The Dubai real estate market generated AED681bn ($185.5bn) in sales in 2025, cementing one of the most transformative years in the sector’s history.
Record transaction volumes, accelerating population growth and disciplined supply delivery combined to push the market into a new phase of expansion — one increasingly defined by permanent residents rather than short-term investors.
According to Provident Estate’s 2025 Market Overview, Dubai recorded 213,700 residential transactions last year, representing a 6.9 per cent year-on-year increase. Average sale prices rose 7.6 per cent, underscoring a structural upward trend shaped by lifestyle-driven relocations and long-term settlement, rather than speculative turnover.
Loai Al Fakir, CEO of Provident Estate, said: “Dubai’s real estate story is no longer just about opportunity — it’s about permanence. People are not only investing here; they are building their futures here. That shift has redefined demand, reshaped community priorities, and positioned Dubai as the most resilient real estate market globally.”
Dubai real estate 2025
Dubai crossed a historic population milestone in 2025, surpassing 4.03m residents. More than 208,000 new arrivals chose the city for work, lifestyle and long-term settlement during the year, while more than 1.35m people have relocated to the emirate since 2014.
This sustained inflow has created a durable demand base that continues to reshape housing needs across the market.
Buyer demographics point clearly to end-user dominance. The 31–45 age group accounted for the majority of transactions, with the 36–40 segment holding the strongest share — signalling purchasing decisions driven by career maturity, family planning and long-term stability.
Apartments remained the backbone of Dubai’s transaction activity, with areas including Jumeirah Village Circle, Business Bay and Dubai Marina absorbing a significant share of demand.
One-bedroom units led performance in both the secondary and off-plan markets, reflecting the requirements of incoming residents and young professionals establishing themselves in the city.
Villas, meanwhile, continued to reinforce long-term commitment to the market. Four-bedroom layouts dominated both completed and off-plan villa transactions, with communities such as Wadi Al Safa, Al Hebiah Fifth and Dubai South attracting family buyers focused on long-term community living.
Dubai real estate supply
Developers maintained measured delivery schedules, with 96,500 residential units expected to hand over in 2026. Supply is concentrated across established and emerging master-planned communities, including:
- Dubai Creek Harbour
- Dubai Hills Estate
- Damac Lagoons
- Arabian Ranches 3
- Arjan
- Business Bay
The forward pipeline remains controlled, with 84,979 units projected for 2027 and 45,480 units for 2028, reinforcing alignment between genuine occupancy demand and market delivery.
Al Fakir said: “2025 confirmed that Dubai is no longer in a price cycle — it is in a population cycle. Demand is anchored in resident growth, resale continues to reflect lived-in preference, and off-plan remains powered by strategic communities rather than speculation.
“With population momentum showing no signs of slowing, fundamentals position 2026 as another year of structural market expansion”.
