Dubai’s residential real estate market maintained strong growth in 2025, with emerging communities driving increased activity as buyers and investors look beyond traditional areas, according to Metropolitan Premium Properties (MPP).
Data from Property Monitor shows the emirate recorded 200,780 residential transactions worth Dhs 541.5 billion, an 18.9% rise compared with 2024. While established areas such as Jumeirah Village Circle and Business Bay remain popular, several new districts posted significant growth.
Emerging communities lead
Palm Jebel Ali, a waterfront development, recorded a 244% increase in transaction volumes, while Dubai Islands saw 156% growth. Other high-performing emerging areas included The Oasis (+132%), Nad Al Sheba (+80%), La Mer (+74%), Dubai Water Canal (+69%), Dubai Maritime City (+54%), and Dubai South (+30%).
“The exceptional growth recorded across these emerging areas is being driven predominantly by off-plan investment activity, as buyers increasingly look to position themselves early in areas still undergoing development supported by long-term master planning,” said Svetlana Vasilieva, Head of Secondary Sales at MPP.
Vasilieva added: “Investor demand is increasingly concentrating on large-scale, future-facing developments where infrastructure, lifestyle appeal, and long-term supply dynamics support sustained growth. While waterfront locations have consistently attracted strong interest, we are now seeing heightened activity in new, large-scale coastal districts as buyers position themselves early in Dubai’s next phase of urban expansion.”
Market by transaction
Among top areas by transaction volume, Jumeirah Village Circle led with 17,933 transactions at an average price of Dhs 1,102,967, with 69% off-plan share. Business Bay followed with 11,874 transactions averaging Dhs 2,341,979 (73% off-plan), while Dubai South recorded 9,820 transactions at Dhs 2,084,040 average (84% off-plan).
Other areas with notable volumes included Dubai Residence Complex (7,802), Motor City (5,828), Dubai Science Park (5,391), Dubai Production City (5,273), Jumeirah Village Triangle (5,137), and DAMAC Islands (4,845). The top five areas accounted for 26.1% of total transactions, indicating a diversification of demand across the city.
Off-plan growth
MPP highlighted that off-plan transactions remain a key driver, representing more than 75% of total sales in 2025. Marcus Andersson, Head of Sales – Off-plan at MPP, said: “Off-plan remains the driving force of Dubai’s residential real estate market, accounting for over 75% of total transactions in 2025 and this momentum is set to accelerate further. As major developers roll out large-scale projects in 2026 – particularly in high-growth corridors such as Dubai South, Dubai Islands and new master-planned phases by Emaar and DAMAC – we anticipate off-plan unit sales to rise by a further 10–15% in 2026.”
Vasilieva also noted that Dubai’s secondary market is expected to continue steady growth in 2026. “Areas such as Dubai South, Dubai Hills Estate and Dubai Creek Harbour are increasingly attracting end-users and long-term investors, driven by airport-led development, improved connectivity and a growing focus on family-oriented communities. These emerging districts will be central to the next chapter of Dubai’s real estate story.”
With transaction activity spreading across more communities, MPP said the market is entering a more balanced phase, marked by diversification and long-term resilience.
tanvir@dubainewsweek.com
