Dubai: Record real estate market expected in 2025

A continuously expanding market

The third quarter of 2025 marked a new peak for Dubai's real estate market. The total value of transactions reached $37.7 billion (approximately AED 138.5 billion), extending the remarkable momentum observed since the beginning of the year. This result illustrates the structural strength of the market, driven by sustained residential demand and a steady influx of foreign investors seeking stability and returns.

Market growth is based on a coherent economic ecosystem: an attractive tax framework, legal certainty, modern infrastructure, and a diversified local economy. These elements position Dubai as a leading investment hub in a global context of financial volatility.

Apartments, the engine of growth

The apartment segment continues to occupy a central place in the market structure. Its majority share of transactions reflects the vitality of the rental market and the growing popularity of off‑plan purchases. Flexible payment plans, architectural quality, and rapid project completion further enhance the appeal for international buyers.

The most active areas – Business Bay, Dubai Marina, Downtown Dubai, Jumeirah Village Circle, and Dubai Creek Harbour – account for the majority of sales. These districts offer gross yields of between 6% and 9%, depending on the property type and location, levels significantly higher than those observed in mature markets.

Rental yields above the global average

Profitability is Dubai's main draw. While Paris, London, and Berlin struggle to exceed 3% gross yield, the Emirati metropolis maintains average rates of 7% to 8%, reaching up to 10% in emerging markets. This differential fuels the influx of investors from Europe, Asia, and Africa, attracted by the rare combination of high returns and limited risk.

The absence of income tax and the stability of the dirham, pegged to the US dollar, reinforce this attractiveness. The digitization of land registries and increased transparency of transactions also contribute to the confidence of international buyers.

The rise of the off‑plan market

Nearly 60% of sales recorded in the third quarter came from the off‑plan segment. Major developers – Emaar, Sobha, DAMAC, Azizi, and Select Group – are launching numerous residential and mixed‑use projects incorporating sustainability, energy efficiency, and digital connectivity criteria.

This strategy aligns supply with next‑generation demand: smart homes, proximity to economic hubs, integrated community services, and simplified management. It supports long‑term asset value and strengthens Dubai's international competitiveness.

A promising economic and demographic context

The real estate sector's performance is taking place within a favorable macroeconomic environment. Dubai's GDP grew by 3.9% in the first quarter of 2025, driven by non‑oil sectors, tourism, and services. Population growth, with a population exceeding 4 million, is fueling structural demand for housing, office space, and infrastructure.

Government reforms—Golden Visa, Blue Visa, and relaxed foreign investment rules—facilitate the long‑term establishment of entrepreneurs and investors. This structural openness supports high‑quality demand for assets with strong appreciation potential.

Solid prospects for 2026

Projections for 2026 remain optimistic. Interest rates are expected to remain stable, ensuring continued financing. The expansion of new urban hubs, such as Dubai Islands and Expo City, will contribute to the geographical diversification of supply. At the same time, government policies promoting smart cities and environmental sustainability will boost the value of properties incorporating green technologies.

Developers anticipate a renewed surge in off‑plan sales, fueled by buyer confidence and medium‑term economic visibility. Institutional and private investors are increasing their exposure, convinced of the market's remaining growth potential.

Exemplary resilience in the face of the global situation

In a global environment marked by uncertainty and caution, Dubai stands out for its ability to maintain a balance between profitability, security, and urban innovation. The diversity of investor profiles—individuals, family offices, and international funds—gives the market rare depth and limits the risk of overheating.

This strength reflects the maturity acquired by the local real estate sector, now considered as a fully‑fledged asset class, comparable to major global financial centers.

Conclusion: Dubai, a global benchmark for real estate performance

With over $37 billion in transactions in the third quarter of 2025, Dubai confirms its position as a regional leader and international benchmark. The emirate embodies a model of stability and profitability in a changing global economy. For savvy investors, the market offers a dual advantage: capital protection and long‑term growth prospects.

The structural foundations – population growth, open policies, urban innovation – suggest a natural continuation of this dynamic in 2026. Dubai's real estate market appears stronger than ever, ready to reach new heights.