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Dubai’s real estate market is closing in on a historic milestone, with total property transactions for the first nine months of 2025 nearing AED 500 billion – the strongest performance on record. The city’s property boom continues to defy expectations, driven by off-plan demand, investor confidence, and the sustained influx of global capital.
According to new data from DXBinteract, Dubai recorded 158,200 real estate transactions worth AED 498.8 billion between January and September 2025. That marks a 20.5% rise in volume and a 32.3% surge in value compared with the same period last year – underscoring the emirate’s remarkable resilience amid shifting global economic conditions.
In the third quarter alone, there were 59,228 property sales totaling AED 170.7 billion, representing year-on-year gains of 17.2% in transaction count and 19.9% in total value. Market analysts say Dubai’s real estate is showing strong fundamentals across both off-plan and ready segments, buoyed by continued migration, infrastructure growth, and the government’s investor-friendly visa initiatives.
Apartments Lead Market Momentum
Apartments remained the most traded property type in Q3 2025, with 49,370 units sold worth AED 94.3 billion a sharp 25.9% jump from the previous year. This segment has benefited from demand among first-time investors and professionals seeking homes near key business districts.
“Compact apartments, particularly in JVC, Business Bay, and Arjan, continue to attract entry-level investors who view Dubai as a safe and profitable long-term bet,” said a senior broker at a Dubai-based realty firm.
Commercial real estate also showed robust performance, with 1,565 transactions worth AED 4.2 billion, marking a 41.9% increase year-on-year. Land sales climbed 25.7% to 1,214 deals totaling AED 36.1 billion, reflecting developers’ ongoing appetite for prime plots to launch new master communities.
Villas Show Strength Despite Fewer Sales
The villa segment witnessed a nuanced trend. Though sales volume declined by 23.3% to 7,078 transactions, total value held firm at AED 43.1 billion – buoyed by an 11.4% rise in median price per square foot, which now stands at AED 1,685.
Market observers note that villas remain the choice for families relocating to Dubai and seeking community living with access to international schools and green spaces. “Demand has shifted slightly from quantity to quality,” said a representative from Provident Estate, noting that newer villa projects in areas such as Dubai Hills Estate and Arabian Ranches 3 continue to command premiums.
Long-Term Growth Trajectory
The city’s property sales trajectory since 2020 highlights Dubai’s extraordinary post-pandemic expansion. Data from fäm Properties shows quarterly sales rising from AED 17.9 billion in Q3 2020 to AED 42.5 billion in 2021, AED 69.1 billion in 2022, AED 109.4 billion in 2023, and AED 142.3 billion in 2024. The 2025 surge to AED 170.7 billion further cements Dubai’s reputation as one of the world’s fastest-growing luxury real estate markets.
Luxury transactions continue to play a pivotal role in this momentum. The most expensive residential deal in Q3 was a villa in Jumeirah Second, sold for AED 250 million, while the top apartment transaction was a AED 174 million penthouse at Aman Residences Tower 1.
Notably, 10% of all Q3 transactions were above AED 5 million, underscoring Dubai’s enduring global appeal among high-net-worth buyers. The AED 1 million to AED 2 million price range represented the largest share of sales at 38%, suggesting that mid-market inventory continues to draw significant investor activity.
Off-Plan Projects Dominate
Off-plan properties accounted for 73% of total sales by volume, reflecting developer-driven launches and strong investor appetite for flexible payment structures. Analysts say this surge aligns with ongoing mega projects by developers such as Emaar, Damac, and Binghatti, which continue to fuel both domestic and international investor interest.
Data from Property Finder indicates that off-plan transactions in emerging communities such as Dubai South, MBR City, and Jumeirah Village Circle have risen sharply, as buyers seek early entry into new master developments ahead of Expo City 2030 preparations.
Market Insights and Outlook
Despite global economic uncertainty, Dubai’s real estate market remains supported by solid demand fundamentals. Brokers cite several driving forces – including favourable tax regulations, residency incentives for investors, and rising population inflows from Asia and Europe.
Local analysts forecast that total transactions could surpass AED 650 billion by year-end, marking another all-time high. “Investor sentiment remains optimistic, particularly among overseas buyers who view Dubai as a hedge against inflation and currency volatility,” said a consultant from Knight Frank Middle East.
CityNest Realty View:
Dubai’s real estate market is maintaining strong upward momentum, driven by genuine end-user demand and long-term investor confidence. Off-plan launches will likely continue to define market direction into early 2026.
Written by:
Real Estate Market Analyst, CityNest Realty
Strong off-plan demand, investor confidence, and favourable visa reforms have propelled Dubai’s property market to record-breaking levels this year.
Apartments and off-plan projects are leading sales, while villas maintain strong values despite a smaller number of transactions.
Yes. Ultra-luxury properties continue to attract global investors, with several sales exceeding AED 100 million in 2025.
