Dubai’s residential real estate market maintained strong momentum in the third quarter of 2025, with total transaction values reaching AED138 billion ($37.6 billion), according to data from Espace Real Estate. The quarter saw 55,280 residential transactions, representing an 18% year-over-year increase from the same period in 2024. This growth highlights Dubai’s ongoing market expansion and sustained investor confidence.
John Lyons, Managing Director at Espace Real Estate, said: “In Q3 2025, the Dubai residential market continued to demonstrate strength and depth, reflecting solid investor confidence and growing long-term demand. While overall activity remains high, we are seeing a more mature market dynamic take shape, one that is increasingly driven by end-user demand.
Off-Plan Sales Drive Market Expansion
Off-plan transactions accounted for 70% of total residential sales, up from 59% in the first half of 2025. This rise reflects strong investor appetite to capitalize on Dubai’s population growth and the liquidity supporting new project launches. The AED5–10 million ($1.36–2.72 million) price segment recorded the largest year-on-year increase, rising 60 per cent, underscoring the strength of mid-to-upper-tier communities.
The report also noted a behavioural shift as more buyers view Dubai as a long-term home base, which continues to drive consistent demand for family-oriented properties.
Average prices increased in 31 out of 34 villa and townhouse communities tracked by the report. Among the 22 villa and townhouse areas, 20 recorded price rises, averaging 22 per cent, largely driven by limited supply. For apartments, 11 out of 12 communities experienced price growth, averaging 12 percent. However, because 85 per cent of the upcoming supply consists of apartments, analysts expect this segment to see more moderate price growth than villas and townhouses.
Rental Market and 2026 Outlook
Dubai’s rental market showed greater balance as new apartment handovers eased pressure on established areas such as Dubai Marina, JBR, and JLT. Consequently, some demand shifted toward more affordable districts, including Jumeirah Village Circle (JVC). According to Espace Real Estate, this trend reflects a more stable rental environment, highlighting the maturity of Dubai’s housing ecosystem.
As Dubai’s population continues to expand and its reputation as a long-term destination strengthens, Espace Real Estate forecasts steady market support from structural demand, liquidity, and strong fundamentals heading into 2026.
