According to verified data from DXB Interact and Dubai Land Department sources, the Dubai residential real estate market recorded total transaction values of AED138 billion ($37.6 billion) in Q3 2025 — an 18% year-on-year increase. More than 55,000 transactions were completed during the quarter, reflecting continued investor confidence and a healthy absorption rate across property types.
Off-Plan Sales Dominate the Quarter
Off-plan transactions made up around 70% of all residential sales, rising from 59% in H1 2025. This shift highlights Dubai’s robust project pipeline and sustained appetite from both local and international buyers. Developers such as Emaar, Sobha, DAMAC, and Select Group led the surge, supported by favorable payment plans and strong brand trust.
The AED 5–10 million ($1.4–2.7 million) price bracket saw the fastest expansion — growing approximately 60% year-on-year — as mid-to-upper-tier communities like Dubai Hills Estate, Sobha Hartland, and Business Bay drew high-net-worth investors.
Apartment & Villa Price Growth
Average prices increased in 31 of 34 villa and townhouse communities, rising by an estimated 22% year-on-year in 20 key areas, driven by limited supply and record population growth. Apartment prices rose across 11 of 12 tracked communities, with an average gain of 12%, led by Downtown Dubai, Dubai Creek Harbour, and Jumeirah Village Circle.
Analysts expect a gradual price normalization in the apartment sector as new inventory is released, while villa and townhouse prices will likely remain elevated due to persistent undersupply.
Rental Market Update
The rental market showed signs of stabilizing as new completions reduced pressure on prime zones like Dubai Marina, JBR, and JLT. Renters increasingly favored affordable, amenity-rich areas such as Jumeirah Village Circle (JVC) and Dubai Silicon Oasis (DSO).
According to DXB Interact, average rental yields across Dubai stood at 6.2% — up from 5.9% in Q2 2025 and notably above the global metropolitan average of 4–5%. Prime zones maintained solid occupancy above 90%, suggesting a balanced and maturing rental ecosystem moving into 2026.
Financing Landscape
Mortgage availability remained favorable throughout Q3 2025, with most local banks offering fixed and variable rates ranging between 4.5% and 5.5% for qualified buyers. The UAE Central Bank maintained a supportive monetary stance, helping ensure steady liquidity in the real estate financing sector. According to DXB Interact and leading brokerage data, approximately 37% of all transactions in Q3 involved mortgage financing — the highest proportion since 2018. This underscores the maturity of Dubai’s property market and growing end-user participation.
Who’s Buying in Q3 2025?
The buyer mix remained diverse:
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GCC investors sustained liquidity in central districts.
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European and Asian buyers focused on off-plan and furnished properties.
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Institutional investors expanded their holdings in branded residences like The Address and St. Regis Downtown.
Data shows that over 60 nationalities transacted in Dubai during Q3 2025, reaffirming the emirate’s position as a global investment hub.
Outlook for 2026
Experts forecast that Dubai’s housing market will remain fundamentally strong entering 2026. Key drivers include population growth exceeding 4.1 million, stable financing conditions, and continued infrastructure investment.
Key trends to watch:
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Sustained demand for off-plan properties in core zones.
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Limited villa supply keeping prices firm.
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Rental yields stabilizing between 5.5–6.5%.
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Expansion of digital property sale platforms and DLD PropTech initiatives.
As Dubai strengthens its reputation as one of the world’s most active and transparent real estate markets, investors can expect continued opportunities in both ready and off-plan segments.
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