Dubai’s residential property sector continued its upward momentum in Q3 2025, recording 56,015 transactions worth AED138.3bn ($37.7bn), even as global uncertainty persisted. Although the total transaction value declined by 6.4 per cent quarter-on-quarter, sales volume rose by 11.4 per cent, highlighting strong investor confidence and sustained appetite for new developments.
Apartment sales soared to an unprecedented AED93bn ($25.3bn) — the highest figure ever recorded in Dubai’s residential segment. Transaction volumes grew by 22 per cent to reach 48,646 units, driven by a 35 per cent quarter-on-quarter rise in off-plan apartment purchases. Off-plan sales represented 70 per cent of total transactions and 59 per cent of overall value, both setting new benchmarks and underscoring the city’s vibrant development pipeline and strong buyer sentiment.
After an exceptional performance in the first half of the year, villa and townhouse sales moderated, declining 30 per cent quarter-on-quarter with transaction values dropping 34 per cent. Experts view this as a natural market correction following a period of intense activity, as developers paused new launches and buyers became more discerning. Nevertheless, demand for spacious family homes remains solid within established, lifestyle-oriented communities.
Louis Harding, CEO of Betterhomes, described the current phase as one of “selective ascent” rather than continuous growth. He noted that overall sales volume and value rose 18 per cent year-on-year, reaching 56,015 transactions worth AED139.7bn ($38bn), primarily driven by off-plan activity. “Investor demand is increasingly gravitating towards new developments, particularly apartments, which saw a 28 per cent year-on-year surge,” Harding said. “Meanwhile, villa transactions cooled, and high-end sales dipped 48 per cent quarter-on-quarter, signalling a pause for recalibration rather than concern.”
Average residential prices climbed to a record AED1,664 per square foot — nearly double the levels seen in 2020. The 5.2 per cent quarterly rise was fuelled by robust end-user demand, liquidity in the mid-market segment, and favourable international financial conditions. The recent 25-basis-point interest rate cut by the U.S. Federal Reserve also boosted affordability, drawing renewed global investor interest.
Dubai’s housing supply continued to grow steadily, with over 28,500 units completed so far in 2025 and projections exceeding 200,000 units by 2027. Apartments accounted for 85 per cent of Q3 deliveries, primarily concentrated in mid-market hubs such as Jumeirah Village Circle, Business Bay, and Town Square — areas that remain popular among both investors and residents seeking long-term value.
