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Dubai Residential Market Q3 2025: Steady Growth Amid Shifting Dynamics
Dubai’s residential property market continued to demonstrate momentum through Q3 2025, confirming the city’s resilience and global investor appeal.
According to Morgan’s International Realty’s Q3 2025 Residential Market Report, transactions volume rose by 10 percent quarter-on-quarter, reaching 55,389 sales valued at AED 154.17 billion.
Although total transactions value dipped slightly compared to Q2 2025’s record AED 170 billion, overall activity remained robust, underscoring healthy demand across both off-plan and ready segments.
Market Performance: Record Transactions, Slight Value Adjustment
A glance at transaction data since 2022 shows just how far Dubai’s property market has evolved. From 24,169 sales in Q3 2022, the city has more than doubled its quarterly activity in three years. This growth trajectory underlines the fundamental strength of Dubai’s demand base, supported by high net migration, a strong employment market, and the emirate’s ongoing appeal to international investors.
While transactions value tapered slightly from AED 170.53 billion in Q2 2025, the overall market retained its upward trajectory. In essence, Q3 2025 represented a period of healthy consolidation after multiple record-breaking quarters.
The Jumeirah Village Circle (JVC) led community activity with 5,238 transactions, while a villa on Palm Jumeirah Frond E achieved the highest price per square foot, AED 23,003.
The Financing Landscape: Cash Remains King, but Mortgages Gain Ground
Cash buyers accounted for 55 percent of total deals, while mortgage-backed transactions represented 45 percent. The continued participation of mortgage buyers is also a positive indicator of end-user demand, particularly within the apartment segment, which represented a dominant 85 percent of total residential transactions during the quarter. Villas accounted for 6 percent, while townhouses made up 7 percent, demonstrating how apartment living continues to define Dubai’s urban lifestyle.
| Property Type | Avg. Price (AED/Sq.Ft) |
|---|---|
| Villas | 2,014 |
| Apartments | 1,957 |
| Townhouses | 1,286 |
| Hotel Apartments | 2,056 |
Off-Plan Market Dominance: Developers Fuel the Cycle
If there’s one story that continues to define Dubai’s real estate market, it’s the dominance of the off-plan sector. The primary market accounted for 69 percent of total transactions, while the secondary (ready) segment represented the remaining 31 percent.
The off-plan market recorded 37,995 sales worth AED 79.34 billion, with an average price of AED 2,053 per square foot. In contrast, the ready market achieved 17,394 sales worth AED 74.83 billion, averaging AED 1,577 per square foot.
Notably, 94 percent of off-plan sales were initial sales, while only 6 percent were resales, suggesting that investors are still actively entering the market at the launch stage rather than flipping units early.
Prime Market Insights: Luxury Redefined
Dubai’s luxury real estate market once again captured international attention, driven by a string of record-breaking transactions. In the apartment segment, Aman Residences Dubai dominated sales with units fetching up to AED 173 million for 10,000-square-foot layouts. Akala Residences Tower and Casa Canal also achieved exceptional performance, underscoring the premium placed on branded and waterfront developments.
For villas and townhouses, La Mer’s Jumeirah Asora Bay Mansion led the quarter with a landmark AED 350 million sale, followed by Emirates Hills Sector E at AED 260 million and Rosewood Residences Dubai, which saw multiple deals exceeding AED 185 million.
On a per-square-foot basis, Palm Jumeirah villas reached a remarkable AED 8,136, while Jumeirah Bay Island apartments averaged AED 6,302: both reaffirming Dubai’s status as one of the world’s premier luxury property markets.
Leasing Market: Resilient and Rewarding
Dubai’s leasing market maintained its strong rhythm through Q3 2025, supported by population growth, corporate relocations, and an influx of expatriate professionals. The quarter recorded 138,493 rental transactions, totaling AED 12.79 billion in annual rental value.
The median rent per square foot stood at AED 94, with one-bedroom units commanding around AED 64,000 per year, and two-bedrooms averaging AED 91,000. Larger family homes remained in high demand, with median rents of AED 155,000 for three-bedroom units and AED 283,000 for four-bedroom properties.
Supply Outlook: The Next Wave of Deliveries
Dubai’s residential pipeline remains robust, with 302,438 units under development across 989 projects as of September 2025. This expanding supply base underscores the city’s commitment to meeting demand from both local and international buyers.
The largest waves of completions are expected between 2026 and 2027, with over 166,000 units scheduled for delivery during that period. Apartments continue to dominate upcoming supply, representing 78 percent of all units, followed by villas and townhouses (21 percent) and hotel apartments (1 percent).
Final Thoughts: Confidence Amid Moderation
While Q2 2025 was characterized by record-breaking sales value, Q3 showed measured stability, a sign of a healthy, sustainable cycle rather than a speculative surge. With continued investment in infrastructure, world-class developments, and strong governance from the Dubai Land Department and RERA, the outlook for 2026 remains promising.
Dubai’s property market has once again proven its ability to adapt, attract, and thrive, positioning itself as a safe haven for capital and a cornerstone for global real estate portfolios.
Source: Morgan’s International Realty - Dubai’s Residential Market Report, Q3 2025
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