The Dubai real estate market continued its strong momentum in the third quarter of 2025, with both office and residential sectors showing sustained growth driven by population gains, robust economic activity, and rising investor confidence, according to Savills’ latest Dubai Market in Minutes report.
Dubai’s residential sector sustained its record-breaking performance in Q3 2025, underpinned by continued population inflows, growing homeownership among expatriates, and increased migration of high-net-worth individuals.
Transaction volumes remained above 50,000 for the second consecutive quarter, far surpassing historical averages.
Dubai residential real estate record
Apartments dominated the market, accounting for 86 per cent of all transactions, up from 75 per cent in Q1, while off-plan sales represented 69 per cent of total deals, underscoring strong investor confidence in new launches.
Andrew Cummings, Head of Residential Agency, Middle East at Savills, said: “Dubai’s residential market continues to attract a diverse pool of buyers, from end-users seeking long-term value to investors drawn by the emirate’s stable regulatory framework and global appeal.
“The growing preference for homeownership reflects the city’s transition from a transient to an established, family-friendly market.”
Average prices per square foot reached new highs for both apartments and villas, supported by luxury project launches across key master developments.
In the prime residential segment, approximately 1,500 transactions exceeded AED10m ($2.72m), with villas accounting for 73 per cent of this activity.
Q3 2025 also saw 8,500 new units completed, bringing total completions for the year to nearly 30,000, matching 2024’s annual total.
More than 250,000 units are expected to be delivered by 2028, indicating a strong development pipeline.
Office sector: rents surge 35% year-on-year
Dubai’s office market maintained a positive trajectory through Q3 2025, supported by strong non-oil economic growth and a steady influx of new companies.
Average office rents reached AED 233 per sq ft ($63.4) — up 4.5 per cent quarter-on-quarter and 35 per cent year-on-year — reflecting sustained demand despite limited new supply.
Leasing activity remained buoyant throughout the summer, a period traditionally marked by a slowdown.
Expansion, relocation, and new market entries collectively dominated transactions.
Technology and media firms and pharmaceutical companies each accounted for 29 per cent of total leasing activity, followed by the consulting and energy sectors at 14 per cent each.
Defying expectations
Toby Hall, Head of Commercial Agency, Middle East at Savills, said: “Dubai’s office market continues to defy expectations, with strong leasing activity across both established and emerging submarkets.
“The combination of limited Grade A availability and sustained occupier confidence has maintained upward pressure on rents, while new developments such as branded and strata-led offices are reshaping future demand.”
Developers plan to complete around 1 million sq ft of new office space between late 2025 and early 2026, much of which they have already pre-leased — a sign of strong forward demand.
Developers including Rove Hotels, Danube, and Capital One have announced innovative projects targeting SMEs and fractional ownership models.
The report also noted that Dubai’s population surpassed 4 million during the quarter, while the UAE’s GDP is forecast to grow 4.7 per cent in 2025, reinforcing long-term demand for high-quality commercial real estate.
Population growth and wealth migration
Population growth remains a critical driver of the market, with Dubai’s population expected to reach 5 million by 2030.
The emirate continues to attract global wealth, with Henley & Partners forecasting that 9,800 millionaires will relocate to the UAE in 2025.
Savills expects Dubai’s real estate market to maintain strong fundamentals through the remainder of 2025.
The office sector is projected to see moderate rental growth as new Grade A completions enter the market, while residential demand is set to remain robust, supported by quality-of-life advantages and sustained investor confidence.
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