Dubai’s property market continued its remarkable run through 2025, shrugging off the traditionally slow summer months to post one of its strongest quarters on record.

Residential sales rose 22.7 per cent year-on-year, while commercial transaction values surged 31 per cent in the third quarter, according to Engel & Völkers Middle East.

The results underline Dubai’s growing reputation as one of the world’s most resilient and mature real estate markets — driven by robust investor confidence, a steady influx of new residents, and deep-rooted end-user demand.

“Dubai’s property market has reached a new level of maturity,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “We’re seeing not just speculative investment but a long-term commitment from people who view Dubai as home — a place to build their lives, careers, and legacies.”

The city’s population, now exceeding four million, continues to provide a solid demand base across residential and commercial sectors. In the housing market, off-plan properties dominated activity, accounting for nearly 70 per cent of all transactions. Apartments led the charge, representing 87 per cent of total sales, with 47,705 units sold for Dh91.4 billion — a 26.4 per cent jump from a year earlier. The luxury segment remained buoyant, recording 1,388 deals above Dh10 million, the second-strongest quarter on record. Among standout transactions were a Dh350 million off-plan villa at Jumeirah Asora Bay and a Dh173.6 million apartment at Aman Residences in Jumeirah.

Demand has been broad-based, with new off-plan communities such as Dubai Science Park, Damac Riverside, and DLRC attracting strong investor interest for their long-term potential. At the same time, established neighbourhoods like Dubai Marina, Downtown Dubai, and Jumeirah Beach Residence continued to see brisk secondary-market activity. Rising rents and an increasing sense of permanence among expatriate residents are also driving a gradual shift from renting to ownership, particularly among families and professionals seeking long-term security in the UAE.

The commercial sector showed equal dynamism, recording 3,418 transactions worth Dh30.4 billion — a 31 per cent year-on-year rise. All asset classes posted double-digit growth: offices climbed 45 per cent, retail 37 per cent, land 36.8 per cent, and buildings 50 per cent. Business Bay led with Dh3.4 billion worth of deals, followed by Ras Al Khor, which registered Dh2.9 billion in large-scale land sales.

The office segment has emerged as a standout performer, buoyed by surging demand for modern, sustainable, and strategically located workspaces. A total of 1,151 offices were sold in the quarter for Dh3.1 billion — nearly double the value recorded a year earlier. Off-plan office sales soared from just 69 in Q3 2024 to 389 this year, signalling investor confidence in Dubai’s next phase of business and economic expansion. “The surge in off-plan office demand shows how investors are adapting to Dubai’s evolving business landscape,” said Hadi.

Underlying these trends is a strong economic backdrop. The International Monetary Fund projects the UAE’s GDP to expand by 4.8 per cent in 2025 and 5 per cent in 2026, supported by diversification initiatives, fiscal discipline, and sustained foreign investment. Inflation remains subdued, while anticipated interest rate cuts are expected to add further momentum to the property market heading into 2026.

Market observers note that Dubai’s resilience has moved it beyond cyclical ups and downs. The emirate’s continued ability to attract global capital, high-net-worth individuals, and multinational corporations — alongside its fast-growing population and infrastructure pipeline — reinforces its status as a premier global city.

Engel & Völkers expects both residential and commercial segments to maintain their upward trajectory in the final quarter of 2025.

“Dubai has demonstrated that sustainable growth is now embedded in its DNA,” Hadi said. “It’s no longer just a city for investment — it’s a city of belonging, ambition, and enduring value.”

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Source: Khaleej Times 

15 October, 2025