Dubai Property Market Sets Record in 2025 with AED 686.8 Billion in Sales

Key Takeaways

  • Dubai recorded AED 686.8 billion in property sales in 2025, the highest annual value on record.

  • Transaction value rose 30.9% year on year, while total deal volume increased 18.7% to 215,736 transactions.

  • Off-plan properties accounted for the majority of activity, while resale homes saw stronger price growth per square foot.

  • Most upcoming supply remains in early construction stages, limiting near-term delivery pressure.

  • Rental yields across many communities remained in the 6–8% range, supporting both end-user and investor demand.

Dubai’s real estate market closed 2025 at an all-time high. Based on transaction records from the Dubai Land Department, aggregated and analysed via DXB Interact, total property sales reached AED 686.8 billion across 215,736 transactions.

These figures reflect a year of broad-based market activity across apartments, villas, and plots, supported by both end-user demand and long-term investment participation.

What Drove Dubai Property Market Growth in 2025?

Dubai property market growth in 2025 was supported by population expansion, sustained housing demand, and flexible payment structures offered in the off-plan segment. Total transaction value increased by 30.9%, while transaction volume rose 18.7%, indicating growth in both pricing and deal flow.

Data shows activity spread across multiple price segments rather than being concentrated in a single asset class.

Off-Plan and Resale Market Performance

The off-plan market accounted for the majority of transactions during the year.

  • 149,290 off-plan transactions

  • AED 448.1 billion in total value

  • 69% of total transaction volume

  • 65% of total transaction value

Off-plan activity remained elevated due to extended payment timelines and new project launches across multiple master-planned communities.

The resale market recorded lower transaction volume but stronger price appreciation.

  • 66,446 resale transactions, up 8% year on year

  • AED 238.8 billion in value, up 26.3%

  • 11.3% year-on-year price growth per square foot, compared to 6.7% in the off-plan segment

Completed homes in established communities continued to attract demand due to limited ready inventory.

Median prices in 2025 stood at:

  • AED 1,718 per square foot for off-plan properties

  • AED 1,481 per square foot for resale properties

How the Market Has Changed Over Five Years

A longer-term view highlights the scale of Dubai’s property market expansion.

  • 2020 transaction value: AED 71.5 billion

  • 2025 transaction value: AED 686.8 billion

This represents cumulative growth of 861% over five years.

Transaction volumes increased 521% during the same period, while average prices per square foot rose 60%, from AED 1,170 to AED 1,866.

These figures reflect sustained market participation and rising asset values rather than short-term volatility.

Supply Pipeline and Delivery Timing

As of the end of 2025, Dubai had 1,464 residential projects under construction, representing 452,101 units with an estimated development value of AED 359.4 billion.

Construction progress data provides important context.

  • 65% of units are at 0–20% completion and unlikely to deliver before 2027–2028

  • 12% are at 21–40% completion

  • 23% are above 40% completion and more likely to deliver between 2025 and 2026

Dubai’s total residential stock now stands at approximately 1.4 million units, comprising:

  • 946,770 ready homes

  • 455,224 off-plan units

This construction profile indicates that much of the future supply remains phased over several years.

Area-Level Transaction Trends

By transaction value, the most active areas in 2025 included:

  • Business Bay

  • Dubai Marina

  • Dubai South

  • DAMAC Islands

  • Jumeirah Village Circle

By transaction volume, Jumeirah Village Circle recorded the highest number of deals, with more than 18,000 transactions, supported by accessible pricing and established community infrastructure.

Growing activity in Dubai South and Jabal Ali First reflects increasing interest in areas linked to infrastructure expansion and long-term development plans.

Developer Activity in 2025

Developer performance varied depending on whether volume or value was measured.

By transaction volume:

  • Binghatti recorded approximately 17,000 units

  • DAMAC recorded approximately 15,000 units

  • Emaar recorded approximately 13,000 units

By transaction value:

  • Emaar led with approximately AED 66 billion

  • DAMAC followed with AED 36 billion

  • Binghatti recorded AED 26 billion

  • Nakheel and Sobha followed with values in the low AED 20 billion range

This reflects different development strategies across price segments.

Is Dubai Property a Good Investment in 2025?

Dubai property fundamentals in 2025 were supported by rental income and market liquidity. Gross rental yields across many residential communities generally ranged between 6% and 8%, depending on unit type, location, and acquisition cost.

These yield levels continued to support both local and international investor participation.

Rental Market Performance

The rental market recorded 405,000 transactions in 2025, comprising:

  • 192,000 new rental contracts, up 12.3% year on year

  • 213,000 contract renewals

Median annual rents reached:

  • Studios: AED 46,000

  • One-bedroom apartments: AED 72,000

  • Two-bedroom apartments: AED 115,000

  • Three-bedroom apartments: AED 200,000

Villa rents reflected more limited supply:

  • Three-bedroom villas: AED 160,000

  • Four-bedroom villas: AED 244,000

  • Five-bedroom villas: AED 425,000

Palm Jumeirah villas recorded a 24.2% year-on-year increase, reaching a median rent of AED 1.49 million.

What This Means for Buyers and Investors

Dubai enters 2026 with high transaction volumes, strong rental absorption, and a supply pipeline weighted toward future delivery rather than immediate completion. Market conditions remain supported by population growth, infrastructure investment, and regulatory transparency.

The data confirms that 2025 was a record year for Dubai real estate, with performance driven by depth, liquidity, and sustained demand.

For buyers and investors seeking verified guidance, market insights, and transaction-level analysis, fäm Properties continues to rely on official data and on-the-ground expertise to support informed decision-making.

Latest Launched Projects in Dubai

View All Projects


Leave a Comment

Leave a comment

Subscribe to fäm Properties

Subscribe to fäm Properties

Subscribe to stay up to date with the latest market news.

Featured Posts

  • The Hidden Costs of Buying a Property in Dubai


    71k
  • Tenant’s Rights: Can a Landlord Increase Your Rent in Dubai?


    68k
  • Mega-Projects: These 11 Man-made Islands In Dubai Will Surely Blow Your Mind


    57k
  • Title Deed Verification in Dubai: Ensuring Property Ownership Authenticity


    54k
  • Understanding the Key Differences Between BUA and GFA


    50k