Dubai Real Estate Sees Record Growth as Off-Plan Sales and Ownership Surge

Dubai’s property market continues to outperform expectations in 2025, with fresh data showing a powerful rise in properties in Dubai sales—particularly in the off-plan and secondary segments—as both local buyers and international investors deepen their commitment to the city.

Strong Transaction Growth

According to eXp Dubai, real estate transactions jumped 26% from May to August compared to the first four months of the year. The Dubai Land Department (DLD) recorded 75,519 transactions during this period, far exceeding the 60,110 logged from January to April. Despite a typical summer slowdown, August alone witnessed 17,879 transactions worth AED 42.4 billion, reflecting a 17% year-on-year increase in volume and a 12% rise in value.

Off-Plan Sales Lead the Market

Off-plan deals made up 58% of transactions between May and August, up from 52.7% earlier in the year. Flexible payment plans and attractive launch prices are drawing global investors eager to secure properties in Dubai before completion. Nearly three-quarters of all August transactions were off-plan—25% higher than a year ago.

Rise in Homeownership

A growing number of tenants are choosing to buy rather than rent. Engel & Völkers Middle East reports a 22% increase in secondary market sales in the first eight months of 2025 versus last year. Rising rents, competitive mortgage rates (around 3.9%), and strong economic stability are motivating families and professionals to purchase homes, reinforcing Dubai’s shift toward long-term resident ownership.

Price and Rental Trends

Average prices reached AED 1,664 per square foot in August, a 16.3% annual gain. Villas in lifestyle communities such as Arabian Ranches (23.2%), Dubai Hills Estate (26%), and Victory Heights (37%) showed particularly strong appreciation. Apartments in Jumeirah Village Circle (17%) and Jumeirah Village Triangle (22.3%) also surged. Despite these increases, Dubai continues to offer exceptional rental yields—averaging 7.12% for apartments and 4.92% for villas—outpacing global cities like London, New York, and Singapore.

Diverse Buyer Base and Government Support

Demand spans Emirati residents and foreign investors, with strong interest from Indian, British, German, Egyptian, and Chinese buyers. The First-Time Home Buyer Programm, launched by the DLD and Department of Economy and Tourism, further boosts activity by offering priority access, special pricing, and tailored mortgage packages for new buyers. Developers such as Emaar, Damac, Binghatti, and Danube have pledged to reserve at least 10% of new homes under AED 5 million for this initiative.

Outlook

Analysts predict that the combined force of resident ownership and robust international investment will keep Dubai’s real estate market on an upward trajectory through year-end and beyond. With government-backed incentives, flexible developer payment plans, and a strong economy, properties in Dubai remain a premier choice for investors seeking long-term value and stability.