Dubai Real Estate Defies Summer Slowdown with Strong Q3 Gains

Dubai, UAE – October 15, 2025: Dubai’s real estate market continued to outperform expectations through the summer months, traditionally a quieter period for property activity. According to Engel & Völkers Middle East, the emirate recorded a 22.7% year-on-year increase in residential transactions and a 31% surge in commercial sales value during the third quarter of 2025, reaffirming its position as one of the world’s most resilient and dynamic real estate markets.

The strong quarterly performance reflects rising investor confidence, a population now exceeding four million, and a sustained appetite from both local and international buyers seeking long-term stability in a globally connected city.

Residential Market: Off-Plan Dominates Amid Rising Homeownership

Dubai’s off-plan sector once again led the market, accounting for nearly 70% of all residential sales. Buyers continue to favor future-ready developments offering flexible payment structures and long-term appreciation potential.

In total, 47,705 apartments and villas were sold for a combined USD 24.9 billion (AED 91.4 billion), representing a 26.4% increase over the same period last year. Apartments made up 87% of total residential transactions, underscoring their enduring appeal to both investors and end-users.

The luxury segment also remained robust, with 1,388 transactions above USD 2.7 million (AED 10 million), the second-strongest quarter ever recorded. Among the standout deals were an off-plan villa in Jumeirah Asora Bay for USD 95.3 million (AED 350 million) and an apartment in Aman Residences, Jumeirah, for USD 47.3 million (AED 173.6 million).

Emerging communities such as Dubai Science Park, Damac Riverside, and DLRC gained traction with investors looking for value and long-term growth potential, while the secondary market remained active in established areas like Dubai Marina, Downtown Dubai, and Business Bay.

A growing shift toward homeownership among residents and expatriate professionals continues to underpin demand, fueled by rising rental prices and a desire for greater permanence and financial stability.

Commercial Market: Institutional Confidence Fuels Broad-Based Growth

The commercial property sector mirrored the residential boom, with 3,418 transactions totaling USD 8.3 billion (AED 30.4 billion), a 31% annual rise. All key asset classes registered strong double-digit growth:

Office sales up 45%
Retail transactions up 37%
Land sales up 36.8%
Building sales up 50%

Business Bay led the market with USD 925 million (AED 3.4 billion) in deals, followed closely by Ras Al Khor with USD 790 million (AED 2.9 billion), driven largely by major land transactions.

The office segment stood out with 1,151 units sold for USD 844 million (AED 3.1 billion) — nearly double the total from last year. Off-plan office transactions also spiked from 69 in Q3 2024 to 389 in Q3 2025, signaling a growing appetite for modern, sustainable workspaces aligned with Dubai’s evolving business landscape.

Solid Fundamentals Support Continued Expansion

Dubai’s real estate growth is underpinned by a strong macroeconomic backdrop. The International Monetary Fund (IMF) projects UAE GDP growth of 4.8% in 2025 and 5% in 2026, driven by diversification, fiscal stability, and increased foreign investment inflows.

Low inflation and anticipated interest rate cuts are expected to further stimulate demand across residential, commercial, and off-plan segments, extending Dubai’s strong momentum into 2026.

Sustained Growth and Market Maturity

Looking ahead, Engel & Völkers anticipates that both the residential and commercial markets will continue their upward trajectory, supported by demographic expansion and evolving investor preferences. “Dubai’s property market has reached a new level of maturity,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “We’re seeing not just investor activity, but long-term commitment from people who view Dubai as home — a place to build their lives, careers, and legacies.”

He added, “Dubai has demonstrated that sustainable growth is now embedded in its DNA. It is no longer just a city for investment; it is a city of belonging, ambition, and enduring value.”