Demand fundamentals strengthened further as Dubai’s population rose 5.4 per cent year-on-year to 4 million, supported by 17.5 million overnight visitors between January and November. These inflows continued to translate directly into housing absorption, particularly in established, well-connected communities.

Dubai recorded its strongest residential year on record, with total sales value reaching  Dh547 billion, up 28 per cent year-on-year, across 203,000 transactions, a 20 per cent increase in volume.

Liquidity remained concentrated in investable stock. Studios and one- to two-bedroom apartments accounted for 77 per cent of transactions, while 72 per cent of deals fell within the  Dh500,000– Dh3 million range, reinforcing market depth and resale velocity. “This was not a narrow or speculative cycle,” Harding added. “Liquidity was broad, repeatable and focused on segments where both end-users and investors continue to transact with confidence.”

Off-plan market activity dominated the year, accounting for 65 per cent of total transactions and 53 per cent of total value, driven primarily by apartments. Apartment sales reached  Dh325 billion (+29 per cent YoY), while villas and townhouses contributed  Dh221 billion (+26 per cent YoY). Despite a rapidly expanding supply pipeline, average sale prices rose 12 per cent year-on-year to  Dh1,673 per sq ft, demonstrating the market’s capacity to absorb new supply without price erosion.

Transaction activity broadens across sales and leasing as mortgages hit 52 per cent

Leasing activity accelerated sharply in 2025, with  leasing transactions rising over 60 per cent year-on-year, supported by strong family-led demand. Despite higher volumes, rents held firm at an average of  Dh207,000 per year.

“Leasing momentum in 2025 came from people moving forward, not prices running ahead,” Stable rents alongside higher transaction volumes reflect a market driven by families and long-term tenants making deliberate housing decisions.

Buyer demand also strengthened, with buyer demand up 33 per cent year-on-year, while mortgages accounted for 52 per cent of transactions, overtaking cash. Investors remained the majority at 57 per cent of purchases for a fourth consecutive year. India and the UK continued to lead buyer nationalities, while Dubai’s luxury segment deepened further, with average prime selling prices rising 26 per cent year-on-year to  Dh30 million.

2026 Outlook

Dubai’s 2025 performance points to a residential market supported by structural fundamentals rather than excess. With economic growth accelerating, population expanding, and pricing holding firm amid rising supply, the sector enters 2026 from a position of broad demand, strong liquidity, and structural resilience.

“Looking ahead, an increased delivery pipeline through 2026 and 2027, alongside moderating price growth, will place greater emphasis on data-led, informed decision-making, and on the importance of clients engaging with the most experienced brokerages in the market to advise on their property needs,” Harding said.