Dubai’s real estate market continued its remarkable upward trend in the third quarter of 2025, reaching AED 138 billion ($37.6 billion) in total residential transactions. This represents an 18 percent increase compared to the same period last year and reflects the city’s position as one of the world’s most dynamic property hubs.
More than 55,000 residential deals were completed in just three months, signaling the ongoing strength of buyer confidence and the appeal of Dubai’s lifestyle-driven developments.
Off-Plan Sales Lead the Boom
Off-plan properties — homes purchased before construction is complete — dominated the market, accounting for around 70 percent of total transactions. This is a sharp rise from earlier in the year and highlights investors’ optimism about long-term growth.
The strongest demand came from mid-to-upper segments priced between AED 5 million and AED 10 million. These projects offer a balance of affordability, design quality, and prime locations, attracting both local buyers and foreign investors seeking capital appreciation and lifestyle value.
Villas and Apartments See Continued Growth
Prices continued to climb across nearly all residential categories. Among villa and townhouse communities, twenty out of twenty-two registered price increases averaging 22 percent year-on-year. Limited supply in desirable neighborhoods kept competition strong.
Apartments followed a similar pattern, with prices rising by about 12 percent across most communities. However, analysts expect this pace to stabilize as new apartment deliveries account for nearly 85 percent of upcoming supply.
Rental Market Gains Balance
The influx of new apartments has begun to ease rental pressure in high-demand areas such as Dubai Marina, Jumeirah Beach Residence, and Jumeirah Lake Towers. Some tenants are now turning to emerging, more affordable communities like Jumeirah Village Circle, where value for money remains attractive.
This gradual rebalancing shows that Dubai’s property market is maturing. Instead of sharp fluctuations, it is moving toward a more stable environment driven by real demand rather than speculation.
Outlook Toward 2026
With strong population growth, steady investor inflows, and the emirate’s reputation as a global lifestyle destination, Dubai’s housing market shows no sign of slowing down. Villas are expected to maintain premium momentum due to constrained supply, while the apartment sector will see steady, sustainable growth supported by new development phases.
The dominance of off-plan transactions underlines long-term investor confidence. As more projects launch and handovers approach in 2026, Dubai’s real estate sector continues to set new benchmarks for stability, diversity, and global appeal.
