Dubai Property Sales Report – August 2025 Market Insights

The real estate market in Dubai rocketed into the summer with a new wave in August 2025. The emirate recorded property sales of AED 51.1 billion (USD 13.9 billion), a 7.9 per cent annualised increase, based on a 15.4 per cent rise in the volume of transactions to 18,678 deals.

The market was dominated by apartment sales, which registered AED 30.2 billion and an astonishing 29.2 per cent increase in units sold. The Dubai real estate market is not only maintaining its momentum; it is leading the pack as August defies seasonal trends.

Market Overview – August 2025

• The market was dominated by apartments both in terms of the number of transactions and the value, since unit sales rose by almost 29.2 per cent over the period of a year.
• The level of Villa transactions decreased drastically, by approximately 38 per cent, yet the prices per square foot remained on an upward trend.
• Plots and commercial property became popular as they offered good growth, particularly the commercial property, which increased by more than 20 per cent in terms of quantity and value.

1. Luxury & Record Deals

A villa on the Palm Jumeirah was sold at a composite rate of 161 million AED, and an apartment on a Silicon Star 2 at Nad Al Hessa has sold at 100 million AED--evidence that still reflects further willingness to pay very high prices for real estate items.

In the ultra-luxury segment, the Emirates Hills area recorded a record sale of a villa of AED 260 million, or AED 18,489 a square foot, establishing new price points.

2. Year-to-Date Momentum

Between January and August, the value of the property market in Dubai had reached up to AED 441.2 billion in sales, a boost of 33.7 per cent as compared to the equivalent indicator last year.

The volume of transactions grew by 21.5 per cent to 137,013 deals, and total real estate activity (including mortgages and grants) reached AED 595 billion and 177,000-plus transactions.

Key Drivers Behind the Market

1. Off-Plan Momentum and Developer Response.

A significant portion of the August activity was impacted by the soaring demand for off-plan properties. Most off-plan volumes also surged by a quarter alone year-on-year, values were up 11%, supported by primary and secondary markets.

2. Population Growth and Expat Demand.

Dubai increased its population to 4 million by August 2025 (it was 3.86 million in January), thanks to an increase in jobs, positive residential policies and migration policies worldwide.

The increase in expatriate inflow continues to push mid-range residential real estate high, such as affordable apartments and off-plan apartments.

3. Foreign Investment and Visa Reforms.

The foreign demand and acquisition of residential properties is being triggered by the Golden Visa programme (e.g., investment of AED starting with 2M, new lifetime visas for particular nationalities).

Indian investment is also surfacing in various sectors, such as real estate, in the India-UAE CEPA deal.

4. Strong Financial Performance of Developers.

Emaar recorded a boost in H1-2025 net profit by 33% (to AED 7.08B), property sales improved by 46 per cent due to sustainable investor confidence and financial capacity of investing in high-grade projects.

5. Micro-Market Drivers and Emerging Neighbourhoods.

High performance in locations such as Business Bay (observable volume increased by 377 per cent, value increased by 290 per cent) and in new communities such as Wadi Al Safa 4 and Al Barsha South Fourth, which indicates growing investor demand.

6. Macro Confidence and Institutional Investment.

The real estate ecosystem in Dubai is supported by huge investments in big companies by the private equity firms, including USD 525M by Permira and Blackstone in Property Finder.

Top-Performing Areas – August 2025

1. Business Bay

August saw Business Bay holding the first position in the Dubai property market with more than 1,695 transactions of AED 4.1 billion. Its combination of off-plan developers or incremental developers and high sales makes it the powerhouse of investment in the city.

2. Jumeirah Village Circle (JVC)

Jumeirah Village Circle (JVC) was next with about 1,600 deals that amounted to almost 2.1 billion. Considered cheap and experiencing continuous rental demands, JVC is still a destination for investors and first-time buyers, offering them mid-market options.

3. Jebel Ali and Dubai Investment Park

Jebel Ali and Dubai Investment Park became reliable competitors, with sales of AED 2.6 and 2.5 billion, respectively. They can be attributed to their emergence, where the demand is driven toward non-traditional central centres in Dubai.

4. Newer Communities

Whereas at the newer communities, the Wadi Al Safa 5 registered AED 1.3 billion of sales and Wadi Al Safa 4 and Al Barsha South registered record growth, where the transaction values more than doubled annually. Off-plan launches and an increasing infrastructure rapidly spread the awareness of these areas.

In general, the performance in the month of August is twofold that of long-standing areas, as Business Bay remains the top greenbelt, and emerging areas become a target lure of fresh capital, as investors seek a bargain and upside prospects.

Luxury & Off-Plan Segment Spotlight – August 2025

Dubai off-plan luxury property sales are in a different dimension, since 2022, transactions over AED 10 million soared by an astounding 240%. Already in H1 2025 alone, ultra-luxury off-plan transaction volume was 3,731.

A combination of branded homes: projects such as The Lana Residences, Bulgari and One&Only One Zaabeel, which provide high standards of finishes and high living standards, mortgage and in many cases above AED 10,000 per square foot, are driving this trend of luxury purchasing in the country.

The luxury segment is dominated by off-plan apartments, in particular. They are also advantaged by investor-friendly characteristics such as enticing early bird rates, long-term post-handover memorandums, and well-rounded amenities, enhancing not only their resale value, but also rental incomes.

Challenges & Risks

• Price is becoming an important consideration. As the average price per square foot goes above AED 1,700, the average buyer of this type cannot easily afford to buy mid-income housing, particularly in prime and central locations.
• The other challenge is an increase in supply. Projects are coming out at an unprecedented rate in the effort to fulfil off-plan demand, but this may lead to an oversupply by 2026 due to a slowdown in demand.
• The mortgage-dependent buyers are affected on the financing side by interest rate pressure and tighter global liquidity. Even though cash investors will continue to dominate the market in Dubai, more expensive borrowing will temper the demand in the mid-range market.
• International uncertainties, such as the volatility of pricing in the oil market and geopolitical disturbances, can affect the direction of the investor mindset, and particularly the international buyers that represent a big portion of the activity.
• Luxury demand is questionable in terms of sustainability. The current situation is in ultra-luxury sales, which is growing rapidly now, although this development depends substantially on high-net-worth inflows.

Outlook – What’s Next?

The Dubai property market does not promise to let down in the last quarter of 2025. The volumes of transactions are high, the off-plan launch works keep attracting capital all over the world, and the demand for luxury is breaking new records. Analysts believe that Q4 2025 has to continue its upward trend, and new branded residences and mega-projects will get into the pipeline.

With this, the market is, again, rather likely to be divided into two directions: prime and luxury assets will be kept steady, whereas the affordability issues may be pressing on the shoulders of mid-income populations. Careful attention will be paid by investors to whether the boom in off-plan sales leads to a supply overcapacity by 2026.

On the policy front, the demand will persist on visa reforms and the global inflow of investors. The institutional support of Dubai real estate appears positive, with developers such as Emaar registering record profits and the entry of private equity firms to fund local platforms.

As a recap, the end of the year 2025 is already underway, and it will become the new landmark as Dubai continues to reaffirm its objectives to ensure that it remains one of the most appealing property investment destinations in the world. To the investors, the affordable spots can be seen in off-plan deals on setting up a home in the up-and-coming neighbourhoods, as well as in luxury projects in already established locations, such as Business Bay and Palm Jumeirah.

Closing In!

The property market of Dubai finished August 2025 on new ground, fuelled by off-plan activity, affluent demand, and the upsurge in foreign investment. Sales were heavily driven by apartments, with Business Bay, JVC, and upcoming communities increasing the wider Dubai story of broad-based growth.

A vibrant real estate market, Dubai continues to be the most active in the world, characterised by visa reforms, infrastructure development, and the sound performance of developers who form the foundation of confidence in the region. To investors, the future is obvious; the conditions are still scenic, yet shrewd decisions between luxury icons and high-growth emerging centres will outline the success in the coming months.