According to new data from Espace Real Estate, Dubai’s residential property market continued its strong momentum in the third quarter of 2025, with total transaction values surpassing AED 138 billion (USD 37.6 billion).
A total of 55,280 residential transactions were recorded during the quarter — an 18% year-on-year increase compared with the same period in 2024. This continued growth highlights the strength of Dubai’s market fundamentals and the sustained confidence of both local and international investors.
“In Q3 2025, the Dubai residential market continued to demonstrate strength and depth, reflecting solid investor confidence and growing long-term demand,”
said John Lyons, Managing Director at Espace Real Estate.“While overall activity remains high, we are seeing a more mature market dynamic take shape — one increasingly driven by genuine end-user demand.”
Off-Plan Dominance and Changing Buyer Behaviour
Off-plan sales accounted for 70% of all residential transactions in Q3, up from 59% in the first half of the year. This surge reflects investors’ continued appetite for Dubai’s expanding population base and the liquidity driving new project launches across the emirate.
The AED 5–10 million (USD 1.36–2.72 million) price bracket experienced the strongest annual growth, jumping 60% year-on-year, underscoring the resilience of Dubai’s mid-to-upper-tier communities.
Espace’s analysis also points to a shift in buyer behaviour, with a growing proportion of purchasers now viewing Dubai as a long-term home, further strengthening demand for family-oriented, owner-occupied properties.
Villa and Apartment Price Trends
Of the 34 villa and townhouse communities studied, 31 recorded price increases in Q3 2025. Limited supply pushed values higher across 20 of the 22 villa and townhouse areas, with an average price rise of 22%.
Apartment values also trended upward, increasing by an average of 12% across 11 of 12 key apartment communities. However, analysts expect price growth in the apartment segment to moderate going forward, given that apartments make up 85% of upcoming residential supply.
Rental Market Adjusts to New Supply
Dubai’s rental sector showed signs of stabilisation as new project handovers eased pressure on established neighbourhoods such as Dubai Marina, JBR, and JLT. This shift redirected some demand towards more affordable areas like Jumeirah Village Circle (JVC).
Espace noted that this trend reflects the increasing maturity of Dubai’s housing ecosystem, creating a more balanced and sustainable rental market across the city.
Outlook: Confidence Through 2026 and Beyond
Espace Real Estate expects Dubai’s property market to maintain steady momentum heading into 2026, supported by strong liquidity, a growing population, and the emirate’s position as a global long-term hub for investment and residence.
As structural demand and confidence remain high, Dubai’s residential sector looks set to continue delivering solid, sustainable growth well beyond 2026.
