There are no indicators that Dubai’s real estate boom will slow down, but this time, end users rather than merely investors are driving it.
More UAE citizens are purchasing homes to live in rather than to flip or rent out, according to Property Finder’s October Community Insights and Espace Real Estate’s Q3 2025 Residential Market Overview.
The following factors are now influencing Dubai’s real estate market:
- In three months, properties worth Dh138 billion were sold.
Residential transactions in Q3 2025 were Dh138 billion, up 18% year over year, according to Espace Real Estate. With 55,280 transactions, that demonstrates exceptional liquidity.
Demand across all categories was demonstrated by the growth, which was driven by both the off-plan (70%) and ready property (30%) markets.
“The market continues to show strength and depth, supported by consistent demand across all buyer profiles,” said Espace Real Estate in its report.
- Off-plan rise in Business Bay and Dubai South
The off-plan boom is still going strong. New launches have remained popular due to developers’ robust project pipelines and flexible payment arrangements.
Off-plan sales were dominated by Dubai South, Business Bay, and Jumeirah Village Circle (JVC).
After increased launch activity, Espace observed significant momentum for branded homes and waterfront developments, especially in the vicinity of Palm Jebel Ali and Dubai Creek Harbour.
“The off-plan market’s share of total sales has risen to 70%, reflecting investor confidence and developer innovation,” said Espace.
- Prices rise in family-friendly communities
Espace discovered that 31 out of 34 communities it tracked had price increases. The villa market continued to be the best-performing sector.
Double-digit annual gains were recorded by Jumeirah Park, Arabian Ranches, and Emirates Living.
With villa prices up 22% year over year, Jumeirah Islands had the biggest increase.
The most costly neighborhood was still Palm Jumeirah, where average home prices were above Dh5,000 per square foot.
The demand from long-term families was reflected in the rise in transaction volumes at the Meadows and Jumeirah Golf Estates.
- Rather than speculating, buyers are staying longer.
Property Finder and Espace both concur that Dubai’s buyer base is evolving. More people consider the city to be their home.
“We are witnessing a behavioural shift — buyers are no longer looking at Dubai as a short-term opportunity but as a long-term base,” noted Espace.
Nearly 60% of purchasers in October 2025 were UAE citizens, according to Property Finder, and first-time homebuyers are mostly responsible for the surge.
First-time homebuyers frequently choose JVC, Dubai Hills Estate, and Damac Hills 2.
- Demand for rentals is stable rather than increasing.
The market is stabilizing following two years of sharp increases in rent. According to data from Property Finder, rental activity has leveled off, particularly in Downtown Dubai, Dubai Marina, and JVC, where availability has increased.
Tenants are still opting to buy or remain in their current residence rather than pay rent. Families looking for room and value continue to be drawn to reasonably priced villa complexes like Arabian Ranches 3, Mudon, and Dubai South.
- Growth is fueled by luxury and upper-mid categories.
Although there is still a strong demand for luxury real estate, Espace reports that the AED 5–10 million market grew at the fastest rate, rising 60% annually.
While JVC and Al Furjan draw consistent mid-tier buyers, communities like Dubai Hills Estate, Palm Jumeirah, and Tilal Al Ghaf continue to dominate premium transactions.
What comes next?
The last quarter of 2025 is expected to be another hectic time due to developers pushing new off-plan launches and interest rate reductions.
Espace anticipates that transaction volumes will be high until the beginning of 2026, particularly as Dubai continues to draw in foreign investment and long-term citizens.
“Dubai’s real estate market is evolving beyond speculation into end-user driven growth,” Espace noted. “The fundamentals — strong population growth, low taxes, and high quality of life — continue to underpin demand.”
Residents of the UAE should take note: If you’ve been unsure, now might be the time. While prices continue to rise, long-term buyers now have more options thanks to stable rentals and accommodating developer offers.
Dubai is becoming a place to belong, not merely a place to invest.
