Dubai’s real estate market posted a record-breaking performance in July, with property transactions surpassing AED 63.6 billion ($17.3 billion), according to the latest data from Property Finder. The figure marks a 27% year-on-year increase in total value and a 24% rise in transaction volume, underscoring renewed investor confidence after a landmark tax policy change.
The growth was driven by both off-plan and secondary market sales, with robust demand across residential and investment properties. Analysts point to the UAE Ministry of Finance’s recent decision to allow corporate tax deductions on investment properties valued at fair market rates as a critical catalyst for the surge. The adjustment, announced in early July, aligns the UAE’s tax framework with international accounting standards, offering businesses greater flexibility and transparency in financial reporting.
The primary market generated AED 31.9 billion ($8.7 billion) in sales, up 32% from the same month last year. High-value transactions concentrated in Wadi Al Safa 3 accounted for 16% of primary market value, while Dubai Investment Park contributed 9%. Both areas benefited from heightened developer activity and targeted investment campaigns aimed at institutional buyers.
The secondary market contributed AED 31.7 billion ($8.6 billion) through 8,221 transactions, marking a 22% increase in value and an 18% rise in transaction volume year on year. Industry sources note that secondary sales growth often reflects deeper confidence in market fundamentals, as buyers commit capital to established properties rather than speculative launches.
Cherif Sleiman, Chief Revenue Officer at Property Finder, described the policy shift as “a forward-thinking move” that strengthens Dubai’s appeal to global investors. “Allowing depreciation deductions on investment properties held at fair value is more than a technical update,” Sleiman said. “It’s a signal that the UAE is committed to evolving its regulatory environment to support long-term capital inflows. Businesses can now claim deductions based on current valuations, which not only improves transparency but also creates substantial tax efficiencies.”
The Ministry’s decision has been widely praised by analysts, who see it as part of a broader strategy to position Dubai as a top-tier investment destination. The change is expected to benefit developers, real estate funds, and corporate buyers looking to expand portfolios while maintaining competitive tax positions.
Alongside policy reforms, shifting buyer preferences also shaped July’s results. With rental prices climbing steadily over the past year, more tenants opted to purchase rather than renew leases. The trend was particularly pronounced among younger professionals and small families, many of whom targeted one-bedroom and studio apartments to hedge against further rent increases.
Data shows apartment purchases rose 3% compared with last year, while villa demand softened slightly as affordability concerns weighed on larger property segments. Market analysts note that smaller units are increasingly seen not only as entry points for first-time buyers but also as attractive investment assets with strong rental yields.
Developers have responded to this demand shift by accelerating launches of compact, amenity-rich units in prime and emerging neighbourhoods. Off-plan sales for such projects accounted for a significant share of July’s total, further reinforcing the city’s mixed-use urban development strategy.
While July’s figures underscore strong momentum, industry observers caution that external factors—such as global interest rate trends and currency fluctuations-could influence market performance in the coming months. However, most agree that Dubai’s combination of policy innovation, infrastructure investment, and sustained population growth provides a solid foundation for continued expansion.
The tax reform’s alignment with international standards is expected to encourage more multinational firms to establish or expand operations in the UAE, boosting demand for both commercial and residential real estate. This aligns with Dubai’s broader economic diversification goals, which aim to reduce reliance on oil revenues and solidify the emirate’s position as a global business hub.
As the city heads into the second half of the year, stakeholders are watching closely for signs that July’s surge could set the tone for the rest of 2025. For now, the numbers suggest that Dubai’s real estate sector is not just resilient but evolving strategically, with both policy and market forces working in tandem to sustain growth.
