Dubai’s off-plan property market reached a historic milestone in Q3 2025, with approximately 42,000 units sold, making up 76% of all residential sales, according to the Dubai real estate market report. The total value of these transactions climbed to AED 138 billion, representing a 24% increase compared to the same period last year.
Developers Shorten Construction Cycles
The report highlights that developers are significantly speeding up project timelines to meet rising demand. The average development cycle has dropped to 880 days, down from 1,340 days in 2023, reflecting the industry’s accelerated approach to launching and completing projects.
The report states that while this rapid pace underscores strong market confidence, it also prompts consideration around long-term delivery capacity and the sustainability of such accelerated growth.
Supply Pipeline and Deliveries
Approximately 9,400 residential units were handed over in Q3, slightly trailing earlier projections. However, the future supply outlook remains strong, with the pipeline expanding to 366,000 units scheduled for completion by 2028, as detailed in the Dubai real estate market report.
Price and Rental Market Trends
The report notes that average property prices increased by 16% year-on-year, while rental rates rose by 11%. Although rents continue to rise, there are early indications that rental inflation may be stabilising after two consecutive years of sharp growth.
Continued Strength in the Luxury Segment
Sales of ultra-luxury homes priced above AED 50 million reached AED 5.9 billion in the third quarter, demonstrating sustained demand from high-net-worth and international buyers seeking premium assets.
Market Outlook
The strong performance in the off-plan segment reflects ongoing investor confidence driven by population expansion, favourable residency initiatives, and robust foreign investment activity.
According to the Dubai real estate market report, demand is expected to remain resilient into 2026. However, the substantial number of upcoming projects may gradually support a more balanced supply environment and ease pricing pressures over the next two years.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-off-plan-property-sales-hit-record-high-as-developers-fast-track-projects
