancy CBRE documented property values rising nearly 14% annually to June 2025, with total residential transaction volumes surging 23% year-on-year. The firm’s Q2 2025 UAE Real Estate Market Review highlighted that while off-plan projects attracted developmental interest, the Dubai secondary real estate market demonstrated superior price appreciation and liquidity characteristics.
Also read: Dubai Real Estate Market Hits Record AED170.7 Billion in Q3
ValuStrat’s Q2 2025 report revealed that ready home sales increased 10.4% quarter-on-quarter, resulting in 13,700 title deed registrations at an average price of AED 2.7 million. Apartment prices in the secondary segment increased 19.1% year-on-year, while villa prices rose 28.7%, significantly outpacing rental growth which moderated to 4.8% for villas and 7.2% for apartments.
“As supply ramps up in the second half of the year, close attention will be needed to monitor its impact on pricing dynamics,” commented Haider Tuaima, Managing Director and Head of Research at ValuStrat, in the company’s quarterly analysis. “Nonetheless, the outlook remains positive across residential, office, and industrial sectors.”
Supply Constraints Fuel Secondary Market Demand
Knight Frank’s Q1 2025 Dubai Residential Market Review indicated citywide residential prices reached AED 1,749 per square foot, now 17.6% higher than the previous market peak in 2014. The consultancy’s analysis showed secondary market transactions accounted for approximately 40% of total residential sales in early 2025, up from 35% in 2024.
The Dubai secondary real estate market benefited from delayed project completions and reduced villa supply, creating opportunities for property owners to capitalize on inventory shortages. Apartments constituted 78% of secondary market transactions in H1 2025, with villas and townhouses representing 22%, though the latter segment demonstrated substantially stronger price appreciation.
Cushman & Wakefield Core projected 44,000 residential units would be delivered in 2025—the highest in five years—with completions expected to rise to 69,000 units in 2026. This anticipated supply influx has raised questions about future pricing dynamics in the Dubai secondary real estate market.
Correction Concerns Emerge Amid Pricing Pressures
Despite robust performance indicators, industry observers have cautioned about unsustainable pricing strategies among secondary market sellers. Murtaza Hashmi, CEO of MH Developers, warned that “there’s a lot of greed from sellers—many are demanding more than what the property is actually worth,” according to statements reported by multiple real estate platforms.
“As a result, we’re likely to see some correction in the secondary market later this year,” Hashmi noted, suggesting the adjustment would be “healthy” for long-term market sustainability. Fitch Ratings similarly anticipated moderate corrections beginning in H2 2025 as new unit volumes potentially outpace population growth, though prime areas are expected to remain resilient.
Q3 2025 data from DXBinteract and Dubai Land Department showed sustained momentum, with 59,228 transactions valued at AED 170.7 billion recorded—the highest quarterly volume in Dubai’s real estate history. Secondary market activity contributed significantly to this performance, demonstrating continued buyer confidence despite correction forecasts.
Strategic Opportunities For Indian Investors
Indian nationals remained the largest foreign investor group in Dubai’s property market throughout 2025, attracted by tax-free investment environments, Golden Visa residency options, and rental yields ranging from 7-15%. The Dubai secondary real estate market offers particular advantages for Indian investors subject to the Reserve Bank of India’s Liberalized Remittance Scheme, which caps overseas investments at USD 250,000 annually.
Also read: Dubai Residential Property Market Shifts as Tenants Turn to Buying
Secondary properties provide immediate rental income opportunities without construction wait periods, allowing investors to generate returns while property values appreciate. Areas such as Dubai South, Dubailand, Jumeirah Village Circle, Business Bay, and Dubai Marina have attracted substantial Indian investment, offering diverse price points and yield profiles.
Indian buyers should conduct thorough due diligence on property title deeds, service charge histories, and building maintenance records when purchasing in the Dubai secondary real estate market. Engaging registered real estate agents and conducting independent valuations through firms like ValuStrat or Knight Frank can help ensure fair pricing in the current high-demand environment.
Market Outlook And Future Trajectory
The World Bank projected 4.6% economic growth for Dubai in 2025, with non-oil sectors leading expansion and supporting continued real estate demand. Dubai’s population reached approximately 3.97 million, indicating demographic trends favorable to sustained property market growth.
Industry analysts expect the Dubai secondary real estate market to maintain momentum through 2026, though at moderated growth rates as new supply enters the market. Well-established communities with superior infrastructure and limited inventory are positioned to outperform emerging areas, according to Bayut analysis.
The shift toward secondary properties reflects market maturation, with buyers increasingly prioritizing quality, location, and immediate availability over speculative off-plan investments. This evolution suggests the Dubai secondary real estate market has transitioned from a niche segment to a cornerstone of the emirate’s property ecosystem.
As Dubai approaches the final quarter of 2025, the secondary segment’s sustained outperformance underscores fundamental changes in investor behavior and market dynamics. While correction risks exist, underlying demand drivers—including population growth, economic diversification, and global capital inflows—continue supporting the Dubai secondary real estate market’s long-term trajectory.
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