According to Espace Real Estate, the Dubai residential real estate market expanded rapidly in the third quarter of 2025, with total transaction prices topping AED138 billion ($37.6 billion).
55,280 residential transactions were registered during the quarter, representing an 18% increase over the same period in 2024. This performance demonstrates Dubai’s ongoing market expansion and strong investor confidence.
According to John Lyons, Managing Director of Espace Real Estate, “in Q3 2025, the Dubai residential market continues to display strength and depth, reflecting good investor confidence and expanding long-term demand.”
“While overall activity remains high, we are seeing a more mature market dynamic take shape, one that is increasingly driven by end-user demand.”
Off-plan trades in Dubai
70% of all home sales occurred off-plan, up from 59% in the first half of 2025. This suggests that investors are still willing to capitalize on the emirate’s population growth and the liquidity that is allowing for the development of new projects.
The price range of AED5-10m ($1.36-2.72m) experienced the greatest annual gain, growing by 60%, demonstrating the strength of mid-to-upper-tier communities.
The study also discovered a shift in consumer behavior, with more buyers viewing Dubai as a permanent residence, reinforcing the demand for family-friendly real estate.
Villa and apartment price growth
The average cost of 31 of the 34 villa and townhouse complexes analyzed in the survey increased.
Due to limited supply, 20 of the 22 villa and townhouse regions experienced price rises, with an average increase of 22%.
Prices for flats rose by an average of 12% in 11 of the 12 municipalities.
Analysts estimate that the price growth of flats will be more modest than that of villas and townhouses, as apartments account for 85% of future supply.
Rental market trends
As new unit handovers alleviated pressure on established areas such as Dubai Marina, JBR, and JLT, and some demand transferred to more reasonably priced neighborhoods such as Jumeirah Village Circle (JVC), Dubai’s rental market appeared more balanced.
According to Espace Real Estate, this trend shows the maturation of Dubai’s housing ecosystem, resulting in a more stable rental environment for the overall market.
Steady demand heading into 2026
Espace Real Estate expects that structural demand, liquidity, and strong fundamentals will continue to support the market after 2026, as Dubai’s population rises and its reputation as a long-term destination strengthens.
