By: Olga Bekhteneva

Hermes Real Estate

Off-Plan Boom and Secondary Market

Dubai’s real estate market closed August 2025 with AED 50.7 billion in transactions—a 15% rise in volume and a 7% increase in value compared to last year. The real story for investors? Off-plan sales are surging, while the secondary market is holding steady, creating multiple entry points for different investment strategies.

Off-Plan Market: The Engine of Growth

• 25% increase in off-plan volumes year-on-year.
• AED 4.1 billion in secondary off-plan sales across nearly 2,000 deals, up 59% in volume and 69% in value versus August 2024.
• Primary off-plan transactions made up 91% of Dubai’s primary sales activity.

Investor takeaway: The off-plan segment continues to dominate, driven by attractive payment plans, developer incentives, and high rental demand once projects hand over. Early entry into well-located off-plan projects can yield double-digit capital appreciation before completion.

Secondary Market: Stability With Upside

• AED 22.6 billion in transactions across 6,458 deals.
• 15% annual growth in value and 7% in volume, proving resale demand remains strong.
• Wadi Al Safa 4 stood out, jumping from AED 26 million in August 2024 to AED 786 million in 2025.
• Al Barsha South Fourth also shined, with sales value up 154% and volumes rising 142%.

Investor takeaway: Established communities are delivering consistent resale value, while emerging neighborhoods offer steep growth potential. Investors seeking liquidity may prefer secondary assets with proven demand.

Hotspots to Watch

• Business Bay: 11% of Dubai’s total transactions, with volume up 377% and value up 290% year-on-year.
• Dubai Investment Park: Contributed 9% of overall volume and value.
• Wadi Al Safa 4: Secondary market leader, highlighting how “up-and-coming” areas can outperform the market average.

Investor takeaway: Neighborhood-level performance varies widely. Smart investors should target areas with strong infrastructure growth and rising end-user demand.

Demand Shift: Small Units in the Spotlight

Apartments dominate demand:

• 80% of rental searches.
• 59% of buyer interest.
• Studios = 22% of rental searches, 16% of buyer demand.
• One-bedrooms = 40% of rental demand, 36% of buyer searches.

Investor takeaway: Smaller units offer the best balance of affordability and rental yield. With tenants shifting to ownership to counter rising rents, studios and one-bedrooms will remain highly liquid assets.

Risks to Watch

• Oversupply: With 60,000+ units launched in 2025, investors should monitor potential pricing pressure.
• Developer Execution: Delays or quality issues could impact off-plan ROI. Partnering with reputable developers is key.
• Market Cooling: Rental growth is moderating in some prime areas, which may affect high-end yields.

Mini Case Study: Business Bay’s Surge

In 2024, an investor purchasing a one-bedroom off-plan in Business Bay for AED 1.3M could now see comparable units selling above AED 1.8M – a nearly 40% gain in under a year. Strong infrastructure upgrades and sustained demand transformed the area into one of Dubai’s top-performing submarkets.

The Bottom Line

Dubai’s real estate market is firing on all cylinders: off-plan for fast growth, secondary for stability, and smaller units for liquidity and rental yield. With hotspots like Business Bay and Wadi Al Safa 4 outperforming, investors who move early can capture outsized returns.

If you’re ready to position yourself for Dubai’s next growth wave, now is the time to explore off-plan opportunities and high-demand communities. Connect with us to identify projects that align with your investment strategy.

📞 Phone: +971 50 515 6616
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📧 Email: www.hermesre.ae