Dubai’s real estate market wrapped up 2025 with the highest sales figures in the emirate’s history. Property sales reached AED 682.49 billion, equivalent to approximately $185.8 billion, marking a remarkable 30.64 percent increase from the previous year.
The Dubai Land Department released data showing that 2024 recorded AED 522.36 billion in property sales. The jump to AED 682.49 billion represents exceptional growth that exceeded market predictions. This marks the fifth consecutive year of strong performance for Dubai’s property sector.
The number of transactions also climbed significantly. Dubai registered 214,912 sales transactions between January and December 2025. This compares to 180,860 transactions during the same period in 2024, showing growth of 18.82 percent.
Mortgage transactions contributed substantially to the market activity. These deals reached AED 179.26 billion through 50,974 separate transactions throughout the year. Property gifts totaled AED 57.25 billion across 9,556 transactions during 2025.
Combined real estate transaction value in Dubai rose to AED 919 billion in 2025. This represents a 20.8 percent increase compared to AED 760.73 billion recorded in 2024. The total number of all types of transactions increased to 275,442, up from 226,117 in the previous year.
Record-Breaking Fourth Quarter Drives Growth
The final quarter of 2025 set new records for Dubai’s property market. Sales transactions in the fourth quarter exceeded AED 187.47 billion, representing the highest quarterly performance ever recorded.
Individual months within the quarter also broke records. December alone saw property sales jump 51.98 percent to AED 64.82 billion across 19,220 transactions. This compared to AED 42.65 billion in December 2024.
November recorded AED 64.22 billion in sales, while October reached AED 58.43 billion. Each month contributed to the quarter’s extraordinary performance. Quarterly sales rose 26.86 percent compared to AED 147.77 billion in the final quarter of 2024.
The consistent monthly growth throughout the year demonstrated sustained market confidence. Strong demand from both domestic and international investors fueled the remarkable performance.
Top Performing Areas and Market Drivers
Business Bay topped the list of areas by sales value in 2025. The district recorded approximately AED 38.31 billion in property transactions throughout the year.
Jumeirah Village Circle came second with AED 24.52 billion in sales. Al Yalayis 1 secured third place at AED 23.75 billion. Dubai Investment Park Second recorded AED 23.16 billion in sales value.
Average property prices continued their upward trend. Sale prices rose 7.6 percent during 2025, reflecting structural changes in market dynamics. The increase signals a shift from speculative investment to long-term settlement purchases.
Four-bedroom layouts dominated both completed and off-plan villa transactions. Communities such as Wadi Al Safa, Al Hebiah Fifth, and Dubai South attracted family buyers focused on permanent residence rather than short-term gains.
Population growth played a crucial role in driving demand. Dubai crossed a historic milestone by surpassing 4.03 million residents in 2025. More than 208,000 new arrivals chose the city during the year. Since 2014, over 1.35 million people have relocated to the emirate.
Industry experts attribute the sustained growth to multiple factors. Government initiatives like the D33 economic agenda provided clear development direction. Regulatory transparency built confidence among local and international investors. Lifestyle-driven relocations replaced purely investment-focused purchases.
Loai Al Fakir, CEO of Provident Estate, commented on the market transformation. He noted that Dubai’s real estate story now centers on permanence rather than just opportunity. People are building futures in the city, not merely investing for quick returns.
The shift toward end-user demand reshaped community priorities across Dubai. Developers adjusted their offerings to meet the needs of permanent residents. Master-planned communities with schools, parks, and retail facilities gained popularity.
Future Supply and Market Outlook
Developers maintained measured delivery schedules throughout 2025. The strategy aimed to balance supply with genuine occupancy demand rather than flooding the market.
Approximately 96,500 residential units are expected to complete in 2026. Supply concentrates in established and emerging master-planned communities across Dubai. Developers continue focusing on quality over quantity in their delivery plans.
The forward pipeline remains controlled for coming years. Projections show 84,979 units scheduled for 2027 and 45,480 units for 2028. This measured approach helps maintain price stability and prevents oversupply concerns.
Market analysts view the controlled supply positively. The alignment between delivery schedules and actual demand supports sustainable growth. Speculation has given way to genuine housing needs as the primary market driver.
Ready property transactions showed particularly strong growth. The segment set new records in both volume and value during 2025. A total of 22,975 ready property transactions were recorded, reflecting growing preference for completed homes.
Off-plan sales remained robust throughout the year. These transactions accounted for significant market activity. Buyers showed confidence in developers’ ability to deliver projects on schedule and to specifications.
Foreign investment continued flowing into Dubai’s property market. International buyers appreciated the emirate’s tax advantages, freehold ownership options, and strong legal protections. These factors positioned Dubai competitively against other global property markets.
The branded residences sector experienced remarkable growth. Transaction volumes in this segment increased nearly 25 percent year-over-year. Projects in communities like The Oasis and Palm Jebel Ali attracted substantial interest.
Prime property prices surged dramatically. Knight Frank’s Prime Global Cities Index showed Dubai’s prime property prices rose 198 percent over five years. Ultra-luxury villas dominated sales above $10 million, accounting for nearly 70 percent of transactions in this price range.
Market observers expect continued growth in 2026. Industry forecasts suggest 10 to 15 percent growth supported by foreign investments and diverse property offerings. The momentum built during 2025 provides a strong foundation for the coming year.
Dubai’s stock market also performed well during 2025. The market rose 17.22 percent throughout the year to reach 6,047.09 points. Market capitalization grew from AED 906.9 billion to AED 992.1 billion, an increase of AED 85.2 billion.
The property sector’s exceptional performance reinforced Dubai’s position as a leading global real estate market. Strong fundamentals, demographic growth, and supportive policies created conditions for sustained success. The 2025 results exceeded expectations and established new benchmarks for the emirate’s property industry.
