Dubai Real Estate Market Report 2025
Full Year 2025 Annual Residential Market Analysis
January 1 - December 31, 2025
Executive Summary
Dubai's residential market recorded 199,946 transactions in 2025, totaling AED 538.1 billion - an 18.9% increase in volume and 26.9% growth in total value year-over-year. The average transaction price reached AED 2.69 million, up 6.7% from 2024, with median prices at AED 1.53 million. Off-plan sales dominated the market at 69.6% of total transactions, reflecting sustained investor confidence in Dubai's development pipeline and favorable payment plans.
Key Performance Indicators - 2025
Dubai's residential market delivered record-breaking performance with nearly 200,000 transactions generating over half a trillion AED in total value. Average prices increased 6.7% year-over-year while transaction volume surged 18.9%.
Supply & Demand
Transaction volume surged 18.9% year-over-year from 168,103 to 199,946 deals, driven primarily by off-plan activity which captured nearly 70% of market share. The sustained developer launch pipeline, particularly from DAMAC, Binghatti, and Sobha, maintained strong inventory flow throughout the year. Emerging communities like Dubai South, DAMAC Islands, and Dubai Maritime City absorbed significant demand, reflecting buyer appetite for newer developments with attractive entry pricing.
Monthly Transaction Volume - 2025
The line traces monthly transaction activity throughout 2025, starting at 13,010 transactions in January and peaking at 18,760 in July. The pattern shows consistent activity above 15,000 transactions from April onwards, with Q3 recording the highest quarterly volume.
Monthly Transaction Volume - 2025
View Data Table
| Month | Transactions | Total Value | Avg Price |
|---|---|---|---|
| January | 13,010 | AED 35.3B | AED 2.71M |
| February | 14,988 | AED 41.3B | AED 2.75M |
| March | 14,205 | AED 37.4B | AED 2.64M |
| April | 16,445 | AED 48.4B | AED 2.94M |
| May | 17,522 | AED 54.7B | AED 3.12M |
| June | 15,471 | AED 43.7B | AED 2.83M |
| July | 18,760 | AED 50.8B | AED 2.71M |
| August | 17,600 | AED 41.7B | AED 2.37M |
| September | 18,639 | AED 44.4B | AED 2.38M |
| October | 18,286 | AED 46.4B | AED 2.54M |
| November | 17,791 | AED 47.7B | AED 2.68M |
| December | 17,229 | AED 46.3B | AED 2.69M |
Source: Property Monitor
Transactions by Price Segment - 2025
The AED 1-2 million segment proved the market's sweet spot, capturing 34.8% of transactions (69,605 deals). The under AED 1 million segment captured 26.2%, while the AED 2-5 million range represented 29.9%. Luxury transactions above AED 10 million comprised just 3.3% of volume but contributed significantly to total value.
| Price Segment | Transactions | Market Share | Avg Price |
|---|---|---|---|
| Under AED 1M | 52,301 | 26.2% | AED 706K |
| AED 1-2M | 69,605 | 34.8% | AED 1.39M |
| AED 2-5M | 59,685 | 29.9% | AED 3.02M |
| AED 5-10M | 11,704 | 5.9% | AED 6.79M |
| AED 10-20M | 4,162 | 2.1% | AED 14.04M |
| AED 20M+ | 2,489 | 1.2% | AED 34.70M |
Source: Property Monitor
Price Drivers
Average transaction prices increased 6.7% year-over-year to AED 2.69 million, with total market value growing at an even faster 26.9% pace. The AED 1-2 million segment proved the market's sweet spot, capturing over one-third of all transactions. Premium pricing in established communities - Dubai Hills Estate averaging AED 3.85 million and Dubai Creek Harbour at AED 2.73 million - reflects the maturity premium that landlocked, master-planned communities command.
Metropolitan Insight
Dubai's 2025 market demonstrates a bifurcated opportunity structure: emerging communities like JVC, Dubai South, and DAMAC developments offer volume plays with accessible entry pricing under AED 1.5 million, while established areas command 50-100% price premiums but deliver proven rental yields and exit liquidity. The 69.6% off-plan dominance suggests end-users and investors continue prioritizing developer payment plans over immediate occupancy, a trend likely to persist as handovers from 2022-2023 launches deliver positive equity gains.
Top 10 Areas by Transaction Volume - 2025
Jumeirah Village Circle leads the ranking with 17,931 transactions representing 8.97% market share. Business Bay follows with 11,871 transactions (5.94%), and Dubai South claims third position with 9,819 deals (4.91%). DAMAC communities feature prominently with Islands and Riverside both appearing in the top 10.
View Data Table
| Rank | Area | Transactions | Market Share |
|---|---|---|---|
| 1 | Jumeirah Village Circle | 17,931 | 8.97% |
| 2 | Business Bay | 11,871 | 5.94% |
| 3 | Dubai South | 9,819 | 4.91% |
| 4 | Dubai Residence Complex | 7,802 | 3.90% |
| 5 | Motor City | 5,828 | 2.91% |
| 6 | Dubai Science Park | 5,391 | 2.70% |
| 7 | Dubai Production City | 5,273 | 2.64% |
| 8 | Jumeirah Village Triangle | 5,135 | 2.57% |
| 9 | DAMAC Islands | 4,845 | 2.42% |
| 10 | DAMAC Riverside | 4,559 | 2.28% |
Source: Property Monitor
Top 10 Developers by Transaction Volume - 2025
Emaar maintains market leadership with 25,038 transactions (12.52% share) and the highest average price at AED 4.57 million. DAMAC Properties follows with 21,336 deals (10.67%), while Binghatti secures third position with 18,348 transactions (9.18%) at a more accessible AED 1.46 million average.
View Data Table
| Rank | Developer | Transactions | Market Share | Avg Price |
|---|---|---|---|---|
| 1 | Emaar | 25,038 | 12.52% | AED 4.57M |
| 2 | DAMAC Properties | 21,336 | 10.67% | AED 2.30M |
| 3 | Binghatti | 18,348 | 9.18% | AED 1.46M |
| 4 | Sobha Group | 11,016 | 5.51% | AED 2.40M |
| 5 | Nakheel | 5,967 | 2.98% | AED 6.34M |
| 6 | Danube Properties | 5,264 | 2.63% | AED 1.51M |
| 7 | Azizi | 5,099 | 2.55% | AED 885K |
| 8 | Samana Developers | 4,603 | 2.30% | AED 1.04M |
| 9 | Meraas | 3,919 | 1.96% | AED 8.37M |
| 10 | Dubai Properties | 3,787 | 1.89% | AED 2.96M |
Source: Property Monitor
Record Transactions - 2025
The highest-value residential transactions recorded in Dubai during 2025, led by the AED 550 million Bugatti Residences penthouse in Business Bay - a landmark sale that underscores Dubai's position as a global ultra-luxury destination.
| Rank | Date | Area | Project | Type | Price |
|---|---|---|---|---|---|
| 1 | Dec 2025 | Business Bay | Bugatti Residences by Binghatti | Unit (6BR) | AED 550M |
| 2 | Jan 2025 | Emirates Hills | Sector E | Villa | AED 425M |
| 3 | Aug 2025 | La Mer | Jumeirah Asora Bay Ocean Mansions | Villa (7BR) | AED 350M |
| 4 | Mar 2025 | Jumeirah Bay Island | - | Villa | AED 330M |
| 5 | May 2025 | Palm Jumeirah | The Crescent | Villa (6BR) | AED 300M |
| 6 | Aug 2025 | Emirates Hills | Sector E | Villa | AED 260M |
| 7 | Jul 2025 | Jumeirah | Jumeirah 2 | Villa (5BR) | AED 250M |
| 8 | Dec 2025 | Emirates Hills | Sector V | Villa | AED 233.5M |
| 9 | Nov 2025 | Al Sufouh | Al Sufouh 1 | Villa | AED 230M |
| 10 | Apr 2025 | Jumeirah Bay Island | - | Villa | AED 225M |
Source: Property Monitor
Investment Context
The record AED 550 million Bugatti Residences penthouse and multiple AED 200M+ villa transactions underscore Dubai's position as a global luxury real estate destination. The concentration of ultra-luxury sales in Palm Jumeirah (273 transactions above AED 20M), Palm Jebel Ali (517), and The Oasis (307) signals sustained HNWI demand. Nakheel and Emaar collectively captured over 50% of the AED 20M+ segment, positioning established developers as the preferred choice for trophy assets.
Luxury Market Leaders (AED 20M+) - By Area
Palm Jebel Ali leads the ultra-luxury segment with 517 transactions above AED 20 million. Palm Jumeirah commands the highest average price at AED 43.9 million among top areas, while La Mer achieves AED 52.3 million average - reflecting the premium for beachfront lifestyle assets.
| Rank | Area | Transactions (20M+) | Avg Price |
|---|---|---|---|
| 1 | Palm Jebel Ali | 517 | AED 23.9M |
| 2 | The Oasis | 307 | AED 24.0M |
| 3 | Palm Jumeirah | 273 | AED 43.9M |
| 4 | Dubai Hills Estate | 116 | AED 34.2M |
| 5 | Mohammed Bin Rashid City | 116 | AED 30.8M |
| 6 | Jumeirah | 116 | AED 48.3M |
| 7 | Downtown Dubai | 107 | AED 29.4M |
| 8 | La Mer | 93 | AED 52.3M |
| 9 | Jumeirah Islands | 69 | AED 26.7M |
| 10 | Business Bay | 66 | AED 41.2M |
Source: Property Monitor
Investor Considerations
Metropolitan Premium Properties advises prospective buyers and current owners to consider:
Entry Timing
With prices up 6.7% YoY and volume up 18.9%, the market shows sustained momentum rather than peak exhaustion. Entry in emerging communities offers better capital appreciation potential, while established areas provide immediate rental income.
Configuration Selection
Units dominate transaction volume at 82.8%, offering greater liquidity on exit. Villas at 17.2% of market trade at 3.3x higher average prices - suitable for end-users or ultra-high-net-worth investors seeking lifestyle assets.
Rental Strategy
Focus on the AED 1-2 million sweet spot which balances entry cost with rental demand. Furnished units in prime locations command 15-25% rental premiums. Short-term rental regulations favor established communities with existing tourism infrastructure.
Holding Period
Off-plan purchases require 3-5 year horizons aligned with construction timelines. Ready properties in mature communities suit 2-3 year holds with immediate rental income. Trophy assets above AED 20 million are typically long-term holds (5-10 years).
Exit Flexibility
JVC's 17,931 transactions demonstrate exceptional liquidity. Mid-market units (AED 1-3 million) in top 10 areas by volume offer fastest exit timelines. Ultra-luxury (AED 20M+) requires patient selling strategies with limited buyer pools.
Popular Searches in the UAE
Our newsletter
Sign up for our weekly newsletter for market updates!