A historic third quarter 2025
Dubai’s real estate market continues its upward trajectory with impressive results for the third quarter of 2025. According to the latest official figures, the total value of real estate transactions reached $37.7 billion (≈ AED 138.5 billion), confirming the city’s strength and attractiveness to local and international investors.
This performance builds on an already exceptional first half, driven by continued growth in residential demand, rising prices and a steady flow of foreign investors seeking to secure their capital in a stable, tax-advantaged economic environment.
Apartments top the sales charts
The apartment segment remains the main driver of this growth. Their share of the overall transaction volume continues to grow, driven by rental demand, flexible payment plans and the diversity of supply on the off-plan market (projects under construction).
The most active areas include Business Bay, Dubai Marina, Downtown Dubai, Jumeirah Village Circle and Dubai Creek Harbour, which account for a large proportion of sales. These areas attract both long-term residents and yield-seeking investors, with rental returns ranging from 6% to 9% depending on property type and location.
Villas and townhouses, although representing a smaller share of volume, continue to perform strongly, particularly in premium communities such as Dubai Hills Estate, Arabian Ranches and Palm Jumeirah, where prices regularly reach record levels.
Some of the highest rental yields in the world
One of Dubai’s main assets is its rental profitability, which is significantly higher than in Western markets. While major European capitals struggle to exceed 3% gross yield, Dubai boasts average rates of 7-8%, and even up to 10% in certain emerging districts.
This performance is attracting increasing numbers of foreign investors, notably from France, the UK, India, Russia and South Africa. The absence of income tax, the stability of the dirham indexed to the US dollar, and the increased transparency of the real estate market further strengthen the confidence of international buyers.
The off-plan market plays a key role in this dynamic, accounting for almost 60% of transactions in the third quarter of 2025. Major developers – such as Emaar, Sobha, DAMAC and Azizi – continue to launch new residential and mixed-use projects, meeting the growing demand for modern, sustainable and connected housing.
A favorable economic and demographic environment
The health of the real estate market also reflects the economic vitality of Dubai, whose GDP grew by 3.9% in the first quarter of 2025, according to official data. The non-oil sector, the driving force behind this growth, directly supports real estate activity through job creation, booming tourism and the attraction of high-income expatriates.
Dubai’s population will pass the 4 million mark in 2025, an all-time record. This rapid demographic growth is driving structural demand for housing, offices and infrastructure, ensuring a solid foundation for ongoing real estate development.
Public policies such as long-stay visas (Golden Visa, Blue Visa) and the liberalization of the foreign investment market further strengthen this dynamic by facilitating the long-term settlement of investors and their families.
Positive outlook for 2026
Analysts predict that Dubai’s real estate market will continue its momentum into 2026, driven by several converging factors:
- Stable interest rates, keeping financing affordable,
- Rental demand supported by the arrival of new residents,
- Theopening of new iconic projects, notably on Dubai Islands and Expo City,
- And a clear political will to maintain an investor-friendly environment.
Government initiatives focused on sustainability and the smart city should also boost the long-term value of real estate assets, especially those incorporating green technologies and energy efficiency solutions.
Conclusion: a market stronger than ever
With $37.7 billion in transactions in the third quarter of 2025, Dubai is once again proving its resilience and international appeal. In a global context marked by economic uncertainty, the emirate is establishing itself as a safe haven for real estate investors, offering security, yield and growth opportunities.
The outlook remains positive, underpinned by steady demand, a solid economic environment and a forward-looking urban vision. For buyers and developers alike, Dubai’s real estate market has never looked so promising – and the records set in 2025 could well be surpassed as early as next year.
