The Dubai real estate market has once again proven its resilience and growth potential, recording a staggering AED138 billion ($37.6 billion) in residential sales during the third quarter of 2025. This represents an impressive 18% increase compared to the same period last year, signaling robust investor confidence and a thriving market environment.

According to data from Espace Real Estate, the quarter saw 55,280 residential transactions, underscoring the emirate’s ongoing market expansion. John Lyons, Managing Director at Espace Real Estate, noted, “In Q3 2025, the Dubai residential market continued to demonstrate strength and depth, reflecting solid investor confidence and growing long-term demand.” This growth is indicative of a maturing market dynamic increasingly driven by end-user demand.

Off-Plan Sales Dominate Market Activity

Off-plan transactions have become a defining feature of Dubai’s real estate landscape, accounting for 70% of total residential sales in Q3 2025. This marks a significant rise from 59% in the first half of the year, highlighting sustained investor appetite. The surge in off-plan sales is largely attributed to the emirate’s population growth and the liquidity that supports new project launches.

The mid-to-upper-tier communities, particularly in the AED5–10 million ($1.36–2.72 million) price segment, witnessed the largest year-on-year increase of 60%. This trend underscores the strength of these communities and reflects a behavioral shift among buyers who increasingly view Dubai as a long-term home base, driving consistent demand for family-oriented properties.

Price Growth in Villas and Apartments

The residential market’s upward trajectory is further evidenced by price growth across villa and apartment communities. Out of 34 villa and townhouse communities tracked, 31 experienced price increases, with 20 out of 22 villa and townhouse areas recording an average price rise of 22%. This growth is primarily driven by limited supply, which continues to push prices upward.

Similarly, the apartment sector saw 11 out of 12 communities experience price growth, averaging 12%. However, with 85% of the upcoming supply comprising apartments, analysts anticipate a more moderate price growth in this segment compared to villas and townhouses.

Rental Market Trends and Stability

Dubai’s rental market is showing signs of greater balance, as new apartment handovers have eased pressure on established areas such as Dubai Marina, JBR, and JLT. This has led to a shift in demand towards more affordable districts, including Jumeirah Village Circle (JVC). According to Espace Real Estate, this trend is fostering a more stable rental environment across the wider market, reflecting the maturity of Dubai’s housing ecosystem.

Looking Ahead: Steady Demand into 2026

As Dubai’s population continues to expand and its reputation as a long-term destination strengthens, the real estate market is expected to remain buoyant. Espace Real Estate forecasts that the market will continue to be supported by structural demand, liquidity, and strong fundamentals as it heads into 2026.

The sustained growth in Dubai’s real estate sector, particularly in off-plan sales, highlights the emirate’s appeal as a global investment hub. With a strategic focus on developing family-oriented communities and maintaining a balanced rental market, Dubai is well-positioned to continue attracting both investors and end-users alike.

As the market evolves, stakeholders will be keenly observing how these dynamics play out, particularly in terms of supply and demand balance, pricing trends, and the impact of new project launches. With its robust infrastructure, strategic location, and investor-friendly policies, Dubai’s real estate market remains a beacon of growth and opportunity in the region.

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