Dubai Real Estate Market Posts 10% Annual Growth Despite August Dip

Dubai, UAE – September 2025 - Dubai’s residential property market remained strong in August, showing 10% year-on-year growth despite the usual seasonal slowdown, according to the latest report from Betterhomes.

Both investors and end-users continue to fuel growth across apartments, villas, and townhouses, with prices and rental trends demonstrating resilience.

Steady Sales with Seasonal Adjustment

Sales activity slowed slightly in August, with 17,710 transactions, down 5.9% from July. The total value of deals fell 18.6% month-on-month to $11.44 billion (AED 42 billion).

However, compared to August 2024, both transaction volumes and values rose 10%, highlighting the market’s ongoing strength.

The average sales price per square foot edged up 2.1% to AED 1,932, showing that while monthly figures may fluctuate, the long-term upward trend remains intact.

“August reminded us that confidence in Dubai’s property market runs deep. The 10% year-on-year growth in transaction value indicates that Dubai remains a magnet for both investors and families. Even as sales activity eased slightly, prices still rose to AED 1,932 per square foot. At Betterhomes, we saw an 11% increase in buyer enquiries, a clear signal that market confidence endures,” said Cristopher Cina, Director of Sales at Betterhomes.

Off-Plan Projects Drive Demand

Off-plan developments dominated the market, accounting for 73% of all transactions, underscoring buyer appetite for future projects and long-term investment potential.

Binghatti, EMAAR, and Sobha Group led in total off-plan sales value.

Apartment sales remained the top choice among buyers:

• 46.6% of all apartment transactions were for one-bedroom units.

For villas and townhouses, demand focused on family-sized homes:

• 46.3% of villa buyers opted for four-bedroom layouts.

Betterhomes also reported an 11% increase in buyer leads, with investors making up 59% of buyer profiles, while end-users accounted for 41%. Financing was the preferred method of purchase, with mortgage-backed deals comprising 58% of transactions.

Rental Market Strengthens with Fresh Move-Ins

Dubai’s rental market also saw a boost, with 41,504 total leasing transactions in August, up 5.7% month-on-month.

New contracts surged to 18,186, representing 44% of total activity, compared to 40% in July. Renewals made up 56% of contracts, reflecting a healthy balance between new leases and tenant retention.

On a yearly basis, leasing volumes dipped 10%, a natural adjustment reflecting renewal cycles.

Rental price highlights:

• Jumeirah villas: up 4.2% to an annual average of $146,800 (AED 539,000).
• Mirdif apartments: up 5.5% to $23,980 (AED 88,000) annually.

Tenant enquiries rose 38% month-on-month at Betterhomes, led by apartments (47%) and townhouses (32%). Flexible payment plans remained popular, with one-cheque and four-cheque payments accounting for 30% and 32% of rentals, respectively.

“August was a month of fresh starts. Nearly half of all leasing activity came from new contracts, showing that many people are choosing to make Dubai their home. Tenant leads at Betterhomes rose 38%, proving demand is not only resilient but expanding,” said Rupert Simmonds, Director of Leasing at Betterhomes.

Most Popular Communities in August

Top areas for apartment buyers:

• Dubai Marina
• Business Bay
• Jumeirah Village Circle

Top areas for villa buyers:

• Arabian Ranches
• Dubai Hills Estate
• Jumeirah Golf Estates

Dubai’s real estate market continues to demonstrate robust fundamentals. Despite a slower August, annual growth of 10%, rising prices, and increasing demand for both sales and rentals signal strong investor confidence and sustained momentum heading into the final quarter of 2025.