Dubai’s off-plan residential market recorded its strongest performance on record in 2025, accounting for the majority of the city’s real estate activity, according to Betterhomes’ Dubai Residential Real Estate report for FY 2025.
Off-plan transactions represented 65% of all residential deals and 53% of total market value, marking the third consecutive year that off-plan properties led Dubai’s residential market. The trend reflects sustained investor confidence and active participation in launch-driven communities.
Off-plan demand
Investor-focused products continued to dominate off-plan activity. Studios, one- and two-bedroom apartments led both launches and sales, supporting strong rental demand, faster resale, and accessible entry points for buyers. Around 72% of all market transactions were in the Dhs 500,000 to Dhs 3 million price range, highlighting the depth of demand for investable properties rather than short-term speculative purchases.
Apartments lead
Apartments remained the backbone of the off-plan market. In 2025, off-plan apartment sales reached Dhs 248 billion in value across 122,000 transactions, reinforcing the segment’s status as Dubai’s most liquid residential asset class. Popular areas included Jumeirah Village Circle, Business Bay, and Dubai South, where new supply continued to be absorbed quickly.
Wassim Abdallah, Director & Head of Development Sales & Consultancy at Betterhomes, said: “With 132,000 off-plan transactions in 2025, nearly two-thirds of all residential deals, buyers are showing greater discipline, focusing on pricing, location, and long-term demand rather than short-term gains. Liquidity is flowing into projects that make sense on fundamentals, signalling a more mature market.”
Market drivers
Dubai’s growing population, which surpassed four million in 2025, supported housing demand. Economic growth remained steady, inflation was contained, and easing global interest rates, along with the UAE dirham’s peg to the US dollar, made Dubai attractive to both regional and international investors seeking stable, long-term returns.
Outlook 2026
Off-plan is expected to continue leading the market as the delivery pipeline expands in 2026 and 2027. Nearly 98,000 residential units are forecast to be completed in 2026. Analysts expect buyers to focus increasingly on project quality, pricing, and data-driven decisions as supply rises, reinforcing the role of professional guidance in navigating Dubai’s evolving residential market.
tanvir@dubainewsweek.com
