Dubai’s property market is continuing to flourish, with off-plan sales surging and family communities leading the way. A recent overview of the market from Espace Real Estate for Q3 2025 and Property Finder’s October insights highlight a noticeable shift: more people in the UAE are purchasing homes to live in, rather than as investment properties.
Rising Transactions and Steady Demand
Espace Real Estate reports that residential transactions in Dubai reached Dh138 billion in Q3 2025, marking an 18% increase compared to the same period last year. This includes 55,280 deals, underscoring the market’s strong liquidity. Notably, the off-plan sector, which accounts for 70% of total transactions, remains dominant, with developers offering flexible payment plans and a solid pipeline of new projects.
Key areas like Dubai South, Business Bay, and Jumeirah Village Circle (JVC) have led the charge in off-plan sales, with a growing interest in branded residences and waterfront projects around locations such as Dubai Creek Harbour and Palm Jebel Ali. The shift to off-plan properties reflects both investor confidence and the appeal of innovative new developments.
Prices have risen across the city, with 31 out of 34 tracked communities experiencing price increases. Villa markets, in particular, have been strong performers. Popular communities like Emirates Living, Arabian Ranches, and Jumeirah Park saw double-digit growth, with Jumeirah Islands leading the way with a 22% year-on-year increase. Palm Jumeirah remains the priciest area, with villas now exceeding Dh5,000 per square foot on average.
Shifting Buyer Demographics
Both Espace and Property Finder agree that the profile of property buyers is evolving. The focus is increasingly on long-term residents rather than short-term investors. Espace noted a behavioural shift, with buyers no longer viewing Dubai solely as an investment opportunity but as a place to settle. Property Finder’s data shows that nearly 60% of buyers in October 2025 were UAE residents, many of whom were first-time homeowners. Popular areas for first-time buyers include JVC, Dubai Hills Estate, and Damac Hills 2.
The market is also seeing a stabilisation in rental prices after two years of significant increases. Areas such as Downtown Dubai, Dubai Marina, and JVC have seen rental activity plateau, largely due to improved supply. Tenants are increasingly opting to purchase homes rather than rent, particularly in family-friendly communities like Arabian Ranches 3, Mudon, and Dubai South.
Luxury and Mid-Tier Markets
The luxury property market remains buoyant, especially in the AED 5–10 million range, which has grown by 60% year-on-year. Dubai Hills Estate, Palm Jumeirah, and Tilal Al Ghaf continue to lead luxury transactions. At the same time, mid-tier communities like JVC and Al Furjan maintain steady demand, with many buyers seeking value and space.
Despite a slight dip in interest rates, the final quarter of 2025 is expected to be busy as new off-plan launches and developer offers continue to attract both local and international buyers. Espace predicts high transaction volumes will persist into early 2026, as Dubai’s appeal as both an investment hub and a long-term home strengthens.
Conclusion
Dubai’s real estate market has evolved beyond speculation, driven by a growing base of end-users seeking long-term homes. While prices continue to rise, the stability in rent prices and flexible offers from developers provide ample opportunities for those looking to settle in the city. As Dubai continues to attract residents from around the world, the fundamentals strong population growth, low taxes, and high quality of life remain central to the city’s enduring property appeal.
For those considering home ownership, this may be the ideal time to make a move.
