Dubai’s real estate market shrugged off the seasonal lull in 3Q 2025, with residential transaction values up 22.7% y-o-y to AED 138.7 bn and commercial sales values surging 31%, according to a press release from Engel & Völkers Middle East citing their latest report (pdf). The uptick was fueled by continued investor appetite, end-user demand, and a population now exceeding 4 mn.

Off-plan boom continues: Off-plan properties accounted for nearly 70% of residential sales, while apartments made up 87% of all transactions. Some 47.7k apartment units worth AED 91.4 bn were sold during the quarter, up 26.4% y-o-y.

The luxury segment also held firm with 1.4k transactions above AED 10 mn, up 26.6% y-o-y and the second-strongest quarter on record. The quarter’s largest transaction was a AED 350 mn off-plan villa in Jumeirah Asora Bay.

New areas, home ownership gain traction: Demand spilled into emerging communities such as Damac Riverside and Dubai Science Park, while resale activity stayed concentrated in Dubai Marina and Downtown, where supply remains tight. Engel & Völkers noted a growing shift from renting to ownership, particularly among long-term residents seeking stability amid rising rents.

Commercial market keeps pace: The sector saw 3.4k transactions totaling AED 30.4 bn, driven by robust office and land activity. Office sales nearly doubled to AED 3.1 bn as demand for premium, well-located space climbed. Off-plan office sales jumped more than fivefold on a yearly basis to 389 transactions, reflecting growing investor confidence in Dubai’s business growth prospects.

On the leasing front, the market held largely steady as tenants opted for renewing leases rather than moving as prices rose, with new contracts down 2.7% y-o-y. Apartments accounted for 88.8% of contracts, with areas like Business Bay, Jumeirah Village Circle, and Silicon Oasis seeing the most demand, whilst Damac Hills 2, Mirdif, and Emirates Living proved most popular for townhouses and villas.

Outlook: Engel & Völkers expects momentum to carry into year-end as low inflation and potential rate cuts sustain demand.

REMEMBER- Dubai Land Department data logged AED 237 bn in transactions across Dubai’s wider property market during 3Q 2025, up from AED 200 bn a year earlier. Sales contributed AED 169.2 bn, led by ready units and apartments, while land transactions totaled AED 61.6 bn. The nine-month tally neared AED 500 bn.

Most analysts expect prices to cool slightly in 2H 2025. Fitch Ratings projects a correction of up to 15% in home prices, while Moody’s and Deloitte forecast a slowdown or stabilization in price and rent growth. Supply is also ramping up, with nearly 250k new homes due in the coming years — a 30% increase — as new developers flood the market.

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