Despite the traditionally quiet summer period, Dubai’s real estate sector achieved one of its strongest performances ever in the third quarter of 2025. The market continued its impressive growth momentum, reflecting global confidence in the city’s property landscape.
Surging Sales and Market Maturity
According to Engel & Völkers Middle East, commercial property transactions surged by 31%, while residential sales climbed 22.7% year-on-year. These figures underline Dubai’s evolution into one of the world’s most stable and mature real-estate markets, supported by consistent investor trust, population growth, and long-term end-user demand.
“Dubai’s property market has reached a new level of maturity,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “We’re seeing not just speculative buyers, but people choosing to make Dubai their permanent home — a place to build their future.”
Residential Sector: Off-Plan Dominance and Luxury Growth
With the city’s population now exceeding four million residents, demand remains high across both residential and commercial segments.
Off-plan developments accounted for around 70% of all housing transactions. Apartments led the activity, representing 87% of total sales, with 47 705 units sold for AED 91.4 billion — a 26.4% annual increase.
The luxury segment remained strong, recording 1 388 sales valued above AED 10 million, marking the second-best quarter ever. Notable deals included an AED 173.6 million apartment at Aman Residences in Jumeirah and a AED 350 million off-plan villa in Jumeirah Asora Bay.
Expanding Investment Horizons
New communities such as Dubai Science Park, Damac Riverside, and DLRC are attracting investors for their long-term potential. Meanwhile, established hotspots like Downtown Dubai, Dubai Marina, and Jumeirah Beach Residence remain active centers for resale transactions.
Rising rents and a greater sense of permanence among expatriates are encouraging many to move from renting to ownership, especially families and professionals seeking long-term stability in the UAE.
Commercial Sector: Record Office Demand
The commercial property sector mirrored this success, with 3 418 transactions worth AED 30.4 billion, up 31% from last year.
All asset classes saw double-digit growth — buildings (+50%), retail (+37%), offices (+45%), and land (+38%).
Ras Al Khor recorded large-scale land deals worth AED 2.9 billion, while Business Bay led with AED 3.4 billion in agreements.
The office market was a standout, with 1 151 office sales totaling AED 3.1 billion — nearly double 2024’s value. Off-plan office transactions jumped from 69 to 389 year-over-year, reflecting investor confidence in Dubai’s evolving business landscape.
Economic Outlook: Strong Foundations for 2026
The IMF forecasts UAE GDP growth of 4.8% in 2025 and 5% in 2026, supported by diversification, fiscal stability, and foreign investment. With low inflation and possible rate cuts ahead, the property market is expected to gain further momentum.
A City of Enduring Value
Engel & Völkers expects continued growth across residential and commercial sectors in the final quarter of 2025.
“Dubai has shown that sustainable growth is now part of its DNA,” said Hadi. “It’s no longer just a city for investment — it’s a city of belonging, ambition, and enduring value.”
