Dubai Real Estate Hits $37.6 Billion in Q3 2025 as Demand Stays Strong

DUBAI, UAE – October 17, 2025: Dubai’s residential property sector continued its upward trajectory in the third quarter of 2025, recording $37.6 billion (AED138 billion) in transactions across 55,280 sales, according to Espace Real Estate’s Dubai Residential Market Overview – Q3 2025. The figures represent an 18 percent year-on-year increase, reaffirming investor confidence and underscoring Dubai’s sustained real estate momentum.

John Lyons, Managing Director at Espace Real Estate, stated, “In Q3 2025, the Dubai residential market continued to demonstrate strength and depth, reflecting solid investor confidence and growing long-term demand. While overall activity remains high, we are seeing a more mature market dynamic take shape, one that is increasingly driven by end-user demand.”

Off-Plan Market Leads Momentum

Off-plan transactions dominated activity during the quarter, making up 70 percent of all residential sales—an increase from 59 percent in the first half of the year. This surge reflects continued investor optimism surrounding Dubai’s population growth, liquidity, and the strong launch cycle of new developments.

Family Homes Drive Demand

Espace’s report highlighted a growing behavioral shift among residents, with more buyers viewing Dubai as a permanent home rather than a transient destination. The $1.36–$2.72 million (AED5–10 million) price segment saw a 60 percent rise in transactions year-on-year, driven largely by demand for family-oriented villas and townhouses in established communities.

Price Growth Across Communities

Of the 34 villa and townhouse communities tracked, 31 reported price increases averaging 22 percent. Similarly, 11 of 12 apartment communities recorded average price growth of 12 percent. Villa prices have now risen nearly 29 percent year-on-year, while luxury districts like Palm Jumeirah and Jumeirah Islands saw gains exceeding 40 percent. Apartments in areas such as The Greens and Dubai Silicon Oasis grew by more than 20 percent, while Downtown Dubai continues to command the city’s highest prices.

Espace also reported a 148 percent surge in new property listings and a 77 percent increase in buyer registrations, highlighting both expanding supply and robust confidence among investors and end-users.

Market Maturity and Expanding Supply

The report noted Dubai’s increasingly balanced rental environment, with new apartment handovers slightly easing demand in prime areas like Dubai Marina, JBR, and JLT, while boosting affordability in districts such as Jumeirah Village Circle (JVC).

Looking ahead, Dubai is preparing for its largest property handover wave in more than a decade, with nearly 120,000 new units expected in 2026. Despite the influx, analysts anticipate continued stability supported by population growth—now surpassing 4 million residents, and strong liquidity, with 87 percent of Q1 2025 purchases made in cash.

As Lyons concluded, “Dubai’s market maturity is evident in its resilience and the growing preference for ownership. This is no longer just an investment market—it’s a city where people are choosing to build their lives.”