The Dubai real estate sector continued its strong momentum in the third quarter of 2025, achieving a total of AED138.3 billion ($37.7 billion) in transactions across 56,015 sales. This performance underscores Dubai’s enduring investor confidence and resilience amid global market fluctuations.
Although total transaction value declined by 6.4% compared to the previous quarter, the sales volume increased by 11.4%, demonstrating consistent market strength and rising appetite for residential assets.
Apartments Drive Market Performance
Apartment transactions dominated Dubai’s residential landscape, setting a new record with sales worth AED93 billion ($25.3 billion). The total number of apartment deals surged 22% to 48,646 units, largely fuelled by a 35% quarter-on-quarter increase in off-plan purchases.
Off-plan properties accounted for 70% of total sales volume and 59% of total value, both representing historical peaks. This surge reflects strong investor confidence in Dubai’s future developments and the city’s expanding portfolio of new project launches.
Villas Take a Breather After Rapid Gains
After an exceptional run in the first half of the year, villa and townhouse sales experienced a 30% decline in volume and a 34% drop in value during Q3. Industry analysts view this slowdown as a natural correction following a prolonged rally, noting that many developers paused new launches and buyers became more discerning.
Despite the moderation, demand for spacious family homes remains steady in Dubai’s established lifestyle communities, highlighting the sector’s long-term stability.
Market Transition: Selective Growth Over Broad Expansion
Dubai’s residential property market continues to evolve through measured growth rather than uniform expansion. On a year-on-year basis, both value and volume rose 18%, reaching 56,015 transactions worth AED139.7 billion ($38 billion), driven primarily by off-plan developments.
Experts note a decisive shift in demand toward new apartment supply, with apartment sales climbing 28% year-on-year. In contrast, villa and prime segment activity slowed 48% quarter-on-quarter, suggesting a brief pause following an extended upswing rather than a market reversal.
Prices Reach Historic Highs
Average residential property prices climbed to AED1,664 per sq ft, almost double the rates recorded in 2020. The 5.2% quarterly increase was supported by strong end-user demand, healthy liquidity in the mid-market, and global monetary easing particularly the U.S. Federal Reserve’s 25-basis-point rate cut, which improved affordability for international buyers.
Dubai’s housing supply continues to grow at a sustainable pace, with over 28,500 new units delivered in 2025 so far and a pipeline exceeding 200,000 units expected by 2027. Apartments represented 85% of Q3 completions, concentrated mainly in Jumeirah Village Circle, Business Bay, and Town Square all popular mid-income districts with consistent leasing demand.
Rental Market Remains Strong
Rental values maintained an upward trajectory, with average annual rents reaching AED196,000 ($53,380). Apartments constituted the majority of leasing transactions, reflecting the ongoing population inflow and the growing preference for affordable urban living.
Outlook: Sustainable Growth Ahead
Looking ahead to the final quarter of 2025, Dubai’s property market is expected to sustain its steady upward path. Continuous population growth, large-scale infrastructure investments, and persistent global investor interest remain key growth drivers.
Dubai’s property sector stands out as one of the world’s most dynamic and resilient markets, underpinned by investor confidence, economic diversification, and strong urban development fundamentals.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-property-market-hits-37-7bn
