Dubai’s average residential real estate prices reached a historic high of AED1,664 per sq ft, nearly double 2020 levels
Dubai’s residential real estate market continued to demonstrate its strength and resilience in the third quarter of 2025, recording 56,015 transactions worth AED138.3 billion ($37.66 billion). Despite a 6.4 percent dip in value quarter-on-quarter, total sales volume surged 11.4 percent, underscoring sustained demand and investor confidence across key segments.
According to the latest report by Betterhomes, apartment sales soared to AED93 billion ($25.32 billion) this quarter, marking the highest value ever recorded in Dubai’s residential market. Volumes climbed 22 percent to 48,646 units, driven largely by off-plan apartment sales,which jumped 35 percent quarter-on-quarter.
Off-plan transactions accounted for 70 percent of total sales volume and 59 percent of value, the strongest contributions on record. This trend highlights robust investor confidence and an active wave of new project launches across the city.
Villas and townhouses recalibrate
Following an exceptional first half, villa and townhouse transactions across Dubai’s real estate market eased 30 percent quarter-on-quarter, and values declined 34 percent quarter-on-quarter. The report attributed the decline to a natural post-rally adjustment as launches paused and buyers became more selective. Demand for larger family homes remains healthy in established and lifestyle-led communities.
“Dubai’s property market is experiencing selective ascent rather than straight-line growth. Sales volume and value rose 18 percent year-on-year, reaching 56,015 transactions worth AED139.7 billion, anchored by off-plan sales. Demand is tilting decisively toward new supply, particularly apartments, where deals jumped 28 percent year-on-year. By contrast, villas cooled and prime transactions eased 48 percent QoQ, suggesting a moment of pause rather than panic,” said Louis Harding, CEO at Betterhomes.
Residential prices reach a historic high
Dubai’s average residential real estate prices reached a historic high of AED1,664 per sq ft, nearly double 2020 levels. This 5.2 percent quarterly rise was fueled by end-user demand, liquidity in mid-market communities and favorable global conditions, including the U.S. Federal Reserve’s 25-basis-point rate cut that boosted affordability for international investors.
Supply also strengthened, with over 28,500 units delivered so far in 2025 and more than 200,000 units expected by 2027. Apartments made up 85 percent of Q3 handovers, led by Jumeirah Village Circle, Business Bay and Town Square.
As Dubai moves into the final quarter of 2025, the real estate market is expected to maintain its steady trajectory. The combination of sustained population growth, infrastructure expansion and global investor interest continues to reinforce Dubai’s position as one of the world’s most dynamic and resilient property markets.
Source: economymiddleeast