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Dubai Secondary Property Market 2025: Villas and Townhouses Lead the Way
The Dubai secondary property market has delivered an exceptional performance in the first half of 2025, surpassing expectations and outperforming the off-plan sector across several key indicators. Strong demand for ready family homes, particularly villas and townhouses, coupled with limited supply, continues to fuel price growth and record-breaking sales activity.
As the market heads into the second half of the year, momentum shows no signs of slowing. However, industry experts caution that some sellers have begun to inflate prices beyond sustainable levels—a trend that could lead to a mild correction later this year.
Record Growth in Dubai’s Secondary Property Market
According to leading real estate brokerage Allsopp & Allsopp, the total value of transactions in the secondary property segment surged by 46% year-over-year in the first six months of 2025. By comparison, Dubai’s off-plan segment recorded a 25% increase during the same period.
Average sales prices further highlight this divergence:
- Secondary properties saw a 15% rise in average prices.
- Off-plan units increased by just 5%.
This shift signals that buyers, particularly end-users and investors seeking immediate utility, are increasingly drawn to ready, high-quality inventory rather than waiting for future handovers.
What’s Driving the Surge in Secondary Sales?
1. Strong Buyer Demand for Family Homes
Dubai’s population growth, coupled with lifestyle-driven relocations, has made villas and townhouses the most sought-after property type. These homes not only offer space and privacy but also align with the preferences of families seeking long-term residences.
2. Limited Supply of Ready Villas
New villa and townhouse deliveries remain scarce. This supply shortage has pushed buyers toward the secondary market, where renovated or turnkey homes are increasingly viewed as valuable assets.
3. Investor Confidence in Dubai Real Estate
High-net-worth individuals and global investors continue to choose Dubai, not just for its lifestyle advantages but also for its capital appreciation potential. The city’s tax-friendly environment and strong economic fundamentals add to the appeal.
As Lewis Allsopp, Chairman of Allsopp & Allsopp, noted:
“We’ve seen a significant shift in buyer focus toward the secondary market. Wealthy buyers are choosing Dubai not just for its lifestyle but also for long-term investment returns. The villa and townhouse segment, in particular, shows the greatest strength.”
Market Composition: Apartments vs. Villas
While apartments accounted for 78% of secondary transactions by volume in the first half of 2025, the real story lies in villas and townhouses. Though they represented only 22% of transactions, their price growth and transaction values far outpaced apartments.
This clear imbalance between volume and value emphasizes the premium buyers are willing to pay for family-oriented, ready-to-move-in homes.
Rising Prices and Seller Behavior
Despite the positive momentum, some insiders have raised concerns about unsustainable pricing strategies.
Murtaza Hashmi, CEO of MH Developers, warned:
“There’s a lot of greed from sellers—many are demanding more than what the property is actually worth. As a result, we’re likely to see some correction in the secondary market later this year. This won’t affect the off-plan segment, but it will be a healthy adjustment for secondary sales.”
This trend highlights a risk for buyers, particularly those entering the market without expert guidance. While demand remains robust, inflated asking prices may slow down certain segments, potentially leading to short-term price corrections that stabilize long-term growth.
Premiums for Renovated and Turnkey Homes
One defining trend in 2025 is the rise of renovated and upgraded homes in Dubai’s secondary market. Buyers are increasingly willing to pay significant premiums for modernized, turnkey villas and townhouses that offer immediate livability.
According to Allsopp & Allsopp:
“Turnkey, move-in-ready homes are becoming increasingly popular with both end-users and investors, as they provide immediate utility and strong returns.”
This shift has spurred a surge in property upgrades, with refurbished homes achieving strong resale values and often selling faster than unrenovated properties.
Momentum Across Price Segments
The growth of the Dubai secondary property market has been strong across different pricing tiers:
- Dh5 million–Dh10 million range: Transactions rose by 50% in the first half of 2025.
- Ultra-luxury segment (above Dh10 million): Volume surged by a remarkable 113%, underscoring the city’s growing appeal among ultra-wealthy buyers.
These figures reflect Dubai’s ability to cater to both upper-middle-tier family buyers and global investors seeking trophy assets.
Outlook for the Remainder of 2025
Industry professionals remain optimistic about the market’s performance in the second half of the year. With demand continuing to outpace supply—particularly in the villa and townhouse segment—prices are expected to remain under upward pressure.
Key drivers for the months ahead include:
- Persistent demand for family homes, particularly villas in established communities.
- Ongoing scarcity of new ready inventory, which shifts focus to resale properties.
- Strong investor confidence, both from local and international buyers.
- Potential price corrections in overvalued listings, leading to a healthier, more sustainable market.
For investors, this environment presents both opportunities and challenges. Those who identify fairly priced properties in high-demand communities stand to benefit significantly from continued appreciation. However, partnering with experienced real estate professionals, like OPlus Realty, is essential to navigate inflated asking prices and uncover hidden opportunities.
Final Thoughts
The Dubai secondary property market in 2025 is stronger than ever, with villas and townhouses driving growth and reshaping buyer preferences. While apartments still dominate transaction volume, it is clear that the family-home segment leads in value, demand, and price appreciation.
Despite concerns about “greedy” pricing strategies, the underlying fundamentals remain robust. Dubai continues to attract global buyers seeking lifestyle, stability, and long-term growth potential. For those considering entry into the secondary market, the key is to act strategically—choosing the right properties in the right locations with the guidance of trusted experts.
At OPlus Realty, we specialize in helping investors and families unlock opportunities in Dubai’s most desirable communities, ensuring both value and peace of mind in every transaction.
