Dubai’s property market closed 2025 on a strong note, with December contributing to the highest quarterly sales performance on record, according to new data released by Property Finder.
The final quarter of the year saw transaction values reach Dhs187.47 billion, driven by sustained demand, rising prices per square foot and active participation across key residential areas. The results capped a record year for both sales value and volume, with price growth outpacing transaction growth.
Record Q4 sales
Property Finder data shows December 2025 recorded property sales worth Dhs64 billion, matching November’s total and building on October’s Dhs59 billion. Together, the three months delivered the strongest quarterly performance ever recorded in Dubai’s real estate market.
The company said the momentum reflects a steady increase in prices rather than speculative activity. Median prices rose by 8.4 per cent in 2025 compared to the previous year, supported by higher price per square foot across multiple segments.
Prime areas lead
High-end locations continued to account for a large share of transaction value in December. Palm Jumeirah, Dubai Marina and Downtown Dubai remained among the top contributors, supported by limited supply, premium pricing and continued interest from international buyers.
Other established areas also maintained solid activity. Business Bay continued to attract investors due to its mixed-use appeal and central location, while Dubai Hills Estate saw balanced demand across both apartments and villas.
Mid-market communities such as Jumeirah Village Circle remained active, particularly among buyers seeking more affordable options in the off-plan segment.
Apartment-led demand
Apartments dominated both rental and sales searches in December, according to Property Finder. In the rental market, apartments accounted for 80 per cent of searches, compared to 20 per cent for villas and townhouses.
Search data also showed a year-on-year increase in demand for studios and one-bedroom units, suggesting that higher rents in 2025 pushed tenants towards smaller and more affordable homes.
A similar pattern was seen in sales activity. Apartments made up 61 per cent of buyer searches, with 85 per cent of those focused on studio, one-bedroom and two-bedroom units.
Market outlook
Commenting on the data, Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “It has been a great December for Dubai’s property market in 2025, confirming that the city’s real estate performance is structural and demand-led. Q4 signified a strong end to a very successful 2025 with strong transaction values, rising prices per square foot, and broad-based participation across communities. Now, we can look forward to an exciting 2026 with market momentum anchored in depth, diversity, and pricing resilience, rather than short-term speculative activity. It’s great news for buyers, sellers and investors alike as there’s something for everyone looking to find a home in Dubai.”
tanvir@dubainewsweek.com
