According to Engel & Völkers Middle East’s 2025 Annual Market Report, residential sales in Dubai reached Dh546.8 billion across 202,349 transactions last year, marking the market’s best performance on record. Although activity reached all-time highs, the year also saw a change in the dynamics of the market, with growth becoming deeper, wider, and more reliant on long-term fundamentals rather than quick acceleration.
“2025 was a defining year for Dubai’s real estate market. It delivered exceptional scale and confidence, but more importantly, it marked a shift in the market’s evolution,” said Daniel Hadi, chief executive of Engel & Völkers Middle East. He pointed to Dubai’s political stability, competitive tax environment, strong infrastructure and long‑term vision as key factors underpinning sustained demand from both investors and end‑users.
Apartments continued to dominate residential trades, making over 83% of all transactions. Sales of apartments increased to Dh328.5 billion, up 31.8% from 2024, with 167,841 transactions. Strong off-plan activity and consistent demand in established neighborhoods drove growth, demonstrating continued faith in Dubai’s development pipeline.
Off-plan sales accounted for 64.8% of all residential transactions during the year, indicating both the restricted supply of ready stock in the secondary market and the ongoing interest of investors. Secondary-market activity was still limited by supply rather than inadequate demand, according to Engel & Völkers.
“What stood out most in 2025 was the depth of demand we are seeing across all property types and locations,” said Robert Villalobos, head of brokerage at Engel & Völkers Dubai. “Buyer interest remains exceptionally broad‑based, and activity in the secondary market continues to be driven by real end‑user and investor demand rather than short‑term sentiment.”
With a total sales value of Dh141.2 billion, an increase of 30.5% year over year, the villa segment also expanded beyond conventional premier neighborhoods. Families and long-term investors who committed to new master-planned communities drove demand, which was particularly high in the upper mid-market price range between Dh4 million and Dh8 million.
With 22,904 purchases, townhouses had their highest annual volume ever, up 4.6% from 2024. The total sales value rose to Dh74.4 billion, highlighting the continued need for family-oriented housing in the face of changing lifestyle choices and population expansion.
Looking ahead, Engel & Völkers expects Dubai’s market to enter a more selective phase in 2026, characterised by consolidation and differentiated performance. “Overall, the outlook for 2026 is one of stability, depth, and continued opportunity,” Hadi said, as growth becomes increasingly driven by fundamentals rather than momentum.
