A latest analysis indicates a behavioural shift among buyers, with a growing number viewing Dubai as a long-term residence rather than a short-term investment destination.
According to the latest Dubai Residential Market Overview, Q3 2025 report released by Espace Real Estate, the sentiment continues to support sustained demand for family-oriented homes and community-based developments. The AED five million to AED 10 million segment recorded the largest year-on-year increase in transactions, rising by 60 percent, driven by mid-to-upscale communities across Dubai, it added.
Meanwhile, Dubai’s residential real estate market recorded AED 138 billion in transaction value during the third quarter of 2025, maintaining strong momentum across both off-plan and ready property segments, showed the report. The quarter registered 55,280 residential transactions, marking an 18 percent increase compared to the same period in 2024. The performance reflects sustained investor confidence, robust liquidity, and growing end-user demand, further reinforcing Dubai’s position as one of the world’s most dynamic and resilient property markets.
Off-plan transactions dominated activity during Q3, accounting for 70 percent of total residential sales — up from 59 percent in the first half of 2025. The report attributes this to the surge in project launches supported by population growth, ample liquidity, and strong developer pipelines.
Villa prices increase
The report notes that prices rose in 31 of the 34 villa and townhouse communities tracked during the quarter, reflecting the segment’s continued strength and limited supply. Of the 22 villa and townhouse areas monitored, 20 recorded price increases, with the average rise standing at 22 percent.
Apartment prices also grew, with 11 of 12 tracked communities posting an average increase of 12 percent. However, with 85 percent of upcoming supply consisting of apartments, this segment is expected to experience more moderate price growth compared to villas and townhouses in the near term.
The rental market showed signs of greater balance as new apartment supply entered the market. Established districts such as Dubai Marina, JBR, and JLT saw slower rental activity as tenants shifted toward emerging and more affordable communities like Jumeirah Village Circle (JVC). This trend reflects a maturing market with a more even distribution of demand across price tiers.
Espace Real Estate’s own figures show a 148 percent year-on-year increase in new property listings and a 77 percent rise in buyer registrations, demonstrating heightened activity and confidence among both buyers and sellers.
The report concludes that with Dubai’s population growth, robust infrastructure investment, and its reputation as a long-term destination for global residents, the residential real estate market is expected to remain supported by strong structural demand, liquidity, and stable economic fundamentals as it heads into 2026.
