Dubai’s Real Estate Market Soars in Q3 2025: A Record-Breaking Performance
Q3 2025 has set a new standard for Dubai’s real estate scene, showcasing remarkable growth that has captivated industry analysts and investors alike. With transactions worth a staggering $46.5 billion, the emirate not only reported its highest quarterly transaction volume but also marked the second largest sales value recorded ever.
The data from fäm Properties speaks volumes—during this remarkable quarter, 59,228 sales transactions were logged, collectively valued at AED170.7 billion. This represents impressive year-over-year increases of 17.2% in volume and 19.9% in value. When we zoom out to review the total sales from January to September 2025, the figures soar, reaching AED498.8 billion from 158,200 transactions. This translates to an astonishing 32.33% increase in value and 20.46% in volume compared to the same period in 2024.
Growth Across Property Types
Breaking down the market dynamics reveals interesting trends. Apartment sales led the charge in Q3, with 49,370 transactions valued at AED94.3 billion, reflecting a 25.9% surge in volume year-on-year. Furthermore, commercial real estate recorded a phenomenal 41.9% increase in volume, resulting in 1,565 transactions worth AED4.2 billion. Even plot sales showed remarkable growth, as they rose by 25.7% in volume, culminating in 1,214 deals valued at AED36.1 billion. Conversely, villa sales experienced a decline, with 7,078 transactions worth AED43.1 billion, yet the median price per square foot climbed 11.4% to AED1,685—up from AED858 in 2020.
Demographic Drivers and Investor Confidence
The robust performance of Dubai’s real estate market can be attributed largely to its expanding population, which recently surpassed 4 million. This demographic increase is creating heightened demand across all property segments, aligning with the government’s ambitious goals laid out in the Dubai Economic Agenda D33 and the Urban Master Plan 2040, aimed at doubling the economy while ensuring sustainable urban growth.
Dubai has become a magnet for international wealth, and projections indicate that 9,800 new millionaires will emerge in 2025 alone. This influx reinforces Dubai’s reputation as a leading global marketplace for ultra-luxury real estate, particularly evident in Q3’s record-breaking sales of luxury properties, including a AED250 million villa in Jumeirah Second and an AED174 million apartment at Aman Residences Dubai.
Developer Sales vs. Secondary Market
Examining sales trends reveals that developer-first sales overwhelmingly outnumber resale transactions in the secondary market, prevailing by 73% to 27% in volume and 66% to 34% in value. This strong preference for new developments illustrates the market’s confidence in upcoming projects and off-plan offerings. The price spectrum indicates balanced demand across various tiers: properties above AED5 million account for 10% of sales, while sales split into 38% for properties in the AED1-2 million range and 25% for those below AED1 million.
Notable Project Activity
In the first-sale apartments segment, Binghatti Skyrise emerged as the standout project, selling 1,393 units for AED2.2 billion, with a median price of AED1.5 million. Following closely were Binghatti Hillviews and Binghatti Aquarise, also posting impressive sales figures. In the first-sale villas category, Wadi Al Safa 3 led with 849 units sold for AED5.9 billion, showcasing the strength of luxury villa offerings.
For resale apartments, Azizi Riviera was the market favorite, achieving 238 sold units valued at AED205.4 million. Not to be outdone, Wadi Al Safa 5 claimed the top spot in the resale villas sector, recording 323 units sold for AED1.3 billion.
Historical Sales Growth
Over the years, property sales in Dubai’s Q3 have shown consistent growth, rising from AED17.9 billion in 2020 to AED142.3 billion in 2024. The median price per square foot has nearly doubled during this timeframe, further emphasizing sustained asset appreciation in the market.
Government Initiatives and Infrastructure Development
Government reforms aimed at enhancing investor confidence have also played a pivotal role. Initiatives boosting visa regulations and large-scale infrastructure projects are enhancing connectivity, particularly across key developments like Jumeirah Village Circle, Business Bay, and Dubai Marina.
The Rental Market Perspective
Complementing the sales surge, the rental market has also experienced positive momentum, with rising rental transactions and stable rent increases across prominent residential communities. This coalescence of activity is driving Dubai’s real estate sector forward, making it a compelling destination for investors and residents alike.
With momentum like this, there’s no denying that Dubai’s real estate market is on a remarkable upward trajectory, promising enticing opportunities for both buyers and investors looking to be part of this dynamic landscape.
