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The UAE property market continued its torrid rise in Q3 2025, with Abu Dhabi posting a 76 percent jump in transaction volume year-on-year and Dubai logging its strongest ever quarterly sales figures. Analysts say the performance underscores deepening investor confidence in both off-plan and ready housing segments.
Abu Dhabi: Off-Plan Dominates the Upswing
Abu Dhabi recorded 7,154 property deals in Q3, with a total value of AED 25.3 billion-roughly double the turnover from the same quarter in 2024, per Property Finder data. Of those, 96 percent (6,883 transactions) were residential deals, generating AED 23.3 billion, a 107 percent annual increase.
Within residential deals, off-plan units accounted for 73 percent of transaction count and 68 percent of total value. Off-plan sales jumped 136 percent to AED 17.3 billion. Key contributors were projects on Fahid Island and Al Hidayriyyat Island, which together accounted for more than 30 percent of off-plan residential value in the quarter.
Growth was especially steep for specific product types. Duplexes saw a 424 percent rise in value, while off-plan apartments and villas also climbed sharply. Meanwhile the ready (completed) sector also expanded: 1,940 ready residential transactions pushed value up 71 percent to AED 8 billion. That segment’s volume rose 15 percent and value 56 percent, buoyed by demand in Al Reem, Al Raha Beach, Al Reef, and Saadiyat Island.
Local brokers suggest that buyer confidence in master-planned developments, along with structured payment plans, is shifting more capital into off-plan for now. Some also note that limited supply of ready inventory is nudging buyers toward new launches.
Dubai: All-Time Highs, But Demand Becoming Finer
Dubai’s Q3 performance reinforced its global appeal. Total deals reached 40,108, a 26 percent increase year-on-year. Off-plan accounted for 68 percent of transactions, rising in value 23 percent to AED 82.9 billion. Ready property sales held 18,936 transactions, with total value climbing 16 percent to AED 86.1 billion.
The distribution hints at more selective buying rather than sheer volume chasing. For example, Business Bay alone recorded over AED 7.4 billion in sales, supported by new launches and steadily improving infrastructure. Resale activity, particularly in waterfront and premium sectors like Palm Jumeirah and Dubai Marina, accounted for more than AED 6 billion worth of deals.
Average price per square foot reached new highs, with some locations crossing AED 1,667/sq ft. Off Plan Projects Analysts view this as a signal of sustained demand in top-tier zones, particularly from high-net-worth individuals and institutional investors.
Yet signs of softening emerge. Fitch Ratings recently warned of a possible 10-15 percent correction later in 2025, pointing to an oversupply of more than 210,000 units slated for delivery in the next two years.
Market Dynamics & Risks
Across both emirates, off-plan sales are driving headline figures. But in Dubai, the ready sector’s strength is telling: buyers are increasingly placing value on move-in-ready homes over paper gains alone. In Abu Dhabi, the dominance of master-developments suggests a maturation trend-buyers want predictable product roadmaps and greater oversight.
Rental tensions are adding pressure. In Dubai, annual rental growth has slowed to 8.5 percent in mid-2025, down from double-digit levels a year ago. Global Property Guide Meanwhile, Abu Dhabi’s rental inflation surged over 27 percent in May 2025. Global Property Guide
Analysts caution that current gains lean heavily on investor sentiment. Supply pipelines remain aggressive, and new launches may outpace absorption capacity. The most discerning buyers now weigh long-term fundamentals – location, amenities, payment terms – more than headline yields alone.
CityNest Realty View
Dubai is extending its outperformance, yet cooling signals and supply pressures mean momentum will hinge on delivery execution and pricing discipline. Abu Dhabi’s shift toward project-integrated, well-engineered launches positions it well for sustainable growth.
Written by, Real Estate Market Analyst, CityNest Realty
Mainly off-plan residential sales backed by strong investor confidence and structured payment schemes. In Abu Dhabi, high-value master developments played a significant role.
Yes. In Abu Dhabi, ready sales grew 71 percent in value. In Dubai, ready deals contributed over AED 86 billion in value, showing selective demand for completed homes.
Yes. Ratings agency Fitch warns of a possible 10–15 percent correction in Dubai late in 2025 or in 2026, citing large upcoming supply deliveries.
