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Dubai’s real estate sector has extended its record-breaking run into the second half of 2025, powered by a surge in off-plan transactions and a growing shift toward ownership among residents. Fresh data shows the city’s property boom is no longer confined to speculative cycles, but is increasingly underpinned by end-user demand and government-backed initiatives aimed at boosting homeownership.
Figures from eXp Dubai revealed that between May and August, the Dubai Land Department registered 75,519 property transactions, up from 60,110 in the first four months of the year. The 26% rise highlights the depth of demand, even as August brought the usual seasonal slowdown. Month-on-month, transactions dipped 4.5% between July and August, but analysts stressed that the broader trajectory remains upward.
Off-plan projects continue to lead the way, with 58% of transactions during the May–August period compared to 52.7% earlier in the year. Developers have lured buyers with flexible payment structures, lower entry costs, and launch prices designed to capture long-term investor interest. Off-plan’s dominance also signals growing confidence in Dubai’s future supply pipeline, bolstered by major players such as Emaar, Damac, and Binghatti.
Yet, the story is no longer only about speculative activity. Engel & Völkers Middle East reported a 22% year-on-year rise in secondary market sales in the first eight months of 2025. This reflects a structural shift as more tenants choose to purchase homes rather than remain in Dubai’s rental cycle. Rising rents, attractive mortgage terms, and improved financial stability among expatriates have all played a role.
“Ownership is no longer aspirational for many tenants; it is becoming the preferred choice for long-term security and value creation,” said Daniel Hadi, CEO of Engel & Völkers Middle East. His comments reflect a broader sentiment in the Dubai property market 2025, where the calculus of renting versus buying increasingly favors ownership.
August’s figures reinforce this. The Dubai Land Department recorded 17,879 transactions valued at Dh42.4 billion, marking a 17% increase in volume and a 12% rise in value compared to the same month last year. Nearly three-quarters of all August deals were off-plan, a 25% annual increase. Larger family homes also stood out, with sales of four- and five-bedroom units climbing by 70% and 63%, respectively.
Prices are rising in tandem. Property Monitor reported average prices of Dh1,664 per square foot in August, 16.3% higher than a year earlier. Villas led the gains, particularly in lifestyle-driven communities. Arabian Ranches prices rose 23.2%, Dubai Hills Estate climbed 26%, and Victory Heights surged 37%. Apartments also saw significant appreciation, with Jumeirah Village Circle up 17% and Jumeirah Village Triangle advancing 22.3%.
Market resilience, analysts say, is driven by rapid population growth, constrained supply in established areas, and Dubai’s positioning as a global safe-haven city. Despite double-digit price increases, the emirate continues to deliver yields that outpace many leading financial capitals. Average gross rental yields stood at 6.76% in August, with apartments generating 7.12% and villas 4.92%.
These figures remain well above benchmarks in cities such as London, New York, and Singapore, where yields often range between 3% and 5%. This advantage has drawn both domestic and international investors. Lease volumes, however, have fallen 4% this year, and new rental contracts dropped 14%, suggesting that households are locking into ownership as a hedge against rising rents.
Foreign demand remains robust. Buyers from India, the United Kingdom, Germany, Egypt, and China continue to feature prominently, particularly in off-plan developments. At the same time, domestic buyers are increasingly driving secondary-market activity. Mortgage uptake is also growing, supported by competitive loan-to-value ratios of 70–80% and interest rates averaging 3.9%, among the lowest globally.
To encourage more first-time buyers, the Dubai Land Department and the Department of Economy and Tourism launched the First-Time Home Buyer Programme in July. The scheme gives Emiratis and expatriates priority access to new launches, preferential pricing, and tailored mortgage packages. Developers including Emaar, Damac, Binghatti, and Danube have pledged to set aside at least 10% of units priced under Dh5 million for this segment. Banks such as Mashreq, Emirates NBD, and Dubai Islamic Bank are backing the plan with faster approvals and reduced rates.
Officials say the programme aligns with Dubai’s D33 economic agenda and Real Estate Strategy 2033, which aim to expand homeownership, double GDP, and reinforce the city’s position as a global hub for investment and lifestyle. Analysts believe it could also deepen demand in the resale segment, providing a pathway for tenants to transition into ownership.
The Dubai property market 2025 therefore reflects a dual engine of growth: international investment funneled into off-plan projects and domestic buyers moving steadily into homeownership. This blend of speculative and end-user activity has given the sector unusual balance, even amid global economic uncertainty.
For many observers, the shift is not just cyclical but structural. Dubai’s housing demand is being sustained by long-term demographic expansion, government policy, and developer innovation. As Engel & Völkers’ Hadi put it, “Dubai’s property market is no longer just about short-term investment cycles. It is increasingly about residents choosing to establish roots here—buying homes for security, lifestyle, and long-term value creation.”
With more than 75,000 deals already recorded between May and August, the market shows no sign of slowing. Whether off-plan or resale, villas or apartments, Dubai’s housing story in 2025 is being defined not only by capital inflows but also by a profound shift in how people view the city – as a place not just to invest, but to belong.
A mix of off-plan demand, domestic buyers moving into ownership, and strong foreign investment.
Between May and August, 75,519 transactions were registered, up 26% from earlier in the year.
Off-plan dominates with 58% of sales, though resale activity is rising strongly.
Average prices rose 16.3% year-on-year, with villas and apartments both showing double-digit gains.
It provides preferential access, pricing, and mortgages for Emiratis and expatriates, boosting ownership rates.
