Dubai Real Estate Strong Growth Across Office and Residential Sectors

Dubai, UAE: Dubai’s real estate market continues to demonstrate remarkable resilience across both the office and residential sectors, according to Savills’ Q3 2025 “Dubai Market in Minutes” reports. The sustained growth is underpinned by strong economic fundamentals, population expansion, and robust investor confidence.

Office Sector Defies Expectations

Dubai’s office market maintained its upward trajectory through Q3 2025, supported by non-oil sector growth and steady demand from international firms. Average office rents climbed to USD 63 (AED 233) per sq ft, marking a 4.5% quarterly and 35% annual increase, despite limited new supply.

Leasing activity remained strong even during summer months, traditionally a slower period. Expansion, relocation, and new market entries dominated transactions, with technology and media and pharmaceutical sectors each contributing 29% of total activity, followed by consulting and energy firms at 14% each.

“Dubai’s office market continues to defy expectations, with strong leasing activity across both established and emerging submarkets,” said Toby Hall, Head of Commercial Agency, Middle East at Savills. “The combination of limited Grade A availability and sustained occupier confidence has maintained upward pressure on rents, while new developments such as branded and strata-led offices are reshaping future demand.”

Approximately 1 million sq ft of new office space is expected to be completed between late 2025 and early 2026, most of which is already pre-leased, reflecting high forward demand. Developers such as Rove Hotels, Danube, and Capital One have also introduced new office models targeting SMEs and fractional ownership investors.

Dubai’s population exceeded 4 million during the quarter, while the UAE’s GDP is forecast to expand 4.7% in 2025, reinforcing long-term demand for quality commercial real estate.

Residential Sector Extends Record Run

Dubai’s residential sector also maintained record-breaking performance in Q3 2025, driven by population inflows, rising expatriate homeownership, and continued migration of high-net-worth individuals (HNWIs).

Transaction volumes surpassed 50,000 for the second consecutive quarter, far above historical averages. Apartments accounted for 86% of total transactions, while off-plan sales represented 69%, underscoring investor confidence in new launches.

“Dubai’s residential market continues to attract a diverse pool of buyers, from end-users seeking long-term value to investors drawn by the emirate’s stable regulatory framework and global appeal,” said Andrew Cummings, Head of Residential Agency, Middle East at Savills. “The growing preference for homeownership reflects the city’s transition from a transient to an established, family-friendly market.”

Average prices per square foot hit new highs across both apartments and villas, driven by strong luxury project launches. Around 1,500 transactions exceeded USD 2.7 million (AED 10 million), with villas making up 73% of those deals. Q3 2025 also saw 8,500 new units delivered, bringing total completions for the year close to 30,000, mirroring 2024’s output. Over 250,000 units are expected to be delivered by 2028, indicating a healthy long-term pipeline.

Growth Built on Strong Fundamentals

Population growth remains a defining factor, with Dubai’s population projected to reach 5 million by 2030. Global wealth migration continues to strengthen demand, with Henley & Partners forecasting the arrival of 9,800 millionaires to the UAE in 2025.

Savills anticipates Dubai’s real estate market to retain its strong fundamentals through the remainder of 2025. The office sector is expected to see moderate rental growth as new Grade A projects complete, while the residential market will continue to benefit from population growth, lifestyle appeal, and investor confidence.