Record-Breaking Growth: Dubai Real Estate Overview 2025

1. Market Overview

Dubai’s property market sustained its remarkable growth trajectory through the first nine months of 2025, recording total sales of AED 499.5 billion, a 33% increase year-on-year (YoY).

The market saw 158,300 transactions—up 21% YoY, while the average price per square foot climbed to AED 1,600, marking an 8% annual rise.

This consistent growth underlines Dubai’s resilient real estate sector, driven by solid investor sentiment, rising population, and an increasingly diverse pool of local and international buyers across both off-plan and secondary segments.

2. Market Segments

Off-Plan (Primary Sales)

• Sales Value: AED 324.2 billion (+33% YoY)
• Transactions: 108,600 (+26% YoY)
• Average Price: AED 1,700/sq. ft. (+5% YoY)

Off-plan sales continue to dominate total activity, supported by a surge in new project launches and rising demand in rapidly developing areas such as Dubai South, Jumeirah Village Circle (JVC), and Wadi Al Safa 5.

Secondary (Resale) Market

• Sales Value: AED 175.3 billion (+31% YoY)
• Transactions: 49,700 (+11% YoY)
• Average Price: AED 1,500/sq. ft. (+11% YoY)
• Capital Gains: AED 56 billion (+66.6% YoY)

The resale market remains robust, with notable profits as demand outpaces supply in established zones such as Dubai Marina, Business Bay, and JVC.

Mortgage Activity

• Total Value: AED 132.5 billion
• Transactions: 38,000 (+29% YoY)
• Average LTV: 72.6% (-5.5% YoY)

Although mortgage deals have grown, the slight dip in Loan-to-Value (LTV) ratios indicates larger upfront payments from buyers—reflecting a healthier, equity-backed marketplace.

3. Supply & Development

• New Units Launched (YTD): ~118,500 (stable vs. 2024)
• Active Developers: 2,061
• Agencies: 9,003
• Registered Agents: 30,332

Developers have sustained record launch volumes for the second consecutive year, particularly focusing on villa communities and affordable apartment developments. While this expansion reflects confidence in demand, analysts advise monitoring absorption levels as the market moves into 2026.

4. Best-Performing Areas (YTD 2025)

Apartments – Off-Plan

• Jumeirah Village Circle (JVC): Market leader
• Business Bay: Active new launches
• Wadi Al Safa 5: Rapidly emerging hub
• Dubai South: Popular with mid-income buyers
• Jabal Ali First: Stable performance

Apartments – Resale

• JVC: Highest transaction activity
• Dubai Marina: Consistent end-user demand
• Business Bay: High liquidity and turnover
• Downtown Dubai: Slight slowdown after a strong 2024
• Al Merkadh: Rising buyer interest

Villas – Off-Plan

• Al Yelayiss 1: Leading with exceptional absorption rates
• Al Yufrah 1: Consistent demand
• Madinat Hind 4: Showing steady momentum
• Dubai Investment Park Second: Gaining attention
• Wadi Al Safa 5: Reliable performer

Villas – Resale

• Wadi Al Safa 5
• Al Yelayiss 1
• Al Hebiah Fifth
• Dubai South
• Al Yufrah 1

5. Key Insights

• Resale profits surge: Capital gains jumped 67% YoY, reflecting high investor liquidity and quick resale cycles in prime areas.
• Developer confidence remains strong: Over 118,000 new homes launched again in 2025, signaling continued trust in future demand.
• Financial maturity: Increased mortgage activity paired with lower LTV ratios suggests a shift toward more financially stable, equity-driven buyers.
• International capital influx: Wealthy investors from Europe, Asia, and the GCC continue to favor Dubai for its tax-free advantages and high returns.
• Balanced growth: Core districts like Downtown Dubai and Marina are stabilizing, while emerging communities experience double-digit expansion.

6. Market Outlook – Q4 2025 and Beyond

Dubai is on track to surpass AED 650 billion in total property sales by the end of 2025 — setting a new record for the sector.

Short-Term: Off-plan sales and foreign investments are expected to remain key drivers. Medium-Term Risks: Possible oversupply in fringe zones and tightening global liquidity. Opportunities: Growth potential remains strong in Dubai South, Al Yelayiss 1, and Wadi Al Safa 5 — prime locations for strategic investment.

Final Outlook

Dubai’s real estate sector continues its expansion phase, underpinned by sustainable demand, low leverage, and diversified investor participation. Even with intense construction activity, most new stock is quickly absorbed — a clear sign of a healthy, high-demand market.

All indicators suggest a bullish 2025, with positive momentum expected to extend into 2026, cementing Dubai’s reputation as one of the most dynamic and resilient property markets worldwide.