Dubai’s residential property market recorded over 56,000 transactions worth Dhs 138.3 billion in the third quarter of 2025, showing continued strength despite a slight decline in overall value compared to the previous quarter, according to Betterhomes .
Surge in off-plan sales
Apartments drove the market, with sales reaching Dhs 93 billion — the highest quarterly value ever recorded for this segment. A total of 48,646 apartment units were sold, up 22% from Q2. Off-plan apartment sales jumped 35% quarter-on-quarter, accounting for 70% of all transactions and 59% of the total sales value — the strongest performance on record for this category.
Villas show correction
Villa and townhouse sales declined 30% in volume and 34% in value compared to the previous quarter, following a strong start to the year. The shift reflects a natural cooling period, with fewer new launches and more selective buyer behaviour. However, demand for larger homes remains steady in well-established communities.
Price growth continues
Average residential prices in Dubai rose to Dhs 1,664 per square foot in Q3, up 5.2% from the previous quarter and nearly double 2020 levels. This increase was driven by mid-market demand, favourable financing conditions, and international interest, supported in part by a US rate cut that improved affordability for foreign investors.
More than 28,500 new units have been delivered in 2025 so far, with total supply expected to surpass 200,000 units by 2027. Apartments made up 85% of the Q3 completions, with Jumeirah Village Circle, Business Bay, and Town Square among the most active areas.
Betterhomes reported a 24% year-on-year rise in transactions and a 38% increase in sales leads. Townhouses led demand, up 91% year-on-year, followed by villas at 12% and apartments at 5%. The firm noted that 63% of buyers were investors, highlighting Dubai’s rising profile as a global real estate investment hub.
On the rental side, Betterhomes saw leasing activity rise 92% year-on-year and 29% quarter-on-quarter. The average annual rent stood at Dhs 196,000, with apartments dominating the leasing segment.
Looking ahead, steady performance is expected to continue into the final quarter of 2025. “Dubai’s property market is experiencing selective ascent rather than straight-line growth,” said Louis Harding, CEO at Betterhomes.
“Sales volume and value rose 18% year-on-year, anchored by off-plan sales. Demand is tilting decisively toward new supply, particularly apartments, where deals jumped 28% year-on-year.”
tanvir@dubainewsweek.com
