The Dubai real estate market continues to demonstrate its resilience and appeal, with the third quarter of 2025 marking another period of significant growth. According to the latest report from Savills, the emirate’s property landscape is thriving, driven by a combination of population growth, economic vitality, and rising investor confidence.

During this quarter, Dubai saw over 50,000 homes sold, maintaining a momentum that surpasses historical averages. This robust performance in the residential sector is largely attributed to the influx of new residents, increased homeownership among expatriates, and a notable migration of high-net-worth individuals seeking the city’s unique blend of luxury and opportunity.

Residential Sector: A Stronghold of Growth

The residential real estate market in Dubai is witnessing a transformation, shifting from a transient hub to a more established, family-friendly environment. This evolution is reflected in the growing preference for homeownership, as buyers range from end-users looking for long-term value to investors attracted by Dubai’s stable regulatory environment and global appeal.

Apartments continue to dominate the market, accounting for 86% of all transactions, a significant increase from 75% in the first quarter. Off-plan sales are particularly strong, representing 69% of total deals, highlighting investor confidence in new projects. The average price per square foot has reached new heights for both apartments and villas, spurred by luxury project launches across key developments.

In the prime residential segment, approximately 1,500 transactions exceeded AED10 million ($2.72 million), with villas making up 73% of this high-value activity. The completion of 8,500 new units in Q3 brings the total for the year to nearly 30,000, matching the annual total for 2024. Looking ahead, more than 250,000 units are expected to be delivered by 2028, indicating a robust development pipeline.

Office Sector: Defying Expectations

Dubai’s office market is also experiencing a remarkable surge, with average rents increasing by 35% year-on-year to AED 233 per square foot ($63.4). This growth is driven by strong non-oil economic expansion and a steady influx of new companies, which has kept leasing activity buoyant even during the traditionally slower summer months.

The office sector’s resilience is underscored by the diverse range of industries driving demand. Technology and media firms, along with pharmaceutical companies, each accounted for 29% of total leasing activity, while consulting and energy sectors contributed 14% each. This broad-based demand, coupled with limited new supply, has maintained upward pressure on rents.

Toby Hall, Head of Commercial Agency, Middle East at Savills, noted that Dubai’s office market continues to exceed expectations. The combination of limited Grade A availability and sustained occupier confidence is reshaping demand, with new developments such as branded and strata-led offices emerging as key trends.

Developers are responding to this demand with plans to complete around 1 million square feet of new office space between late 2025 and early 2026, much of which is already pre-leased. This forward demand is a testament to the market’s strength and the innovative approaches being adopted by developers like Rove Hotels, Danube, and Capital One, who are targeting SMEs and exploring fractional ownership models.

Population Growth and Economic Outlook

Dubai’s population growth remains a critical driver of the real estate market. The emirate’s population surpassed 4 million during the quarter, and it is expected to reach 5 million by 2030. This demographic expansion is complemented by a forecasted UAE GDP growth of 4.7% in 2025, reinforcing long-term demand for high-quality commercial real estate.

In addition to population growth, Dubai continues to attract global wealth. Henley & Partners project that 9,800 millionaires will relocate to the UAE in 2025, further cementing the emirate’s status as a magnet for affluent individuals and families.

Looking ahead, Savills anticipates that Dubai’s real estate market will maintain its strong fundamentals throughout the remainder of 2025. While the office sector is expected to see moderate rental growth as new Grade A completions enter the market, residential demand is set to remain robust, supported by the city’s quality-of-life advantages and sustained investor confidence.

In conclusion, Dubai’s real estate market is thriving on multiple fronts, with both residential and office sectors showing impressive growth. The combination of strategic urban planning, economic diversification, and a welcoming environment for global talent and capital positions Dubai as a standout choice for investors seeking robust returns in a dynamic global market.

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