Dubai’s real estate sector continued its upward trajectory in the third quarter of 2025, registering a 22.7% year-on-year growth in residential transactions. Total property sales reached approximately $24.9 billion for homes and $8.3 billion in commercial assets, as per a recent market analysis.
The strong performance reinforces Dubai’s position as a global real estate hub, underpinned by investor confidence, a growing end-user base, and a population now surpassing four million residents.
A real estate analyst noted, “Dubai’s property market has entered a phase of sustained maturity. We’re witnessing not only investor activity but long-term residents choosing to establish their futures here professionally and personally.”
Off-Plan Dominance
Off-plan developments continued to lead the residential landscape, representing around 70% of total sales. Meanwhile, resale transactions remained healthy across well-established communities where available inventory is tight and lifestyle offerings are highly desirable.
Apartment Sales and Luxury Segment
Apartments accounted for 87% of total residential deals, with 47,705 units sold, generating AED 91.4 billion ($24.9 billion) a 26.4% annual increase.
The luxury housing sector also retained its resilience, with 1,388 properties sold above AED 10 million ($2.7 million), marking the second-highest quarterly performance on record.
Notable transactions included an AED 350 million ($95.3 million) off-plan villa in Jumeirah Asora Bay and an AED 173.6 million ($47.3 million) apartment at Aman Residences, Jumeirah.
Buyer Trends and Hotspots
Emerging areas such as Dubai Science Park, Damac Riverside, and DLRC attracted strategic investors seeking long-term appreciation potential. In contrast, established zones like Downtown Dubai and Dubai Marina continued to dominate the resale market.
An increasing number of residents are transitioning from renting to owning property, driven by rising rental costs and a growing sense of permanence among expatriates and professionals.
Commercial Property Market
The commercial sector mirrored residential momentum, registering 3,418 transactions valued at AED 30.4 billion ($8.3 billion) a 31% year-on-year increase.
Sectoral Growth
All categories within the commercial space experienced double-digit expansion: Offices: +45%, Retail: +37%, Land: +36.8%, Buildings: +50%. Business Bay led the market with AED 3.4 billion ($925 million) in transactions, while Ras Al Khor followed with AED 2.9 billion ($789 million), mainly from large-scale land deals.
Strong Office Demand
The office segment showed exceptional strength, with 1,151 office units sold for AED 3.1 billion ($844 million) nearly double the figures from the previous year.
Off-plan office sales rose sharply from 69 in Q3 2024 to 389 in Q3 2025, reflecting a robust appetite for modern, sustainable, and strategically located workspaces.
An expert commented, “This surge in off-plan office investments underscores confidence in Dubai’s evolving business landscape and its readiness for future corporate expansion.”
Economic Outlook
Dubai’s economic fundamentals remain strong, backed by the IMF’s forecast of 4.8% GDP growth in 2025 and 5% in 2026 for the UAE. Continued diversification, financial discipline, and inflows of foreign capital are expected to sustain momentum.
With inflation under control and potential interest rate cuts on the horizon, the property market is poised for further expansion in both residential and commercial sectors as the year concludes.
A market expert summarized, “Dubai has evolved into a city of permanence and opportunity. It is no longer defined solely by investment returns it represents a lifestyle, a vision, and a lasting value proposition.”
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-boom-continues-with-1388-luxury-deals-over-2-7m-in-q3
