The Dubai property market has reached $37.7 billion as apartment sales soar, defying trends in the villa segment. Despite a slight decline in overall value, the robust performance of apartment sales demonstrates strong investor confidence and a growing demand for new developments. This article delves into the current dynamics of the market, highlighting the surge in apartment transactions while considering the cooling off of villa sales.
Apartments Lead Investments
In a remarkable display of resilience, apartment sales surged to AED 93 billion ($25.3 billion), marking the highest value ever recorded in Dubai’s residential market.
The total volume of apartments sold climbed 22 percent to 48,646 units, bolstered by a substantial 35 percent increase in off-plan apartment sales compared to the previous quarter.
Interestingly, off-plan transactions constituted 70 percent of the overall sales volume and 59 percent of the total value, both reaching all-time highs. This surge indicates a robust appetite among investors and a significant increase in new project launches throughout the city.
Villas Cool After a Strong Rally
Following a period of exceptional growth, villa and townhouse transactions have cooled by 30 percent quarter-on-quarter, with values experiencing a sharper decline of 34 percent.
This shift is interpreted as a natural adjustment following an impressive performance in the first half of the year, with pauses in new launches prompting buyers to adopt a more selective approach.
Nonetheless, there remains solid demand for larger family homes, particularly in established communities that prioritize lifestyle amenities.
‘Selective Ascent’ in the Market
Louis Harding, CEO at Betterhomes, commented, “Dubai’s property market is experiencing selective ascent rather than straight-line growth.”
He highlighted that in the past year, sales volume and value have increased by 18 percent, resulting in 56,015 transactions valued at AED 139.7 billion ($38 billion), predominantly driven by off-plan sales.
“Demand is tilting decisively toward new supply, particularly apartments, where deals jumped 28 percent year-on-year,” Harding noted. “By contrast, villas have cooled, with prime transactions easing 48 percent quarter-on-quarter, indicating a moment of pause rather than panic.”
Prices Climb to Record Levels
Average residential prices have reached a record AED 1,664 per sq ft, nearly double the levels recorded in 2020.
The 5.2 percent quarterly increase can be attributed to strong demand from end-users, liquidity in the mid-market segment, and favorable global conditions, including a 25-basis-point rate cut by the U.S. Federal Reserve, making investments more affordable for international buyers.
Dubai’s supply continues to expand steadily, with more than 28,500 units delivered so far in 2025 and over 200,000 additional units expected by 2027.
Apartments accounted for 85 percent of Q3 handovers, concentrated in prime mid-market districts such as Jumeirah Village Circle, Business Bay, and Town Square, which consistently attract demand.
Rental Demand Robust
Leasing transactions at Betterhomes have surged, rising 92 percent year-on-year and 29 percent quarter-on-quarter, indicating a strong rental appetite across Dubai.
Average annual rents have reached AED 196,000 ($53,380), with apartments forming the majority of leasing activity.
Dubai Real Estate Outlook: Steady Growth Ahead
As Dubai approaches the final quarter of 2025, the property market is poised for continued growth.
Factors such as sustained population growth, ongoing infrastructure development, and strong global investor interest underpin one of the world’s most dynamic and resilient property markets, reaffirming that the Dubai property market has hit $37.7 billion as apartment sales soar while villa deals cool.