Despite traditionally quieter summer months, Dubai’s property market delivered one of its strongest quarters on record in 2025, extending its impressive upward trajectory.
According to Engel & Völkers Middle East, commercial transaction values surged by 31%, while residential sales rose 22.7% year-on-year in the third quarter — reinforcing Dubai’s position as one of the world’s most dynamic, stable, and mature real estate markets.
“Dubai’s property market has reached a new level of maturity,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “We’re seeing not just speculative investment, but long-term commitment from people who view Dubai as home — a place to build their lives, careers, and legacies.”
Residential Market: Enduring Strength Across All Segments
With a population exceeding four million, Dubai continues to benefit from deep-rooted demand across both the residential and commercial sectors.
Off-plan properties dominated activity, accounting for around 70% of all residential transactions, while apartments represented 87% of total sales — amounting to 47,705 units worth AED 91.4 billion, a 26.4% increase compared with the same quarter in 2024.
The luxury segment also flourished, with 1,388 transactions above AED 10 million, marking the second-highest quarter on record. Standout deals included a AED 173.6 million apartment at Aman Residences, Jumeirah, and a AED 350 million off-plan home at Jumeirah Asora Bay.
Emerging off-plan destinations such as Dubai Science Park, Damac Riverside, and DLRC captured growing investor interest thanks to their long-term potential. Meanwhile, established districts like Downtown Dubai, Dubai Marina, and Jumeirah Beach Residence continued to see robust resale activity.
Rising rents and an increased sense of permanence among expatriate residents are also driving a gradual shift from renting to ownership, particularly among families and professionals seeking long-term stability in the UAE.
Commercial Sector: Strong Growth and Investor Confidence
The commercial property market mirrored this momentum, recording 3,418 transactions worth AED 30.4 billion — a 31% year-on-year increase. Every asset class recorded double-digit gains:
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Buildings: +50%
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Retail: +37%
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Offices: +45%
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Land: +38%
Ras Al Khor saw large-scale land transactions worth AED 2.9 billion, while Business Bay led with AED 3.4 billion in total deals.
Demand for modern, sustainable, and well-connected office spaces remains especially strong. Q3 saw 1,151 office sales totalling AED 3.1 billion — almost double the value achieved in the same quarter last year. Off-plan office transactions alone rose from 69 in Q3 2024 to 389 in Q3 2025, underscoring growing confidence in Dubai’s business and economic outlook.
“The surge in off-plan office demand shows how investors are adapting to Dubai’s evolving business landscape,” said Hadi.
Economic Fundamentals Support Continued Expansion
The International Monetary Fund (IMF) forecasts that the UAE’s GDP will grow by 4.8% in 2025 and 5% in 2026, supported by diversification efforts, fiscal discipline, and strong foreign investment. Inflation remains low, while potential interest rate cuts in 2026 are expected to add further momentum to the property market.
Analysts agree that Dubai has successfully overcome past market cycles, emerging as a resilient, world-class destination underpinned by expanding infrastructure, a growing population, and sustained inflows of global capital and high-net-worth individuals.
Looking ahead to the final quarter of 2025, Engel & Völkers expects both residential and commercial segments to maintain their upward trajectory.
“Dubai has demonstrated that sustainable growth is now embedded in its DNA,” Hadi added. “It’s no longer just a city for investment — it’s a city of belonging, ambition, and enduring value.”
