Dubai residents turn buyers as home deals surge to Dh138 billion in Q3
Dubai’s property surge shows no signs of slowing — but this time, the momentum is being powered by end-users rather than short-term investors.
Both Espace Real Estate’s Q3 2025 Residential Market Overview and Property Finder’s October Community Insights indicate a major shift: more UAE residents are now purchasing homes to live in rather than to flip or rent.
1. Dh138 Billion in Home Sales Over 3 Months
According to Espace Real Estate, Dubai recorded Dh138 billion in residential transactions in Q3 2025 — an 18% increase year-on-year.
This represents 55,280 deals, highlighting remarkable liquidity and broad-based demand.
Growth was supported by both off-plan (70%) and ready (30%) property segments.
“The market continues to show strength and depth, supported by consistent demand across all buyer profiles,” said Espace Real Estate in its report.
2. Off-Plan Boom in Dubai South and Business Bay
The off-plan segment remains the driving force behind Dubai’s growth. Developers’ flexible payment options and steady new project launches continue to attract buyers.
Dubai South, Business Bay, and Jumeirah Village Circle (JVC) led off-plan sales.
Espace also highlighted rising momentum for branded residences and waterfront projects, especially around Dubai Creek Harbour and Palm Jebel Ali, following renewed launch activity.
“The off-plan market’s share of total sales has risen to 70%, reflecting investor confidence and developer innovation,” Espace noted.
3. Family-Focused Communities See Price Growth
Out of 34 communities tracked, prices rose in 31, with the villa segment leading the way.
Emirates Living, Arabian Ranches, and Jumeirah Park recorded double-digit annual increases, while Jumeirah Islands topped the list with villa prices up 22% year-on-year.
Palm Jumeirah retained its position as the most expensive area, with average villa prices exceeding Dh5,000 per square foot.
Transaction volumes also climbed in The Meadows and Jumeirah Golf Estates, supported by strong demand from long-term families.
4. Buyers Staying Longer, Not Speculating
Both Espace and Property Finder report that Dubai’s buyer demographic is evolving. More residents are treating the city as their permanent home.
“We are witnessing a behavioural shift — buyers are no longer looking at Dubai as a short-term opportunity but as a long-term base,” noted Espace.
According to Property Finder, nearly 60% of buyers in October 2025 were UAE residents, with first-time homeowners driving much of the momentum.
Popular areas among first-time buyers include JVC, Dubai Hills Estate, and Damac Hills 2.
5. Rental Market Stabilises After Sharp Increases
After two years of significant rent hikes, rental activity has plateaued.
Property Finder data shows stability in prime areas such as Downtown Dubai, Dubai Marina, and JVC, where new supply has eased upward pressure.
Many tenants are now opting to buy rather than renew leases, especially in affordable villa communities like Arabian Ranches 3, Mudon, and Dubai South, which continue to attract families seeking more space and long-term value.
6. Luxury and Mid-Upper Segments Fuel Growth
While luxury real estate remains resilient, the AED 5–10 million price range saw the sharpest rise — up 60% year-on-year, according to Espace.
Communities such as Dubai Hills Estate, Palm Jumeirah, and Tilal Al Ghaf continue to lead luxury transactions, while JVC and Al Furjan attract consistent mid-market buyers.
What’s Next for Dubai’s Property Market?
With interest rates easing and developers maintaining a strong pipeline of off-plan projects, the final quarter of 2025 is expected to remain active.
Espace forecasts sustained transaction volumes through early 2026 as Dubai continues to attract international investors and long-term residents.
“Dubai’s real estate market is evolving beyond speculation into end-user driven growth,” Espace stated. “The fundamentals — strong population growth, low taxes, and high quality of life — continue to underpin demand.”
Takeaway for UAE Residents
For those still waiting on the sidelines, this could be the ideal moment. Prices are climbing steadily, but stable rents and developer incentives are creating opportunities for long-term buyers.
Dubai is no longer just a city for investment — it’s a city to belong.
Ready to find your dream home or next investment in Dubai? Visit Judhur AlBait to explore off-plan projects, luxury residences, and affordable family communities across the UAE’s booming property market.