In a remarkable display of growth, Dubai’s off-plan real estate market has reached unprecedented levels, marking a significant milestone in the city’s property sector. According to a recent report by betterhomes titled “Shaping Skylines: Dubai Residential Real Estate Q3 2025,” the third quarter of 2025 saw a record-breaking surge in off-plan apartment sales, underscoring the robust investor confidence in Dubai’s long-term real estate prospects.

The report highlights that off-plan transactions accounted for a staggering 70% of the total sales volume, the highest share recorded in the past three years. This marks a notable increase from 65% just three quarters ago, illustrating a clear shift in buyer preference towards newly launched projects. The off-plan market’s contribution to the total value of real estate sales also hit a new high at 59%, surpassing the historical range of 50-58% observed since 2023.

Record-Breaking Apartment Sales

The third quarter of 2025 witnessed an extraordinary 35% quarter-on-quarter increase in off-plan apartment sales, with 37,980 units sold. This represents the largest quarterly increase ever recorded, bringing the total number of apartment transactions to 48,646 units. Such figures reflect a strong investor appetite, driven by the relative affordability, high liquidity, and sustained end-user demand for apartments.

Dubai’s apartment market reached a transaction value of AED 93 billion (approximately USD 25.32 billion) during this period, a 14% increase from the previous quarter. Off-plan apartment sales were a significant contributor, accounting for 81% of this total value, setting a new benchmark for the market.

Driving Factors Behind the Surge

The surge in off-plan sales can be attributed to several key factors. A steady pipeline of new project launches, coupled with attractive payment plans, has enticed both local and international investors. These investors are keen on capital appreciation and rental yields, which remain strong in Dubai’s dynamic real estate market.

Christopher Cina, Director of Sales at betterhomes, noted that the off-plan market has evolved from a trend into a fundamental aspect of Dubai’s real estate growth. He emphasized that the current surge in apartment sales reflects a maturing market, where developers are aligning their products with investor expectations for value, quality, and long-term returns. This alignment is attracting both local confidence and global capital, eager to participate in Dubai’s next phase of urban growth.

Shifts in Market Dynamics

While the off-plan segment is booming, the secondary market has experienced a different trend. Values in the secondary market recorded a 17% decline as buyers increasingly shifted their focus towards new project opportunities. This shift highlights the growing preference for off-plan properties, which offer the allure of modern amenities and the potential for higher returns.

In contrast, the villa and townhouse market experienced a natural cooldown in the third quarter of 2025. Sales volumes in the secondary market dropped by 30%, and off-plan transactions decreased by 28%. This slowdown is attributed to a temporary pause in new project launches and the market’s adjustment following an exceptionally strong first half of the year, rather than a decline in demand.

Future Prospects and Market Confidence

Despite the cooling in certain segments, the overall outlook for Dubai’s real estate market remains positive. The substantial pipeline of off-plan projects set to be delivered over the next several years continues to broaden buyer choices across different budgets and handover timelines. This diversity ensures that the market remains attractive to a wide range of investors.

The record demand for off-plan properties underscores the enduring confidence in Dubai’s real estate market. As the city continues to evolve and expand, both local and international investors are keen to capitalize on the opportunities presented by Dubai’s dynamic urban landscape. With developers consistently delivering projects that meet investor expectations, the off-plan market is poised to remain a defining pillar of Dubai’s real estate growth story.

In conclusion, the third quarter of 2025 has set a new benchmark for Dubai’s off-plan real estate market, with record apartment sales and a significant shift in buyer preferences. As the city continues to attract global capital and local confidence, the future of Dubai’s real estate market looks promising, driven by innovation, quality, and a commitment to meeting the evolving needs of investors.

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