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Dubai Real Estate Market Report – December 2025

2026-01-05

1. Market Overview (Year-End 2025)

Record-Breaking Performance

  • Dubai’s real estate market closed 2025 at an all-time high, with total transaction value reaching approximately AED 682.5 billion, representing a year-on-year growth of around 30.6%.

  • The market recorded over 214,900 sales transactions, and more than 275,000 total real estate transactions across all categories during the year.

  • Strong domestic and international investor confidence remained a key driver throughout 2025.

Key Takeaway:
Dubai continues to position itself as one of the world’s most resilient and attractive real estate investment destinations, supported by a stable political environment and favorable tax policies.


2. December 2025 Monthly Snapshot

Transaction Activity

  • December 2025 total sales value: approximately AED 46.4 billion

  • Number of transactions: around 17,300 deals

  • Year-on-year growth for the month remained close to 30%, confirming sustained momentum into year-end.

Most Active Areas

AreaMarket Highlights
MajanStrong apartment sales, studios and 1-bedroom units dominant
Jumeirah Village Circle (JVC)High transaction volume, balanced investor and end-user demand
Dubai SouthSteady growth driven by affordability and future infrastructure
Business BayContinued demand for premium apartments
Grand Polo Club & ResortRising interest from high-net-worth buyers

Unit Type Trends

  • Larger homes (6–7 bedroom villas) recorded notable growth, reflecting demand from affluent families and long-term residents.


3. Market Structure & Pricing Trends

Off-Plan vs Ready Properties

  • Off-plan properties accounted for over 70% of total transactions, remaining the dominant segment of the market.

  • This reflects strong confidence in future supply, developer credibility, and attractive payment plans.

Price Performance

  • Apartment prices: up approximately 12% year-on-year

  • Villa prices: up approximately 22% year-on-year, driven by limited supply and strong demand in the luxury segment


4. Buyer Profile & Demand Drivers

Buyer Demographics

  • The 31–45 age group represented the largest share of buyers, spanning investors, end-users, and lifestyle buyers.

Key Demand Drivers

  • Population growth: Dubai’s population surpassed 4 million in 2025, supporting both sales and rental demand.

  • Investor-friendly policies: Zero personal income tax, zero capital gains tax, and long-term residency options such as the Golden Visa.

  • Global capital inflows: Continued interest from Europe, Asia, CIS countries, and the Middle East.

  • Luxury market strength: High-end and branded residences outperformed the broader market in growth rate.


5. Outlook for 2026

Opportunities

  • Continued long-term demand supported by population growth, tourism, and infrastructure expansion.

  • Strong pipeline of premium and master-planned developments attracting global investors.

  • Dubai’s positioning as a global safe-haven market remains intact.

Potential Risks

  • Supply pressure from a high volume of project completions over the next 12–24 months.

  • Possible price stabilization or mild correction in select segments, particularly where supply concentrates.

  • Market performance will likely become more location- and quality-driven, favoring prime assets.


6. Key Conclusions

  • 2025 marked a historic year for Dubai real estate, with record transaction values and volumes.

  • December 2025 maintained strong momentum, confirming sustained investor confidence.

  • Off-plan sales dominated, while villas and luxury properties led price growth.

  • Policy advantages, population growth, and global investor demand remain the core pillars of the market.

  • 2026 outlook is positive but selective, with greater emphasis on fundamentals, location, and developer quality.