Dubai’s residential real estate market closed 2025 on a strong note, recording AED 541.3 billion ($147.39 billion) in total transaction value across 200,779 property sales. Compared to 2024, this represents a 27% year-on-year increase in value and a clear rise in transaction volume, a key indicator of sustained market demand.
Rather than being driven purely by price appreciation, the growth reflects broader participation across buyer segments, supported by population growth, long-term residency incentives, and continued confidence in Dubai’s property fundamentals.
Off-plan properties continue to lead market activity
Off-plan sales remained the dominant force in Dubai’s residential market throughout 2025. A total of 138,992 off-plan transactions were recorded, accounting for the majority of sales activity. This highlights ongoing buyer appetite for new developments, flexible payment structures, and long-term capital appreciation opportunities.
Meanwhile, the ready and secondary market contributed approximately 32.5% of total residential transaction value. While this segment represented fewer transactions, it played a crucial role in maintaining pricing stability, particularly in mature and well-established communities where demand is driven by end-users and income-focused investors.
The balance between off-plan growth and secondary market stability reflects a structurally healthy market rather than one reliant on short-term speculation.
Volume-driven communities versus value-led locations
Transaction volumes in 2025 remained concentrated in high-activity, mid-market communities, including Jumeirah Village Circle (JVC), Business Bay, and Dubai South. These areas continue to attract strong demand due to relative affordability, established infrastructure, and consistent rental absorption.
In contrast, prime and waterfront locations accounted for a disproportionately higher share of transaction value. Areas such as Palm Jumeirah, Palm Jebel Ali, Dubai Hills Estate, Dubai Creek Harbour, Dubai Maritime City, and Sobha Hartland II recorded fewer sales overall but significantly higher average prices per transaction.
This split between volume and value illustrates a diversified market structure:
- Mid-market areas drive liquidity and rental yields, while
- Prime locations support capital values and long-term wealth preservation.
Population growth and buyer profile support market resilience
Dubai’s continued population growth remained a fundamental driver of housing demand in 2025, translating into sustained interest in both ownership and long-term investment. Demand was particularly strong for villas, townhouses, waterfront residences, and branded homes, where supply remains limited relative to buyer interest.
Buyer composition also supported market stability. Cash transactions accounted for a significant share of residential purchases, especially in established and prime communities. This reduced the market’s exposure to global interest rate fluctuations and contributed to higher transaction completion rates.
End-users and long-term investors remained the dominant buyer groups, reinforcing longer holding periods and limiting speculative turnover.
Commercial real estate activity remains solid
Alongside residential growth, Dubai’s commercial real estate sector recorded AED 135.1 billion in transactions across 12,850 deals in 2025. Offices represented the largest share of transaction value, followed by land, hotel apartments, retail, and industrial assets reflecting steady business expansion and corporate demand across key economic zones.
Outlook for 2026
Dubai’s real estate market enters 2026 with strong transactional momentum, supported by population inflows, a diversified buyer base, and sustained demand across residential and commercial sectors. While price growth has moderated compared to earlier expansion phases, transaction volumes and values suggest continued confidence in the market’s long-term fundamentals.
Looking ahead, activity is expected to remain supported by long-term residency programs gradual absorption of new supply, and consistent demand in both established communities and prime locations reinforcing Dubai’s position as one of the region’s most resilient and globally competitive real estate markets.
