Dubai’s residential property market continued its record-breaking run in the third quarter of 2025, with over 50,000 home sales recorded for the second consecutive quarter, according to the latest Savills Residential Market Report.
The surge in activity coincides with a key demographic milestone — Dubai’s population officially surpassed 4 million in September, as confirmed by the Dubai Statistics Centre. Analysts attribute this growth to strong economic fundamentals, rising demand from high-net-worth individuals, and the city’s enduring global appeal as a destination for living and investment.
Market Overview
Apartment transactions dominated activity, accounting for 86% of all deals, up from 80% in Q2 and 75% in Q1. Off-plan sales remained the key growth driver, representing 69% of total transactions with nearly 37,000 units sold, while the ready market saw more than 16,500 deals, maintaining a steady pace in line with the two-year quarterly average.
Zone 6, encompassing key communities along the Al Khail corridor — including Jumeirah Village Circle, Dubailand, Damac Hills 2, The Valley, and Damac Lagoons — emerged as the city’s most active zone, capturing 37% of total transactions. Zone 3, home to established areas like Dubai Marina, Emirates Living, and Al Barsha, followed with 29% of overall activity.
Economic and Demographic Drivers
According to Oxford Economics, UAE GDP is projected to grow by 4.9% in 2025, bolstered by strong non-oil sector performance. Combined with Dubai’s tax-free ecosystem, accessible mortgage market, and relative affordability compared to other global cities, these factors are sustaining demand from both investors and long-term residents.
Supply and New Completions
Approximately 8,500 residential units were delivered in Q3, bringing year-to-date completions to 30,000, already matching the total for all of 2024. Another 10,000 units are expected before year-end, highlighting a robust supply pipeline.
Notable completions this quarter include:
- Viridian by Meraas in Al Wasl
- Palace Residences by Emaar in Dubai Creek Harbour
- Ellington House by Ellington in Dubai Hills Estate
New project launches also remained strong, with 10,000 new units introduced in Q3, of which 97% were apartments. Luxury golf-course communities such as Jumeirah Golf Estates Phase 2 continued to attract high investor interest.
Prime Residential Market
Dubai’s prime residential segment remained resilient after record highs in Q2, with around 1,500 transactions exceeding AED 10 million ($2.7 million) in Q3 — including 500 off-plan deals.
Villas dominated the prime category, accounting for 73% of transactions, underscoring the preference among affluent expatriates for luxury family homes. This trend reflects strong confidence in Dubai’s high-end housing market and aligns with the Dubai Economic Agenda (D33), which aims to enhance the emirate’s global investment appeal.
“Q3 2025 has delivered further record-breaking transaction levels for Dubai’s residential market,” said Rachael Kennerley, Director of Research, Savills Middle East. “Off-plan and apartment activity continued to strengthen their dominance, while a drop in villa transactions highlights limited new supply in that segment. The prime market, however, flips this trend, with villas accounting for nearly three-quarters of high-value deals.”
Pricing and Investor Sentiment
Average capital values for apartments remained stable at AED 1.9 million ($517,000), while average villa prices exceeded AED 7 million ($1.9 million) — up 24% from the 2024 average.
Rates per square foot reached new highs across both categories, reflecting sustained confidence in premium, well-located communities. Savills also noted growing demand in established prime districts offering strong lifestyle amenities and educational infrastructure — with 25 new private schools opening in September alone.
Outlook: Long-Term Growth Backed by Population Expansion
Looking ahead, Savills expects continued market resilience, supported by Dubai’s growing population and steady inflow of international investors. The firm forecasts that Dubai’s population will reach 5 million by 2030, while nearly 9,800 millionaires are projected to migrate to the UAE in 2025.
“Dubai’s residential market continues to demonstrate remarkable depth and resilience, underpinned by a strong economy, population growth, and demand from both investors and end users,” said Andrew Cummings, Head of Residential Agency, Savills Middle East.
“The balance between affordability and lifestyle remains one of the city’s biggest strengths. As Dubai moves toward a population of five million, we expect further segmentation in the market, with established communities holding firm and emerging zones offering new value opportunities.”
