Dubai Real Estate: Apartment Sales Soar to Record $25.32 Billion in Q3 2025 as Prices Nearly Double from 2020

Dubai’s residential real estate market continues to set new benchmarks in 2025, underscoring its position as one of the most resilient and dynamic property markets globally the third quarter of 2025 alone, the city recorded 56,015 transactions worth AED138.3 billion ($37.66 billion) - a testament to Dubai’s enduring investment appeal.

Despite a modest 6.4% quarter-on-quarter dip in total value, sales volumes surged 11.4%, signaling sustained confidence from both local and international investors.

Apartments Drive Record-Breaking Growth

Apartment sales led the charge this quarter, soaring to AED93 billion ($25.32 billion) - the highest quarterly value ever recorded in Dubai’s residential history. Volumes climbed 22% to reach 48,646 units, driven primarily by a sharp rise in off-plan sales, which jumped 35% compared to the previous quarter.

Off-plan transactions accounted for 70% of total sales volume and 59% of total value, marking the strongest contribution on record. This reflects Dubai’s rapidly evolving skyline and a renewed investor appetite for new developments offering high yield potential, flexible payment plans, and long-term capital growth.

Villas and Townhouses Recalibrate

After an exceptional first half of the year, villa and townhouse sales eased by 30% quarter-on-quarter, with values declining 34%. This moderation reflects a natural post-rally adjustment as developers recalibrate launches and buyers turn more selective.

Still, demand for larger family homes remains healthy, particularly in established lifestyle communities that offer privacy, amenities, and long-term value stability.

Residential Prices Reach Historic Highs

Dubai’s average residential prices climbed to AED1,664 per sq ft in Q3 2025 - nearly double 2020 levels. This 5.2% quarterly rise was driven by end-user demand, strong liquidity in mid-market communities, and favorable global conditions such as the recent U.S. Federal Reserve rate cut, which enhanced affordability for international investors.

Supply also expanded, with over 28,500 new units delivered so far in 2025 and more than 200,000 units expected by 2027. Apartments made up 85% of Q3 handovers, led by fast-growing areas like Jumeirah Village Circle, Business Bay, and Town Square.

Outlook: Steady Growth Ahead

As Dubai enters the final quarter of 2025, the market shows every sign of maintaining its steady upward trajectory. A combination of population growth, infrastructure expansion, and robust investor inflows continues to strengthen Dubai’s position as a global hub for real estate investment.

At Tavian Properties, we see this momentum as part of Dubai’s broader transformation into a long-term wealth destination. With record-breaking off-plan performance and a resilient secondary market, the city’s real estate sector remains one of the most compelling investment stories in the world.