In July 2025, Dubai‘s property market reached a remarkable milestone, with total sales surpassing AED 63.6 billion ($17.3 billion). This surge can be attributed to a combination of tax reforms that have significantly boosted investor confidence, alongside robust activity across various segments of the real estate sector. The latest findings from Property Finder reveal an impressive 27% increase in transaction value compared to the same period last year, underscoring the vibrant dynamics of Dubai’s evolving property landscape.
Factors Driving the Surge in Property Sales
The upward trajectory in property sales was propelled by a combination of robust off-plan transactions, increased secondary market involvement, and a pivotal policy change from the UAE Ministry of Finance. The recent tax reform allows corporate entities to deduct expenses for investment properties valued at fair market prices, offering greater flexibility to investors. This landmark decision is seen as a strategic alignment with global accounting standards and enhances the attractiveness of the UAE property market, particularly for institutional investors.
Highlights of July’s Market Performance
Property Finder’s report underscores several key highlights from July’s activity:
- Secondary off-plan transactions reached AED 7.6 billion ($2.07 billion), marking a staggering 123% increase in value and an 88% rise in volume compared to July 2024.
- The primary ready market reported 1,961 transactions totaling AED 12.2 billion ($3.32 billion), reflecting strong demand for newly completed residential units.
- In total, the primary market generated AED 31.9 billion ($8.7 billion) in sales—a 32% year-on-year growth, fueled by high-value deals in areas such as Wadi Al Safa 3 and Dubai Investment Park.
- The secondary market closely trailed, contributing AED 31.7 billion ($8.6 billion) across 8,221 transactions, a 22% value increase and an 18% volume uptick year-on-year.
Policy Reform and Its Impact on Investor Confidence
The recent update in tax policy by the UAE Ministry of Finance allows for depreciation deductions based on current market value, rather than historical acquisition costs. This substantial shift has been welcomed by both investors and market analysts. Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the impact of these changes, stating, “With a powerful mix of market resilience, investor-friendly policies, and data transparency, Dubai continues to reinforce its position as one of the most attractive real estate markets globally.”
Sleiman further noted that the new ministerial directive enhances how properties are reported for tax purposes, ultimately incentivizing growth among developers, funds, and corporate investors looking to expand their portfolios in Dubai. “Businesses can now claim tax deductions based on real-time market valuations, offering added flexibility and significant potential savings,” he added.
Shifts in Buyer Preferences
As a direct response to escalating rental prices, the market has seen a shift in buyer preferences, with increased demand for smaller residential units such as studio apartments and one-bedroom homes. Apartments have become the preferred choice for buyers, capturing 62% of interest and nearly 80% of rental inquiries.
The surge in ownership among renters is evident, particularly among those looking to mitigate the effects of rising rents:
- Studio apartments accounted for 22% of rental searches and 16% of purchase interest.
- One-bedroom units attracted 36% of purchase inquiries and 40% of rental searches.
This trend reflects a 3% year-on-year increase in the share of buyers opting for apartments over villas, predominantly due to affordability concerns and strategic moves to safeguard against rising rental costs in Dubai.