Dubai Real Estate Report: Q3 2025 Sales Hit $37.6B as Demand Surges

DUBAI, UAE – October 21, 2025: Dubai’s residential real estate market remained resilient in the third quarter of 2025, with 56,015 transactions valued at $37.6 billion (AED 138.3 billion), according to Betterhomes’ latest report, Shaping Skylines: Dubai Residential Market Report Q3 2025. While total transaction value dipped 6.4% quarter-on-quarter, sales volumes surged 11.4%, underscoring continued demand and investor confidence across key market segments.

Apartments Lead Market Momentum

Apartments continued to dominate activity, with sales totaling $25.3 billion (AED 93 billion), the highest value ever recorded in Dubai’s residential market. Volumes climbed 22% to 48,646 units, fueled largely by a 35% quarter-on-quarter increase in off-plan apartment sales. Off-plan transactions accounted for 70% of total volume and 59% of value, both record highs, signaling robust investor confidence and the city’s expanding development pipeline.

Villas and Townhouses Enter a Rebalancing Phase

Following an exceptional start to the year, villa and townhouse transactions eased 30% quarter-on-quarter, with total value down 34% as launches paused and buyers turned selective. However, demand for family homes remains healthy, particularly in established and lifestyle-focused communities, suggesting a measured recalibration rather than a downturn.

“Dubai’s property market is experiencing selective ascent rather than straight-line growth,” said Louis Harding, CEO of Betterhomes. “Sales volume and value rose 18% year-on-year, reaching 56,015 transactions worth AED 139.7 billion, anchored by off-plan sales. Demand is tilting decisively toward new supply, particularly apartments, where deals jumped 28% year-on-year. By contrast, villas cooled and prime transactions eased 48% quarter-on-quarter, suggesting a moment of pause rather than panic.”

Record Prices and Expanding Supply

Dubai’s average residential price reached a record AED 1,664 per sq ft, nearly double 2020 levels. Prices rose 5.2% during the quarter, driven by mid-market liquidity, strong end-user demand, and improved affordability following the U.S. Federal Reserve’s 25-basis-point interest rate cut. More than 28,500 new units have been delivered in 2025 so far, with over 200,000 additional handovers expected by 2027. Apartments made up 85% of completions in Q3, led by Jumeirah Village Circle, Business Bay, and Town Square.

Inside Betterhomes’ Metrics

Betterhomes itself reported a 24% year-on-year increase in transactions and 38% growth in sales leads. Townhouses led the firm’s growth, up 91% YoY, followed by 12% for villas and 5% for apartments. Investor activity accounted for 63% of total buyers, reaffirming Dubai’s global investment appeal.

In the rental sector, leasing transactions rose 92% year-on-year and 29% quarter-on-quarter, with average annual rents reaching AED 196,000 ($53,400) — reflecting continued strength in both residential ownership and leasing markets.

Steady Momentum Ahead

As Dubai moves into the final quarter of 2025, market fundamentals remain solid. Population growth, infrastructure expansion, and sustained global investor interest continue to position Dubai as one of the world’s most dynamic and resilient property markets.