Market Overview and Key Insights of Dubai Real Estate FY 2025

Dubai’s property market achieved its strongest performance to date in fiscal year 2025. While the market shattered all previous records, industry leaders celebrated its stellar performance, marked by rising prices, unrivaled sales volume, and a broad investor participation.

This historic report has surfaced as a voluminous proportion of global buyers drawn towards Dubai’s cutting-edge infrastructure advancement, defining economic backdrop, and intelligently formed visa reforms.

Dubai Land Department confirmed that Dubai outpaced every prior year in its overall transactions and sustained growth in multiple segments. The blend of multiple segments together strengthen the appeal for setting new benchmarks as the market heads from 2025 to 2026.

Dubai Property Market 2025 Overview

The new, historic high figures by Dubai real estate market in 2025 solidified its position as the most dynamic property hub worldwide.

• Unprecedented Sales – Dubai property sector posted its most successful year in history as 215,700 units exchanged hands in sales transactions.
• Record-Shattering Sales Value – Celebrating its highest annual figure in history, the emirate’s total sales value amounted to AED 686.8 billion.
• Growth in Mortgage Purchases – Besides escalation in overall values and volumes, the FY 2025 Dubai real estate segment reported 50,974 financed deals, worth AED 179.26 billion.
• Year-on-Year Growth – Compared to 2024, the emirates recorded a tremendous 30.9% rise in total sales value, whereas overall sales volume grew by 18.7% in Dubai property market 2025.

The CEO of Fam Properties identified this expansion as not a mere growth cycle, but a genuine evolution of Dubai’s real estate industry, powered by a blend of multiple trends and investor confidence from diverse regions.

Transaction Analysis by Market Segment 2025

Residential Sector Performance

According to industry leaders, the residential market of Dubai remained the core driver. The growth in volume was concentrated in the apartment segment, followed by the villa segment enjoying the growing demand for luxury properties.

Residential Transaction Highlights for 2025

The annual report by Engel & Volkers reported record figures giving the sales dominance to residential sector of Dubai:

• Total transaction volumes in the residential sector reached 202,349 in 2025.
• Overall sales value reached an estimated Dh 546.8 billion.

Trend Breakdown by Property Type

i. Apartments

Apartments dominated the record figures as the most transacted asset class. The 2025 residential activity of Dubai was led by 83% of apartment transactions, reflecting the robust demand for accessible entry points and profitable rental yields.

Apartments Market Report 2025

ii. Townhouses and Villas

These large-scale property segments continued to appeal to family-oriented and premium buyers. With over 11.3% townhouse transactions and 5.7% villa transactions, the demand escalated across an array of emerging and established communities.

Villas Market Report 2025

Townhouses Market Report 2025

Off-Plan vs. Secondary Market Report 2025

Under-construction or off-plan segments dominated liquidity with over 64.8% of overall transactions in 2025 Dubai residential sales. This proportion mirrors the endless confidence of investors in Dubai’s development pipeline. Additionally, it pointed towards the shortage of ready properties in the secondary market.

i. Primary & Secondary Market Trends

• The first-sale segment reported 149,230 transactions, worth Dh 448.1 billion.
• Secondary market sales recorded 66,400 deals, with values accounting to Dh 238.8 billion.
• The secondary sales market rose by 26.6% annually, whereas a 33.6% year-on-year growth has been witnessed in the primary market.

ii. Price Appreciation in 2025

Like every aspect of the Dubai real estate sector, prices also appreciated incredibly. While most areas reported year-on-year increases, a few segments accounted for moderate growth, signaling towards balanced growth.

A YoY change from 2024 to 2025 in Dubai’s high-end apartment communities show:

• Business Bay – A 5% rise with average psf values around AED 2,455 in apartments.
• Downtown Dubai - A 9% rise with average psf values around AED 3,119 in apartments.
• Bluewaters Island - A 4% rise with average psf values around AED 4,975 in apartments.
• Jumeirah Lake Towers – An 11% rise with average psf values around AED 1,887 in apartments.
• Jumeirah Village Circle - A 14% rise with average psf values around AED 1,462 in apartments.
• Jumeirah Village Triangle - A 13% rise with average psf values around AED 1,282 in apartments.

According to Engel & Volkers’ annual report, A YoY change from 2024 to 2025 in Dubai’s sought-after townhouse and villa communities show:

• Emirates Living - A 13% growth with average psf values around AED 2,058.
• Palm Jumeirah - An 18% growth with average psf values around AED 6,989.
• Tilal Al Ghaf - A 20% growth with average psf values around AED 2,023.
• Dubai South – An 8% growth with average psf values around AED 1,302.
• Arabian Ranches - A 23% growth with average psf values around AED 2,252.
• Damac Hills - A 10% growth with average psf values around AED 1,816.

Luxury Sales in Dubai 2025

High-end properties, like waterfront homes, boutique apartments, and branded residences, reported robust momentum throughout 2025. The activity in the luxury segment reached its zenith in the second quarter (Q2) of 2025, with over 2,388 units sold.

i. What Dubai Luxury Real Estate Saw in 2025

• Over 6,765 branded residences and luxury homes exchanged hands in sales.
• Properties priced above Dh 10,000,000 showed strong momentum.
• Districts like Palm Jebel Ali and The Oasis drove the trend through exclusive launches.

ii. Notable Luxury Transactions

• An off-plan penthouse at Bugatti Residences in Business Bay was sold at AED 550 million.
• A secondary villa in Emirates Hills was sold at AED 425 million.
• Palm Jumeirah reported an AED 300 million worth off-plan villa at EOME.

Buyer’s Profile: Top Dubai Buyers by Nationality

The Dubai real estate market resonates with a diverse range of buyer bases. According to the industry experts, this broad buyer spectrum is not anchored by Dubai’s tax efficiency and lifestyle only, but the sector’s maturity, transparency, and depth has key roles in supporting sustained capital inflows.

Top 10 Buyer Profiles in Dubai Residential Market

1. United Kingdom
2. Germany
3. UAE
4. India
5. France
6. Egypt
7. Portugal
8. Lebanon
9. Turkey
10. Spain

Supply and Delivery Momentum

1. Unit Delivery 2025

Considering the surging demand for new houses, developers accelerated their completions:

• Over 43,871 units delivered by the end of 2025, marking a 45% upward trajectory from 2024.
• Over 170 projects were completed by 2025 end, maintaining a transaction momentum.

2. New Pipeline Released

Over 177,624 new units were launched during the year 2025, providing scalable options for buyers and healthy inventory into 2026. This expansion signals seamless confidence in Dubai’s real estate outlook, even as supply growth moderates in several segments.

Commercial Property Growth

Beyond residential, the commercial sector also emerged boastfully in the Financial Year 2025.

Record-setting transactions include:

• 6,086 commercial units sold, generating AED 18.2 billion and marking a 41.1% YoY growth.
• Building sales, however a small segment, also encountered an astounding 306.3% increase, with 65 buildings sold worth AED 211.9 million.
• Approximately 4,446 plots were recorded in Dubai 2025 real estate transactions, generating AED 128.5 billion.

Expert Perspectives: Outlook Toward 2026

Looking ahead into 2026, experts strongly predicts:

• Moderating price appreciation
• Continued demand from foreign buyers
• Sustainable rental yield levels

Closing In!

FY 2025 will be etched in Dubai’s real estate history as the defining year, notable for record-shattering sales volumes, unrivaled investor confidence in the market, and competitive pricing compared to global segments.

Several market leaders highlighted the emirate’s successful transition from short-term growth spikes to a mature and balanced market ecosystem. Given the uninterrupted increase in population, continued infrastructure investment by government, and intelligent supply delivery by developers, the city is ready for accelerated surge and sustainable expansion into 2026 and beyond.

The 2025 performance serves as a blueprint for future homeowners, investors, and market waters and unfolds staggering opportunities as well as enduring market strength.