Steve R Harris

Category: Market Reports

Dubai property market reports.

  • Property market report 23 Oct 2025

    The property market in Dubai continues to impress, with momentum building well into the final quarter of the year.

    Q3 2025 saw 59,228 property sales, with a total transaction value of AED 170.7 billion — approximately £36.6 billion.

    Year-to-date (Jan–Sept) the market has achieved around 158,200 transactions worth AED 498.8 billion (about £107 billion), up +20.5% in volume and +32.3% in value compared with the same period last year.

    What’s Driving the Momentum

    • Strong international appeal: Dubai remains a global magnet for investors and residents alike, offering an unmatched combination of safety, tax advantages, and lifestyle.
    • High activity across all property types: Apartments lead the charge, but villas and townhouses continue to attract family buyers and long-term investors.
    • Rental market strength: Many emerging communities are delivering rental yields of around 7–8%, appealing strongly to overseas buyers.
    • Infrastructure and policy confidence: Metro expansion, improved roads and freehold clarity continue to enhance Dubai’s long-term real-estate credentials.

    Key Statistics — Dubai Property Market (Q3 2025)

    • Total transactions: 59,228 property sales
    • Total transaction value: AED 170.7 billion (≈ £36.6 billion)
    • Apartment sales: ≈ 49,370 units worth AED 94.3 billion (≈ £20.2 billion)
    • Year-to-date (Jan–Sept 2025): ~158,200 transactions worth AED 498.8 billion (≈ £107 billion)
    • Value growth vs 2024: +32.3% year-on-year
    • Volume growth vs 2024: +20.5% year-on-year

    Areas & Property Types to Watch

    • Apartments: Still the dominant segment by volume, offering accessible entry points and healthy yields.
    • Villas and townhouses: Continued strong demand from families and end-users prioritising space and community living.
    • Emerging areas: Locations such as Dubai South and Jumeirah Village Circle are performing well thanks to affordability and improving infrastructure.
    • Off-plan projects: Developers are offering appealing payment plans and incentives, allowing buyers to lock in future value.

    Why Confidence Is High

    • Market liquidity is excellent, record volumes ensure both buyers and sellers can transact efficiently.
    • Rental yields remain among the world’s best, often double those found in major Western cities.
    • Relative affordability, even after recent gains, Dubai property remains attractively priced compared with London, New York, or Singapore.
    • Diverse buyer base, locals, residents and international investors all actively participating, which underpins stability.

    Quick Takeaways

    • Buyers: Focus on quality developers and well-connected communities.
    • Investors: Rental yields of 7–8% in many districts keep Dubai ahead of most global markets.
    • Sellers: Demand is robust — professional presentation and realistic pricing will attract serious buyers.
    • Landlords: Rising rents and low vacancy rates make now an excellent time to review lease terms and maximise returns.

    Final Word

    Dubai’s real-estate market remains one of the standout success stories of 2025 — vibrant, liquid and full of opportunity. With strong fundamentals and a confident investor base, the outlook for the remainder of 2025 and into 2026 remains decidedly positive.

  • Property market report 16 Oct 2025

    Dubai’s property market remains exceptionally active in Q3–Q4 2025. Strong buyer demand — especially from international and resident investors — has driven robust sales volumes and continued rental growth in prime areas.

    Market snapshot

    • Transaction value and volume remain high: Q3 2025 recorded ≈ AED 138 billion of residential transactions (55,280 deals) — roughly +18% y/y — showing continued liquidity across the market. 
    • Off-plan still dominates activity: Off-plan accounted for a very large share of sales in 2025; multiple reports put off-plan transactions at or near 70% of sales in recent quarters. 
    • Price index up strongly over the last few years, but caution flags exist: Prices surged since 2022 (reports note very large cumulative gains) but credit agencies and analysts warn of a possible double-digit correction later in 2025/2026 if new supply comes through quickly. (Fitch flagged up to ~15% downside as a scenario). 
    • Rents are rising, especially for villas and prime apartments: H1–H2 2025 data and platform reports show notable rental growth in Downtown, Palm and Marina and continued strong demand for villas. 

    Key numbers

    • Q3 2025 residential value: AED 138bn ≈ £30.4bn (Q3). Transaction count ≈ 55,280 deals. 
    • YTD sales volumes (2025): Over 120,000+ units sold YTD per DLD / market trackers. 
    • Off-plan share: ~70% of sales in recent quarters were off-plan according to press coverage. 
    • Price momentum vs risk: Authorities’ indices show very strong Y/Y gains over the last 2–3 years; Fitch warned a possible ~15% correction into late-2025/2026 if high delivery volumes materialise. 
    • Prime areas where rents/prices are strongest: Downtown Dubai, Palm Jumeirah, Dubai Marina and selected villa communities — all showing above-market rental gains in 2025. 

    Why the market is performing

    1. Strong demand from internationals + resident buyers: Visa liberalisation, positioning as a global hub and relatively attractive taxation have continued to draw capital. 
    2. Supply surge: Developers have a large pipeline of deliveries due over the next 12–24 months; if many units are handed over quickly, upward price pressure could ease or reverse. Fitch and other analysts highlight this as the principal downside risk. 
    3. Shift back to off-plan buying: Developers and buyers are increasingly using off-plan to lock prices/returns — this boosts short-term transaction volumes but can amplify exposure if projects slow or end-market demand softens. 
    4. Rents supporting investment case: Rising rents, particularly for villas and prime apartments, improve yields for buy-to-let investors and support valuations where rental yield is a key metric. 

    Practical takeaways for buyers, sellers and landlords

    Buyers:

    • Owner-occupiers: still a compelling market in prime areas if you value the lifestyle/long-term capital story.
    • Investors: factor in rising supply; look for projects with strong delivery track records, clear end-user demand, and sensible payment plans. Consider rental yield and vacancy risk rather than pure capital appreciation bets.

    Sellers:

    • Consider staging listings in phases rather than flooding the market — scarcity and good marketing still extract a premium in prime segments.
    • Pricing expectations should account for the potential of a mid-single to low-double digit correction in stressed segments; be realistic on comparable evidence.

    Landlords:

    • Short term: rentals remain strong in many segments, especially villas and prime apartments — landlords who can position competitively will benefit.
    • Medium term: watch new supply and plan for potential softening by reviewing tenancy duration and refurbishment cycles to retain tenants.