In July 2025, the Dubai property market experienced remarkable growth, with total transaction values surpassing AED 63.6 billion (approximately $17.3 billion). This robust performance reflects a 27 percent increase year-on-year and a significant 24 percent uptick in transaction volume. Driven by strategic tax reforms and heightened investor confidence, Dubai’s property sales showcase the emirate’s appeal as a leading global real estate destination.
The impressive rise in property sales was propelled by a surge in off-plan purchases, along with escalating activity in the secondary market. A pivotal moment came when the UAE Ministry of Finance enacted reforms allowing corporate tax deductions on investment properties assessed at fair value. This adjustment aligns with international accounting standards and enhances investor flexibility, as noted in the latest market performance report by Property Finder.
Highlights of July’s Property Market Performance
Among the standout statistics highlighted in the report, off-plan transactions contributed significantly, reaching AED 7.6 billion (around $2.07 billion)—an impressive 123 percent increase in value and an 88 percent rise in transaction volume compared to July 2024.
The primary market also demonstrated resiliency, recording 1,961 transactions amounting to AED 12.2 billion ($3.32 billion), underscoring strong demand for newly completed properties. Overall, the primary market accounted for AED 31.9 billion ($8.7 billion) in sales, marking a 32 percent year-on-year increase. Noteworthy transactions occurred in Wadi Al Safa 3 and Dubai Investment Park, which made up 16 percent and 9 percent of total primary values, respectively.
The secondary market posted similarly impressive figures, contributing AED 31.7 billion ($8.6 billion) through 8,221 transactions. This marked a 22 percent rise in value and an 18 percent increase in transaction volume year-on-year. Key factors driving this growth included a significant AED 1.1 billion ($299.5 million) sale of industrial land in Al Wasl, alongside a notable increase in activity across Ras Al Khor, Jumeirah Second, and Marsa Dubai.
Investor Confidence Boosted by Policy Changes
The recent July 2025 update to UAE’s tax regulations has garnered strong approval from investors and analysts alike. By enabling depreciation deductions based on current market values instead of historical costs, the move is seen as a progressive step that further enhances investor confidence in the Dubai property market.
Cherif Sleiman, Chief Revenue Officer at Property Finder, remarked on the significance of these changes: “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.”
He added, “The new Ministerial Decision allowing depreciation deductions on investment properties held at fair value is a forward-thinking move aligning the UAE’s tax framework with international best practices.” Sleiman emphasized how this change is vital for fostering long-term investor confidence and offers substantial tax savings potential, incentivizing growth among developers and corporate investors.
Market Trends and Buyer Preferences
Recent trends indicate a growing demand for smaller residential units, particularly one-bedroom apartments and studios, as renters seek ownership options to mitigate rising rental costs. The preference for apartments remains dominant, capturing 62 percent of buyer interest and nearly 80 percent of rental searches.
Specifically, studio apartments are garnering 22 percent of rental searches and 16 percent of purchase interest, while one-bedroom units account for 36 percent of purchase searches and 40 percent of rental inquiries. This shift underscores the trend toward ownership, as potential buyers increasingly turn to smaller units in response to escalating rents.
Notably, the share of buyers opting for apartments over villas has increased by 3 percent year-on-year, a change attributed largely to affordability concerns amidst rising housing prices. As the Dubai property market continues to evolve and adapt, these trends reflect a dynamic real estate landscape poised for further growth.