According to data from Espace Real Estate, the Dubai residential real estate market continued to grow strongly in the third quarter of 2025, with total transaction values exceeding AED138 billion ($37.6 billion).
55,280 residential transactions were registered throughout the quarter, which is an 18% year-over-year increase over the same time in 2024. This performance highlights Dubai’s continued market expansion and high 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 trades in Dubai
70% of all residential sales were off-plan, up from 59% in the first half of 2025. This indicates that investors are still eager to profit on the emirate’s population increase and the liquidity that is enabling the development of new projects.
The price range of AED5–10m ($1.36–2.72m) saw the biggest annual rise, increasing by 60%, underscoring the robustness of mid-to-upper-tier communities.
The study also saw a change in consumer behavior, with more purchasers seeing Dubai as a permanent residence, which sustains the need for family-friendly real estate.
Villa and apartment price growth
Thirty-one of the thirty-four villa and townhouse complexes the survey studied saw a rise in average costs.
Due to restricted supply, 20 of the 22 villa and townhouse regions saw price increases, with an average increase of 22%.
Prices for flats increased by an average of 12% in 11 of the 12 communities.
However, analysts predict that the price growth of apartments would be more modest than that of villas and townhouses, as apartments make up 85% of the future supply.
Rental market trends
As new unit handovers reduced pressure on established neighborhoods like Dubai Marina, JBR, and JLT, and some demand shifted toward more reasonably priced neighborhoods like Jumeirah Village Circle (JVC), Dubai’s rental market appeared to be more balanced.
Espace Real Estate claims that this trend represents the maturity of Dubai’s housing ecosystem and is creating a more stable rental environment for the entire market.
Steady demand heading into 2026
Espace Real Estate predicts that structural demand, liquidity, and solid fundamentals will continue to underpin the market beyond 2026 as Dubai’s population grows and its standing as a long-term destination solidifies.
