$11.55 billion worth of property transactions in August proves one thing: Dubai’s market is no longer just about renting, ownership is now the trend.

According to Engel & Völkers, August 2025 recorded 17,879 property deals worth AED42.4 billion ($11.55 billion), a 17% increase in volume and 12% in value compared to last year. What’s driving this surge? More residents are choosing to buy instead of rent, creating a golden window for investors.

Why This Matters for Investors

• Tenants are becoming buyers: A 22% jump in secondary market sales this year shows residents see Dubai as a long-term home, not a stopover.
• Family homes are hot: Sales of 4-bedroom villas rose 70% and 5-bedroom+ homes jumped 63% YoY, reflecting strong end-user demand.
• Capital appreciation is strong: Property prices hit AED1,664 per sq. ft., up 16.3% YoY. Communities like Dubai Hills and Arabian Ranches are seeing particularly sharp growth.
• Rental yields remain world-class: Despite price gains, Dubai still delivers an average yield of 6.76% with apartments at 7.12% (excellent for steady cash flow).

Compare this to global cities:

• London: 3–5%
• Singapore: 3–4%
• New York: 5–7%

Dubai comfortably leads.

Mini Case Study: From Tenant to Investor

Take Ahmed, a young professional renting in Jumeirah Village Circle. Last year, his rent rose by 15%. Instead of renewing, he bought a two-bedroom apartment with a mortgage. His monthly payments are now slightly lower than his old rent and the unit’s value has already appreciated 12%. Ahmed isn’t just saving on rent, he’s building wealth.

For investors, this tenant-to-owner migration means two things:

1. Resale demand is heating up from end-users like Ahmed.
2. Rental yields remain strong thanks to population growth and limited supply.

The Dual Market Advantage

Dubai is unique because it offers two parallel plays for investors:

• Off-plan projects: Still dominating with 74% of transactions, fueled by flexible developer payment plans and strong international demand.
• Secondary market: Surging on the back of residents buying ready homes for long-term stability.

Both tracks are delivering and both are expected to continue into Q4 2025.

Risks to Watch

• Slight cooling in leasing volumes (-4% YTD) as tenants shift to ownership.
• Luxury villa rental demand is softening, signaling a shift in strategy needed for high-end landlords.
• Mortgage dependency means interest rate changes could affect affordability.

Bottom Line: A Market Redefined

Dubai real estate isn’t just about short-term speculation anymore, it’s about wealth creation, stability, and lifestyle. With strong yields, rising values, and a population that’s buying instead of renting, investors have a rare chance to tap into a dual-growth cycle.

Now is the time to explore opportunities whether in off-plan projects with flexible terms or ready homes attracting end-users. If you’re serious about positioning yourself in Dubai’s evolving market, let’s connect and identify the best investment fit for your goals.