Dubai's property market continues to defy global real estate headwinds, with the villa and townhouse segment emerging as the star performer in the third quarter of 2025. Despite a slight quarterly dip in total sales value, Dubai's real estate sector has maintained remarkable strength - underpinned by soaring villa prices, record high-end transactions, and a surge in rental demand as the city attracts a growing number of global residents and investors.

According to data from the Dubai Land Department (DLD), property sales in Q3 reached Dh135.6 billion. While that represented a modest nine per cent decline from the previous quarter, the figure still marked a robust 16 per cent increase from a year earlier - highlighting Dubai's continued resilience as one of the world's most sought-after real estate markets.

Over the first nine months of 2025, total transaction value hit Dh498.8 billion, underscoring the enduring investor confidence that continues to define Dubai's property landscape. One of the most striking trends has been the steep climb in villa and townhouse prices. Real estate brokerage Allsopp & Allsopp reported that the average transaction price in this category surged to Dh8.7 million - a 21 per cent jump from last year. This acceleration reflects unprecedented demand from ultra-high-net-worth individuals who continue to pour capital into Dubai's most prestigious communities such as Palm Jumeirah, Emirates Hills, Jumeirah Golf Estates, and Jumeirah Islands.

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A string of high-profile deals further illustrates the growing appetite for luxury homes. Allsopp & Allsopp reported sales of a Palm Jumeirah Frond M villa for Dh40 million, a Wildflower villa in Jumeirah Golf Estates for Dh35.5 million, and a Jumeirah Islands villa for Dh35 million. These marquee transactions highlight the steady influx of global millionaires and billionaires who see Dubai as a secure, lifestyle-rich investment destination amid global economic volatility.

Industry observers attribute this sustained momentum to a combination of factors - including Dubai's investor-friendly tax regime, safe-haven appeal, world-class infrastructure, and the UAE's long-term residency and golden visa programmes. The city's appeal as a global financial and lifestyle hub has also been magnified by geopolitical stability, year-round sunshine, and expanding luxury offerings that cater to high-net-worth expatriates and entrepreneurs.

The broader secondary market mirrored the luxury segment's upward trajectory, with the average property price across Dubai climbing to Dh5.1 million - up by 28 per cent year-on-year. Meanwhile, DLD data indicated a 28 per cent increase in villa and townhouse transaction volumes from the previous quarter, reflecting the growing number of families and long-term residents choosing to call Dubai home.

The off-plan segment, which typically drives future supply, showed early signs of tightening. Around 6,176 units were completed during the quarter, down 12 per cent from a year earlier, while 28,573 new units were launched - a 30 per cent annual decline. Analysts warn that this slowdown, coupled with strong population growth, could widen the supply-demand gap. With close to 600 new residents arriving daily, the imbalance could continue to push prices higher, especially in the villa category, where premium inventory remains limited.

Meera Sivaprasad, executive director at Condor Developers, said the latest data paints a clear picture of a city that has transformed its real estate ecosystem into one of the most dynamic in the world.“As supply lags behind demand and luxury properties dominate the market narrative, Dubai appears firmly set to extend its status as a magnet for global wealth and high-end investment in the years ahead.” Property market consultant V S Bijukumar said a confluence of of rising villa prices, strong end-user demand, and an expanding expatriate base has positioned Dubai's real estate sector for continued growth. Investors remain confident that the emirate's property market - supported by sound fundamentals, forward-looking urban policies, and a globally trusted regulatory framework - will deliver sustained returns.

According to fäm Properties, Dubai recorded 59,228 property deals in Q3 worth Dh170.7 billion, representing annual gains of 17.2 per cent in transaction volume and 19.9 per cent in value. Over the first nine months of the year, a total of 158,200 deals worth Dh498.8 billion were registered - up 32.3 per cent in value and 20.5 per cent in volume compared with the same period in 2024, data from DXBinteract confirmed. Dubai's rental market has also maintained its upward trajectory. Transaction volumes rose by 15 per cent in Q3 compared to the previous quarter, while new rental contracts surged by 31 per cent. Allsopp & Allsopp noted a 40 per cent quarterly increase in rental transactions, driven by the influx of expatriates relocating for new job opportunities or seeking long-term stability. The steady rise in rental demand has further strengthened landlords' yields and reaffirmed Dubai's status as a lucrative buy-to-let market.

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