Dubai Real Estate: Q3 2025 Residential Transactions Reach AED 138 Billion As Demand Remains Resilient Across Off-Plan And Ready Markets
Dubai’s residential real estate market continued to show remarkable resilience and growth in the third quarter of 2025, according to the latest report from Espace Real Estate (Dubai Residential Market Overview – Q3 2025). Transaction volumes remained robust, supported by sustained demand across both off-plan and ready properties. The new report reinforces the Emirate’s growth trajectory, as Dubai’s residential market continues to demonstrate strength and liquidity with sustained demand across all segments.
The quarter recorded 55,280 residential transactions valued at AED 138 billion, representing an 18 per cent year-on-year increase from the same period in 2024. The performance underscores the market’s ongoing expansion and strong investor confidence in Dubai’s property sector.
“In Q3 2025, the Dubai residential market continued to demonstrate strength and depth, reflecting solid investor confidence and growing long-term demand,” said John Lyons, Managing Director at Espace Real Estate. “While overall activity remains high, we are seeing a more mature market dynamic take shape, one that is increasingly driven by end-user demand.”
Off-plan transactions continued to dominate market activity, accounting for 70 per cent of total residential sales during the quarter, up from 59 per cent in H1 2025. This reflects continued investor appetite to capitalise on Dubai’s population growth story and the ample liquidity supporting new project launches.
The report also highlights a clear behavioural shift among residents. Increasingly, buyers view Dubai as a permanent base rather than a short-term destination, a trend that is shaping purchasing patterns and sustaining demand for family homes. The AED 5–10 million price segment recorded the largest year-on-year increase in transactions, rising 60 per cent, underscoring the continued strength of mid-to-upper-tier communities across the city.
While Q3 2025 recorded strong overall activity, there was still an increase in average prices in 31 out of the 34 villa/townhouse communities tracked in this report.
The rental market is also demonstrating greater maturity. The handover of new apartment stock has contributed to slightly lower levels of activity in established areas such as Dubai Marina, JBR, and JLT, as some demand has shifted toward more affordable communities, including Jumeirah Village Circle (JVC). This is leading to a more balanced rental environment across the wider market.
A clear divergence remains between property types. Of the 22 villa and townhouse communities tracked, 20 recorded price increases, with the average rise standing at 22 per cent. Limited supply within this segment continues to drive price appreciation. In contrast, average selling prices increased in 11 out of 12 apartment communities, with an average rise of 12 per cent. With 85 per cent of the upcoming supply pipeline consisting of apartments, this segment is expected to experience more moderate price growth compared to villas and townhouses.
At a company level, Espace Real Estate recorded a 148 per cent year-on-year increase in new property listings and a 77 per cent rise in buyer registrations, reflecting both expanding market activity and continued confidence among sellers and investors.
As Dubai’s population continues to grow and its reputation as a long-term destination strengthens, the report suggests that the city’s residential market will remain supported by structural demand, liquidity, and strong fundamentals heading into 2026.
