The Dubai property market defied seasonal trends in the third quarter of 2025, with total residential transactions climbing 22.7 per cent year-on-year and commercial sales value rising 31 per cent, according to Engel & Völkers Middle East data.
The results reaffirm Dubai’s status as a global real estate powerhouse, driven by investor confidence, strong end-user demand, and a population now exceeding four million.
“Dubai’s property market has reached a new level of maturity,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “We’re seeing not just investor activity, but long-term commitment from people who view Dubai as home, a place to build their lives, careers, and legacies.”
Dubai residential market
Off-plan properties continued to dominate the residential market, accounting for nearly 70 per cent of all sales, while resale activity remained brisk in established neighbourhoods where supply is limited and lifestyle appeal remains strong.
Apartments represented 87 per cent of all transactions, with 47,705 units sold for a combined AED91.4bn ($24.9bn) — up 26.4 per cent year-on-year.
The luxury property segment also maintained its strength, recording 1,388 transactions above AED10m ($2.7m), marking the second-strongest quarter on record.
Standout deals included a AED350m ($95.3m) off-plan villa at Jumeirah Asora Bay and a AED173.6m ($47.3m) apartment at Aman Residences in Jumeirah.
Emerging communities such as Dubai Science Park, Damac Riverside, and DLRC attracted long-term investors, while established districts like Dubai Marina and Downtown Dubai continued to lead secondary market activity.
Rising rents and a growing sense of permanence among residents are prompting more families and professionals to transition from renting to homeownership.
Commercial property in Dubai
The commercial segment mirrored this momentum, recording 3,418 transactions worth AED 30.4bn ($8.3b) — a 31 per cent increase year-on-year.
Every category posted double-digit growth: offices (+45 per cent), retail (+37 per cent), land (+36.8 per cent), and buildings (+50 per cent).
Business Bay led activity with AED3.4bn ($925m) in transactions, followed by Ras Al Khor, which saw AED2.9bn ($789m) in large-scale land deals.
The office market was particularly strong, with 1,151 offices sold for AED3.1bn ($844m) — nearly double last year’s total — as demand for premium, well-located workspaces intensified.
Off-plan office sales jumped from just 69 in Q3 2024 to 389 this year, reflecting investor appetite for future-ready, sustainable work environments.
“The surge in off-plan office demand shows how investors are adapting to Dubai’s next phase of business growth,” Hadi added.
Economic outlook
Dubai’s broader economic fundamentals remain solid. The IMF forecasts UAE GDP growth of 4.8 per cent in 2025 and 5 per cent in 2026, supported by diversification, fiscal stability, and strong foreign investment inflows.
Inflation remains low, and upcoming rate cuts are likely to further boost property demand.
Looking ahead to the final quarter of 2025, Engel & Völkers expects both residential and commercial segments to maintain their upward trajectory.
“Dubai has demonstrated that sustainable growth is now embedded in its DNA,” Hadi said. “It is no longer just a city for investment; it is a city of belonging, ambition, and enduring value.”
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