There are no signs that Dubai’s real estate boom will slow, but this time, end-users, rather than investors, are driving it.
According to Property Finder’s October Community Insights and Espace Real Estate’s Q3 2025 Residential Market Overview, more UAE residents are buying houses to dwell in rather than flip or rent them out.
The following factors are currently influencing Dubai’s real estate market.
1. In three months, properties worth Dh138 billion were sold.
Residential transactions in Q3 2025 totaled Dh138 billion, up 18% year on year, according to Espace Real Estate. With 55,280 trades, this indicates exceptional liquidity.
The growth exhibited demand across all categories, with the off-plan (70%) and ready property (30%) markets leading the way.
“The market continues to show strength and depth, supported by consistent demand across all buyer profiles,” said Espace Real Estate in its report.
- Off-plan rise in Business Bay and Dubai South
The off-plan boom is still going strong. New launches have remained popular due to developers’ strong project pipelines and various payment options.
Off-plan sales were dominated by Dubai South, Business Bay, and Jumeirah Village Circle.
Following increased launch activity, Espace saw strong momentum for branded homes and waterfront complexes, particularly in the neighborhood of Palm Jebel Ali and Dubai Creek Harbour.
“The off-plan market’s share of total sales has risen to 70%, reflecting investor confidence and developer innovation,” said Espace.
- Prices rise in family-friendly communities
Espace discovered that 31 of the 34 localities it surveyed had price hikes. The villa market remained the best-performing segment.
Jumeirah Park, Arabian Ranches, and Emirates Living all reported double-digit annual gains.
The Jumeirah Islands saw the greatest increase in villa prices, at 22% year on year.
The most expensive neighborhood remained still Palm Jumeirah, with average housing prices above Dh5,000 per square foot.
Transaction volumes at the Meadows and Jumeirah Golf Estates increased due to high demand from long-term families.
- Rather than speculating, buyers are staying longer
Property Finder and Espace both agree that Dubai’s buyer base is changing. More people regard cities to be their homes.
“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 purchases in October 2025 were UAE citizens, with first-time homeowners accounting for the majority of the jump.
First-time homebuyers usually select JVC, Dubai Hills Estate, and Damac Hills 2.
- Demand for rentals is stable rather than increasing.
The market is stabilized after two years of significant rent rises. According to Property Finder data, rental activity has leveled off, especially in Downtown Dubai, Dubai Marina, and JVC, where availability has grown.
Tenants are still choosing to buy or stay in their current home rather than paying rent. Families searching for space and value continue to prefer moderately priced villa complexes such as Arabian Ranches 3, Mudon, and Dubai South.
- Growth is fueled by luxury and upper-mid categories.
Although there is still a high demand for luxury real estate, Espace says that the AED 5-10 million market increased at the quickest rate, reaching 60% per year.
While JVC and Al Furjan remain popular among mid-tier buyers, communities such as Dubai Hills Estate, Palm Jumeirah, and Tilal Al Ghaf continue to dominate premium deals.
What comes next?
The fourth quarter of 2025 is projected to be another hectic period, with developers pushing fresh off-plan launches and loan rate decreases.
Espace forecasts that transaction volumes will remain strong until the beginning of 2026, especially as Dubai continues to attract international investment and long-term residents.
“Dubai’s real estate market is evolving beyond speculation into end-user driven growth,” Espace noted. “The fundamentals — strong population growth, low taxes, and high quality of life — continue to underpin demand.”
Residents of the UAE should take note: If you have been unsure, now is the moment. While prices continue to grow, long-term buyers now have additional options thanks to reliable rentals and flexible developer offers.
Dubai is becoming into a place to belong rather than just an investment destination.
