Dubai Real Estate Market Report 2025 by Provident

January 05, 2026

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Dubai Market Trends & News

Dubai Real Estate Market Report 2025 by Provident - Provident Estate

Dubai’s real estate market delivered another record-breaking year in 2025, reflecting sustained demand, strong investor confidence, and Dubai’s evolving position as a global property hub. With a balanced mix of secondary and off-plan transactions, the market continued to attract both end-users and international investors seeking long-term returns and lifestyle-driven opportunities. Below is a concise breakdown of the key insights from Provident’s latest annual market report.

For a detailed data-led view, download Provident’s Property Market Report 2025 PDF.

Dubai Real Estate Trends 2025 – Key Highlights

Dubai real estate trends 2025 underline the market’s continued momentum, supported by population growth, strong off-plan absorption, and consistent activity in established communities.

  • Total Transactions: 213,700, reflecting sustained market liquidity and broad participation from both end-users and investors across all residential segments.
  • Total Sales Value: AED 681 billion, highlighting strong capital inflows and continued confidence in Dubai as a global real estate investment destination.
  • Average Sale Price: AED 3.2 million, indicating a healthy balance between high-volume mid-market transactions and demand for premium properties.
  • Average Price per Sq. Ft.: AED 1,600, demonstrating steady price appreciation supported by rising construction quality and location-driven demand.
  • Transaction Growth (2024–2025): +6.9% YoY, confirming continued expansion in deal activity despite a higher base year.
  • Price Growth (2024–2025): +7.6% YoY, reflecting stable value growth driven by genuine demand rather than speculative pressure.

These indicators confirm the resilience of the Dubai housing market 2025, supported by genuine end-user and investor demand.

YearTransactionsSales ValueAvg. Sale PriceAvg. Price / Sq. Ft.
2023133,100AED 411.1BAED 3.1MAED 1,400
2024181,700AED 524.6BAED 2.89MAED 1,500
2025213,700AED 681BAED 3.2MAED 1,600

Secondary Market Performance

The secondary market remained resilient in 2025, with demand spread across apartments, villas, and family-oriented communities.

Resale Apartments

The resale apartment segment recorded strong activity in 2025, reflecting continued demand for ready-to-move-in homes across established communities. The average sale price stood at AED 1.2M, recording a 4.3% year-on-year increase, while the average price per square foot reached AED 1,520, indicating steady value appreciation in line with broader market growth.

  • Total Sold: 43,960 units, demonstrating strong liquidity in the secondary apartment market and consistent buyer preference for completed homes within established communities.
  • Most Popular Unit: One-bedroom apartments, favored by young professionals and investors seeking stable rental yields
  • Jumeirah Village Circle (11%) – Continued to lead due to its affordability, rental demand, and expanding community infrastructure
  • Dubai Marina (9%) – Remained attractive for waterfront living and lifestyle-driven demand
  • Business Bay (8%) – Benefited from its central location and mixed-use urban environment
  • Downtown Dubai (6%) – Drew premium buyers seeking luxury residences near iconic landmarks
  • Al Merkadh (5%) – Maintained consistent activity supported by accessibility and competitive pricing

Resale Villas

The average sale price reached AED 3.7M, reflecting a 12.1% year-on-year increase. In contrast, the average price per square foot stood at AED 1,480, indicating stronger value growth compared to apartments and highlighting continued interest in family-oriented housing.

  • Total Transactions: 11,314, underscoring consistent liquidity in the secondary villa market despite higher ticket sizes
  • Most Popular Unit: 4-bedroom villas, favored by families seeking larger layouts and long-term lifestyle stability
  • Wadi Al Safa (11%) – Led activity due to competitive pricing and availability of spacious villa communities
  • Al Hebiah Fifth (10%) – Attracted buyers looking for emerging residential clusters with future growth potential
  • Al Yelayiss 1 (8%) – Benefited from increasing connectivity and growing end-user interest
  • Dubai South (6%) – Continued to draw demand from buyers aligned with long-term infrastructure development
  • Al Yufrah 1 (5%) – Maintained steady transactions driven by family-oriented layouts and affordability

Off-Plan Market Performance

Off-plan sales accounted for the largest share of activity in the Dubai property market in 2025, driven by demand for new launches, structured payment plans, and long-term capital growth.

Off-Plan Apartments

The off-plan apartment segment remained the most active component of the market in 2025, driven by investor demand for new launches, phased payment plans, and long-term capital growth opportunities across high-absorption communities.

The average sale price stood at AED 1.96M, reflecting continued demand for mid-market and investment-focused units, particularly compact layouts that align with rental yield strategies.

  • Total Registrations: 108,921, highlighting strong investor participation and sustained confidence in Dubai’s off-plan residential pipeline
  • Most Popular Units: 1-bedroom apartments, favored for their affordability, liquidity, and rental appeal
  • Jumeirah Village Circle (10%) – Continued to lead activity due to competitive pricing, high launch volumes, and consistent end-user demand
  • Business Bay (7%) – Benefited from its central location and strong appeal among investors targeting mixed-use urban living
  • Wadi Al Safa 5 (6%) – Gained traction as an emerging residential cluster offering value-driven off-plan opportunities
  • Dubai South (6%) – Attracted buyers aligned with long-term infrastructure and economic development plans
  • Mina Rashid (4%) – Drew interest for its waterfront positioning and lifestyle-focused master planning

Off-Plan Villas

The off-plan villa segment recorded solid momentum in 2025, supported by demand from families and long-term investors seeking larger homes within master-planned communities.

With an average sale price of AED 5.79M, the segment reflected continued confidence in premium suburban developments offering modern layouts and lifestyle-led community planning.

  • Total Registrations: 20,703, underscoring sustained demand for off-plan villas despite higher price points
  • Most Popular Units: 4-bedroom villas, aligning with family-oriented living and long-term ownership preferences
  • Al Yufrah 1 (20%) – Emerged as the leading location due to scale, pricing competitiveness, and availability of family-sized villas
  • Wadi Al Safa 5 (15%) – Continued to attract buyers seeking value-driven villa communities with future growth potential
  • Dubai South (13%) – Benefited from infrastructure-led development and long-term residential planning
  • Dubai Investment Park (12%) – Drew interest from buyers prioritizing accessibility and integrated community environments
  • Wadi Al Safa 7 (11%) – Maintained steady demand supported by expanding residential offerings

Supply Forecast

Dubai’s residential pipeline remains aligned with population growth, supporting market stability.

YearExpected HandoversKey Areas
202696,500Arjan, Business Bay, City Walk, Dubai Creek Harbour, Damac Lagoons, Dubai Hills
202784,979Damac Lagoons, Damac Hills 2, Nad Al Sheba, The Valley
202845,480Dubai Harbour, Maritime City, Al Sufouh, Dubai Hills Estate

Key supply areas in 2025 included JVC, Business Bay, Wadi Al Safa 5, Dubai South, and Dubai Marina.

Key Takeaways

  • The Dubai real estate market in 2025 recorded strong, broad-based growth
  • Apartments led transaction volumes; villas drove higher-value demand
  • Population growth continues to underpin housing demand
  • Supply remains measured and aligned with absorption
  • Overall outlook remains stable and investor-friendly

FAQs

Apartments dominated in volume, while villas recorded higher average prices and strong demand from end-users.
 

Off-plan properties often offer lower entry prices and flexible payment plans, while ready properties provide immediate rental income. The choice depends on an investor’s cash flow needs and investment horizon.
 

Communities such as Jumeirah Village Circle, Business Bay, and Dubai South continued to attract investors seeking consistent rental yields.
 

Yes, foreign nationals can purchase freehold properties in designated areas across Dubai with full ownership rights.
 

For more information, get in touch with us at Provident