Dubai’s Property Market Stays Strong Amid Summer Slump
Performance Overview
Dubai’s real estate sector has defied seasonal expectations, showing remarkable resilience during the typically slower summer months. According to Engel & Völkers Middle East, a prominent player in high-end residential and commercial real estate, residential transactions surged by 22.7% compared to the previous year. Additionally, the commercial sales sector saw a striking 31% increase in value for the third quarter of 2025. These figures highlight Dubai’s status as a global real estate hub, propelled by a combination of investor optimism, increasing end-user demand, and a population that has now exceeded four million residents.
Insights from Industry Leaders
Daniel Hadi, CEO of Engel & Völkers Middle East, commented on the evolving landscape, saying, “Dubai’s property market has reached a new level of maturity.” This shift goes beyond mere investment trends; it reflects a long-term commitment from individuals choosing to make Dubai their home, focusing on building their lives and careers in this vibrant city.
Residential Market Dynamics
Off-Plan Properties Leading the Charge
In the residential space, off-plan properties are taking center stage, comprising nearly 70% of all sales. While resale activities continue in established neighborhoods where demand is high and supply limited, apartments accounted for 87% of transactions this quarter. In total, 47,705 apartments were sold for AED 91.4 billion, an increase of 26.4% compared to last year. Notably, the luxury sector remains robust, with 1,388 transactions exceeding AED 10 million, marking the second-best quarterly performance on record. High-profile sales included a AED 350 million villa in Jumeirah Asora Bay and a AED 173.6 million apartment at Aman Residences.
Emerging Communities and Changing Lifestyles
New off-plan developments such as Dubai Science Park, Damac Riverside, and DLRC are capturing investor interest due to their long-term growth potential. Established areas like Dubai Marina and Downtown Dubai are also witnessing a thriving secondary market. An interesting trend is the noticeable shift towards homeownership, particularly among families and professionals, driven by rising rents and a growing inclination toward stability.
The Commercial Market’s Resilience
Transaction Growth
The commercial real estate market displayed similar upward momentum, registering 3,418 transactions worth AED 30.4 billion—a year-on-year increase of 31%. Every category within this sector showed double-digit growth, including office spaces (+45%), retail (+37%), land (+36.8%), and buildings (+50%). This indicates a strong appetite among institutional investors for income-generating assets. Business Bay emerged as a frontrunner with AED 3.4 billion in transactions, while Ras Al Khor followed closely, driven by substantial land deals.
Shift in Office Demand
The office market has particularly thrived, with 1,151 offices sold for AED 3.1 billion—nearly double last year’s figures. The demand for premium, well-located work environments continues to rise. A notable trend is the jump in off-plan office sales, soaring from 69 in Q3 2024 to 389 in the current year. According to Hadi, “The surge in off-plan office demand shows how investors are adapting to Dubai’s next phase of business growth,” indicating a preference for modern, sustainable workspaces.
Solid Economic Foundations
Dubai’s economic landscape remains promising, with the International Monetary Fund (IMF) forecasting UAE GDP growth of 4.8% in 2025 and 5% in 2026. This outlook is bolstered by the country’s commitment to diversification, fiscal stability, and continuous foreign investment inflows. Inflation remains low, and anticipated interest rate cuts are expected to further enhance real estate demand.
Future Outlook
Looking ahead to the fourth quarter and beyond, Engel & Völkers anticipates sustained growth in both residential and commercial sectors. Daniel Hadi encapsulates the sentiment, noting, “Dubai has demonstrated that sustainable growth is now embedded in its DNA.” The city has evolved into more than just an investment hub; it is a community steeped in ambition, belonging, and lasting value.
About Engel & Völkers
Engel & Völkers is a leading global service company specializing in premium residential and commercial real estate, as well as yachts and aircraft. With over 45 years of experience, the company prioritizes the needs of clients, leading to an extensive range of services and continuous development. Engel & Völkers operates in more than 35 countries across five continents and employs over 16,700 professionals, all dedicated to delivering high-quality service in real estate sales and consultancy.
Engel & Völkers Middle East
Founded in 2014, Engel & Völkers Middle East has established a strong presence in Dubai, featuring a team of over 200 expert agents focusing on high-end properties. The company recently introduced a dedicated commercial real estate division, serving as an entry point to outstanding commercial opportunities in Dubai. Whether renting, buying, or selling, Engel & Völkers Middle East offers tailored solutions to meet diverse real estate goals.
