Dubai residential property market recorded more than 50,000 sales transactions in the third quarter of 2025 marking the second consecutive quarter to achieve this milestone, according to the latest Real Estate Market Report.
The sector’s momentum continues to be supported by strong population growth, economic resilience, and a rising number of affluent individuals relocating to the city. Data from the Dubai Statistics Centre confirmed that the emirate’s population surpassed four million in September.
Economic Outlook and Market Drivers
The latest forecast from Oxford Economics projects UAE GDP growth of 4.9% in 2025, signaling a positive backdrop for the real estate sector. Dubai’s tax-free environment, competitive mortgage options, and comparative affordability against major global hubs remain key factors attracting both investors and long-term residents.
Apartments dominated the market in Q3, representing 86% of all residential transactions, compared to 80% in the previous quarter and 75% in Q1. Off-plan properties continued to lead growth, accounting for 69% of total sales with nearly 37,000 transactions, while the ready market remained stable at over 16,500 transactions, consistent with the two-year quarterly average.
Top Performing Zones
Zone 6, which includes key communities along the Al Khail corridor such as Jumeirah Village Circle, Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, emerged as Dubai’s most active area, capturing 37% of total sales.
Zone 3, home to well-established neighborhoods like Dubai Marina, Emirates Living, and Al Barsha, followed with 29% of total transactions.
Supply and New Project Launches
Approximately 8,500 residential units were handed over in Q3, bringing the total completions for 2025 to 30,000 units, already equaling last year’s total. An additional 10,000 units are expected to be completed by the end of the year, signaling a healthy supply pipeline.
Noteworthy project deliveries included Viridian by Meraas in Al Wasl, Palace Residences by Emaar in Dubai Creek Harbour, and Ellington House by Ellington in Dubai Hills Estate.
The quarter also saw more than 10,000 new units launched, 97% of which were apartments. High-end developments such as Jumeirah Golf Estates Phase 2 continued to attract investors seeking premium, golf-course community living.
Prime Residential Segment
Dubai’s luxury housing market maintained its momentum following record-breaking figures earlier in the year. Around 1,500 prime transactions above AED 10 million ($2.7 million) were registered in Q3, including 500 off-plan deals.
Villas continued to dominate the high-end bracket, making up 73% of prime sales. This reflects sustained demand from affluent expatriates and confidence in Dubai’s long-term economic vision under the Dubai Economic Agenda (D33).
A real estate expert commented, “The third quarter of 2025 has once again set remarkable benchmarks for Dubai’s residential sector. While off-plan and apartment transactions have grown substantially, limited new villa supply continues to constrain activity in that segment. Interestingly, nearly all new launches this quarter were focused on apartments, highlighting developers’ strategic shift.”
Investor Sentiment and Price Trends
Average apartment prices remained steady at AED 1.9 million ($517,000), while the average villa price stood above AED 7 million ($1.9 million), reflecting a 24% increase compared to 2024.
Per-square-foot rates reached new highs across both categories, demonstrating ongoing investor confidence and a preference for premium, well-located communities.
According to a real estate expert, “Lifestyle quality and affordability continue to shape buying decisions. Established prime areas with strong amenities and educational infrastructure remain highly sought-after with as many as 25 new private schools opening in September alone.”
Future Outlook: Population Growth to Sustain Demand
The Real Estate Market Report anticipates continued stability and growth in the coming years. Dubai’s population is expected to reach five million by 2030, while nearly 9,800 millionaires are projected to relocate to the UAE in 2025 alone.
A real estate expert added, “Dubai’s residential market continues to show exceptional resilience, supported by strong economic fundamentals and steady demand from both investors and end users. As the city expands toward the five-million population mark, the market will likely see greater segmentation with mature neighborhoods retaining strength and emerging zones offering attractive opportunities for new buyers.”
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-property-sales-hit-50000-in-q3-as-population-passes-4m
