The Dubai real estate sector maintained impressive momentum through the third quarter of 2025, with both residential and commercial markets demonstrating sustained strength. This performance was driven by a growing population, a robust economy, and heightened investor confidence, according to the latest Real Estate Market report.
Over 50,000 residential units were sold during the quarter, while office rents surged 35% year-on-year, a clear indication of Dubai’s enduring appeal to both occupiers and investors.
Residential Sector: Record-Breaking Demand
Dubai’s residential market continued to post exceptional results in Q3 2025, bolstered by steady population inflows, increasing expatriate ownership, and the migration of high-net-worth individuals seeking stability and long-term investment value.
Transaction activity exceeded 50,000 for the second quarter in a row, surpassing historical averages. Apartments accounted for a significant 86% of all transactions, rising from 75% in Q1, while off-plan deals made up 69% of total sales, underlining strong confidence in future project deliveries.
A real estate expert commented that Dubai’s residential segment is attracting a broad range of buyers from end-users prioritizing lifestyle and community to investors seeking solid returns within a transparent regulatory framework. The growing preference for ownership highlights Dubai’s evolution into an established, family-oriented global city.
Luxury Segment and New Supply
Average prices per square foot reached new highs for both villas and apartments, supported by high-end developments across major master communities. In the premium segment, approximately 1,500 transactions exceeded AED 10 million ($2.72 million), with villas contributing nearly three-quarters of those deals.
During Q3 2025, around 8,500 new residential units were completed, bringing total completions for the year close to 30,000 in line with 2024 levels. The Real Estate Market report projects that more than 250,000 additional units will be delivered by 2028, reflecting a strong and well-distributed development pipeline.
Office Sector: Rents Surge Amid High Demand
Dubai’s office market maintained its positive trajectory in Q3 2025, supported by the emirate’s expanding non-oil economy and the steady arrival of new businesses. Average office rents reached AED 233 per sq ft ($63.4) marking a 4.5% quarterly rise and a 35% annual increase.
Leasing activity remained strong even during the typically slower summer months, with expansion, relocation, and new market entrants driving the majority of transactions. Technology, media, and pharmaceutical firms accounted for the largest share of activity, followed by consulting and energy companies.
An expert noted that Dubai’s office segment continues to outperform expectations, fueled by limited availability of Grade A spaces and sustained corporate confidence. New formats such as branded offices and strata-led developments are redefining the commercial landscape.
Developers plan to deliver roughly 1 million sq ft of new office space between late 2025 and early 2026, much of which has already been pre-leased a strong indication of forward demand. Notable developers, including Rove Hotels, Danube, and Capital One, are also introducing projects tailored to SMEs and fractional ownership investors.
Economic and Demographic Drivers
The report also highlights significant macroeconomic indicators supporting real estate demand. Dubai’s population exceeded 4 million during the third quarter, while the UAE’s GDP growth for 2025 is projected at 4.7%, reinforcing the emirate’s position as a regional business hub.
Population expansion remains a key market driver, with forecasts suggesting 5 million residents by 2030. The UAE continues to attract global wealth, with Henley & Partners estimating that 9,800 millionaires are set to relocate to the country in 2025 alone.
Outlook: Sustained Confidence Ahead
According to the Real Estate Market report, Dubai’s property sector is expected to maintain strong fundamentals through the remainder of 2025. The office market is projected to record moderate rental growth as new Grade A spaces enter the supply pipeline, while residential demand will stay robust underpinned by lifestyle advantages, investor optimism, and continued economic diversification.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-50000-homes-sold-and-office-rents-soar-35-in-q3
