Record Breaking Real Estate Surge

Dubai Real Estate Market 2025: Record Transactions and Investor Confidence

Dubai’s property market has delivered yet another milestone. In the first half of 2025, residential property transactions surged nearly fourfold, with 99,146 deals recorded compared to just 26,891 in H1 2021.

Growth has been consistent across all quarters since 2021, with each Q2 outperforming Q1. Q2 2025 alone saw 53,525 transactions, underlining the emirate’s position as one of the most resilient real estate markets globally.

Why Investors Are Turning to Dubai

The momentum is closely tied to shifting global capital flows. With slower growth in mature economies, elevated interest rates, and weaker returns in traditional 60/40 portfolios, investors are rotating into real assets that provide inflation-linked cash flows

Dubai’s competitive edge lies in:

• Fiscal discipline: Debt-to-GDP ratio of ~14%, compared with widening deficits in developed markets.
• Policy and regulation: USD peg, zero capital gains tax, and transparency reinforcing safe-haven appeal.
• Demographics: Sustained expatriate inflows and a growing white-collar workforce fueling housing demand.

Market Highlights: Q2 2025

• Top-performing communities by sales volume: Jumeirah Village Circle (4,870), Business Bay (2,776), Damac Island City (2,680), Dubailand Residence Complex (1,781).
• Ultra-luxury price leaders: Jumeirah Bay Island (AED 13,068 psf), Jumeirah Second (AED 7,623), Umm Al Sheif (AED 7,504).

Off-Plan Dominance

Off-plan sales are now the driving force, climbing from 4,219 in Q1 2021 to 36,184 in Q2 2025, capturing over 70% of total transactions.

• Off-plan residential prices: Up 38% in four years (AED 1,354 → AED 1,866 psf).
• Villas: Prices doubled from AED 834 → AED 1,682 psf.
• Apartments: AED 2,288 psf in Q2 2025.
• Ready properties: Rose 64% to AED 1,642 psf; apartment and villa prices nearly aligned at AED 1,903–1,904 psf.

Office Market Growth

Dubai’s office segment has seen sharp increases, with capital values up 160% since 2021 (AED 768 → AED 1,999 psf). Occupancy has risen from 74% in H1 2021 to 91% in H1 2025, while free zones such as DIFC, DWTC, and Dubai Internet City are nearing full capacity.

The Road Ahead

A supply influx of 136,169 units in 2026 and 122,862 units in 2027 is projected, compared to 60,203 in 2025. While Fitch Ratings anticipates a 10–15% price correction, continued expatriate inflows, phased deliveries, and GDP growth suggest the market has the depth to absorb additional supply.

Dubai remains a global hub for long-duration capital, with institutional investors prioritizing “collateral-backed cash flows” as part of their allocation strategies.

Reliant Surveyors: Independent Advisory You Can Trust

As a RICS-regulated firm, Reliant Surveyors specializes in providing accurate, independent, and transparent valuations across residential, commercial, and specialized asset classes. With a deep understanding of Dubai’s dynamic market, our team ensures clients have the insight needed to make sound investment and financial decisions.

Reliant Surveyors – Valuations That Drive Decisions.