Dubai closes 2025 with record Dh547bn property market performance

Saturday, 17 January 2026

Dubai’s real estate market wrapped up 2025 at a historic high, driven by strong economic growth, rising population, resilient pricing and sustained investor confidence across residential segments.

Key Highlights:

  • Total residential sales value reached a record Dh547bn in 2025, up 28% year-on-year
  • 203,000 transactions completed, marking a 20% annual increase in volume
  • UAE real GDP growth supported market momentum, with 2026 growth forecast above 5%
  • Dubai population increased 5.4% year-on-year to 4 million, strengthening housing demand
  • 17.5 million overnight visitors boosted absorption in established communities
  • Studios and 1–2 bedroom apartments accounted for 77% of transactions
  • 72% of deals fell within the Dh500,000–Dh3m range, highlighting strong market depth
  • Off-plan sales led activity, contributing 65% of total transactions
  • Apartment sales reached Dh325bn, while villas and townhouses recorded Dh221bn
  • Average residential prices rose 12% year-on-year to Dh1,673 per sq ft
  • Leasing transactions increased over 60%, supported by family-led demand
  • Average rents remained steady at Dh207,000 per year
  • Mortgages accounted for 52% of purchases, reflecting broad-based buyer confidence
  • Investors represented 57% of buyers for the fourth consecutive year
  • Prime residential prices climbed 26% year-on-year, with average values reaching Dh30m