The Dubai real estate market has demonstrated remarkable resilience and growth in the third quarter of 2025, marked by the sale of 50,000 homes and a 35% increase in office rents. According to Savills’ latest report, this surge can be attributed to a combination of strong population growth, thriving economic activity, and heightened investor confidence. The robust performance across both residential and commercial sectors reflects a transformative phase for Dubai, positioning it as an increasingly attractive location for both buyers and renters.
Resilient Performance in Residential Real Estate
The residential real estate sector in Dubai has sustained its record-breaking trajectory in Q3 2025. This impressive performance is largely fueled by ongoing population inflows, growing homeownership among expatriates, and an increase in high-net-worth individuals moving to the emirate.
Transaction volumes have exceeded 50,000 for the second consecutive quarter, significantly outpacing historical averages. This figure underscores the thriving demand within the market and reflects a landscape where homeownership is becoming increasingly favorable.
Dubai Residential Real Estate Record
In this vibrant market, apartments have emerged as the leading choice for buyers, representing 86% of all transactions—a notable rise from 75% in the first quarter of 2025. Furthermore, off-plan sales accounted for 69% of total deals, signaling robust investor interest in new developments.
Andrew Cummings, Head of Residential Agency at Savills, remarked: “Dubai’s residential market continues to attract a diverse pool of buyers, from end-users seeking long-term value to investors drawn by the emirate’s stable regulatory framework and global appeal.”
He added, “The growing preference for homeownership reflects the city’s transition from a transient to an established, family-friendly market.”
Average prices per square foot have reached record levels for both apartments and villas, bolstered by the launch of luxury projects in prime master developments. Approximately 1,500 transactions exceeded AED 10 million ($2.72 million) in the prime residential segment, with villas making up 73% of this activity.
In Q3 2025, an additional 8,500 housing units were completed, bringing the total for the year to nearly 30,000—matching the annual total for 2024. With over 250,000 units expected to be delivered by 2028, the development pipeline in the Dubai real estate market shows promising prospects.
Surging Office Sector Rents
The office segment of the Dubai real estate market has also demonstrated robust growth during Q3 2025, with rents soaring by 35% year-on-year. This increase is partly due to strong non-oil economic growth and a steady influx of new businesses.
The average office rent reached AED 233 per sq ft ($63.4), showing a quarterly increase of 4.5%. Even during the summer months—a period typically characterized by reduced activity—leasing activity remained strong. Expansion, relocation, and new entrants dominated the leasing landscape.
Particularly noteworthy is that technology and media firms, as well as pharmaceutical companies, accounted for 29% of total leasing activity, with consulting and energy sectors following closely at 14% each.
Defying Expectations in Rental Growth
Toby Hall, Head of Commercial Agency at Savills, stated: “Dubai’s office market continues to defy expectations, with strong leasing activity across both established and emerging submarkets.”
He explained, “The combination of limited Grade A availability and sustained occupier confidence has maintained upward pressure on rents, while new developments such as branded and strata-led offices are reshaping future demand.”
Developers plan to introduce around 1 million sq ft of new office space between late 2025 and early 2026, much of which has already been pre-leased, signaling strong forward demand. Innovative projects targeting small and medium-sized enterprises (SMEs) and fractional ownership models are also on the horizon.
The report notes that Dubai’s population has surpassed 4 million during this quarter, with forecasts suggesting a 4.7% growth in UAE GDP for 2025, reinforcing the long-term demand for high-quality commercial real estate.
Population Growth and Wealth Migration
The continual growth of Dubai’s population remains a vital factor propelling the real estate market, with projections indicating that it could reach 5 million by 2030. The emirate continues to attract considerable global wealth, with reports predicting that over 9,800 millionaires will relocate to the UAE in 2025.
Savills anticipates that the fundamentals supporting Dubai’s real estate market will remain strong throughout 2025. The office sector is expected to see moderate rental growth as new Grade A spaces are added to the market, while the residential sector is poised for sustained demand, driven by quality-of-life advantages and enduring investor confidence.