Dubai's real estate market has shattered all previous records in 2025, closing the year with an unprecedented AED 686.8 billion in total property sales across 215,700 transactions. This remarkable performance represents a 30.9% increase in value and 18.7% growth in transaction volume compared to 2024, cementing Dubai's position as one of the world's most dynamic property markets.

Historic 5-Year Market Trajectory

The market's explosive growth trajectory from AED 71.5 billion in 2020 to AED 686.8 billion in 2025 represents an astounding 860% increase over five years. This sustained momentum has been driven by a combination of factors including favorable visa policies, population growth, and Dubai's emergence as a global hub for business and lifestyle.

Top Performing Areas in 2025

Business Bay emerged as the undisputed leader in 2025, recording AED 39.9 billion in sales across 13,844 transactions. The area saw a remarkable 377% surge in off-plan sales, driven by premium waterfront developments and its strategic location in the heart of Dubai.

Dubai South continues to be the emerging star with a 26.37% price appreciation and an impressive 8.29% rental ROI, making it the highest-yielding area in Dubai. Its proximity to Al Maktoum International Airport and Expo City has attracted significant investor interest.

Global Buyer Demographics

Dubai's property market attracted investors from over 150 countries in 2025. Indian nationals led the charge with 22% of foreign purchases, followed by British buyers at 17% and Chinese investors at 14%. The diversity of the investor base reflects Dubai's global appeal and provides market stability.

Notably, 60-65% of transactions were investor-led, with off-plan properties dominating due to attractive payment plans. End-users comprised 35-40% of buyers, primarily focusing on ready properties in established communities.

Property Type Breakdown

Apartments dominated the market with 79% of all transactions, totaling 170,448 units worth AED 332.9 billion. The commercial segment showed the strongest growth at 41.1% year-over-year, indicating increased business confidence in Dubai's economic future.

2026 Market Outlook

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