Dubai real estate boom continues with 1,388 luxury deals over $2.7m in Q3
The Dubai property market maintained strong growth in the third quarter of 2025, outperforming seasonal expectations.
According to Engel & Völkers Middle East, total residential transactions climbed 22.7% year-on-year, while commercial sales value surged 31%.
These results reinforce Dubai’s reputation as a global real estate leader, backed by investor confidence, robust end-user demand, and a population that now exceeds four million residents.
Daniel Hadi, CEO of Engel & Völkers Middle East, said:
“Dubai’s property market has reached a new level of maturity. 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’s Residential Market: Consistent Momentum
Off-plan properties continued to dominate the residential landscape, representing nearly 70% of all sales. Resale activity also remained strong in established communities where supply remains tight and lifestyle quality is a key attraction.
Apartments remained the dominant force in Dubai’s property market, representing 87% of all residential transactions. A total of 47,705 units were sold, generating AED 91.4 billion ($24.9 billion) — a 26.4% increase compared to the previous year.
The luxury segment continued to perform strongly, with 1,388 properties sold above AED 10 million ($2.7 million), marking the second-highest quarterly performance on record.
Among standout transactions were a AED 350 million ($95.3 million) off-plan villa in Jumeirah Asora Bay and a AED 173.6 million ($47.3 million) apartment in Aman Residences, Jumeirah.
Emerging areas such as Dubai Science Park, Damac Riverside, and DLRC drew interest from long-term investors, while established districts like Dubai Marina and Downtown Dubai continued to lead activity in the secondary market.
As rental prices rise and residents settle more permanently, an increasing number of families and professionals are choosing to buy homes rather than rent.
Commercial Property Sector Shows Strong Growth
The commercial real estate segment mirrored this upward trend, posting 3,418 transactions worth AED30.4bn ($8.3bn) — up 31% year-on-year.
All categories registered double-digit gains:
- Offices: +45%
- Retail: +37%
- Land: +36.8%
- Buildings: +50%
Business Bay emerged as the top-performing area, recording AED 3.4 billion ($925 million) in property transactions, followed closely by Ras Al Khor, which achieved AED 2.9 billion ($789 million) driven by several large-scale land deals.
The office market proved particularly strong, with 1,151 offices sold for AED3.1bn ($844m) — nearly double last year’s total — amid soaring demand for premium and strategically located workspaces.
Off-plan office sales saw a remarkable surge, rising from 69 units in Q3 2024 to 389 units in 2025, underscoring growing investor confidence in sustainable and future-ready commercial projects.
Hadi added:
“The surge in off-plan office demand shows how investors are adapting to Dubai’s next phase of business growth.”
Economic Outlook and Market Confidence
Dubai’s economic fundamentals remain robust, with the IMF forecasting UAE GDP growth of 4.8% in 2025 and 5% in 2026. This positive outlook is underpinned by continued economic diversification, prudent fiscal management, and sustained inflows of foreign investment.
With inflation staying low and potential interest rate cuts on the horizon, property demand is expected to rise further.
Looking ahead to the final quarter of 2025, Engel & Völkers forecasts sustained growth across both residential and commercial sectors.
Hadi concluded:
“Dubai has demonstrated that sustainable growth is now embedded in its DNA. It is no longer just a city for investment; it is a city of belonging, ambition, and enduring value.”
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