(MENAFN- Khaleej Times)

Dubai's real estate market continued its record-breaking trajectory in Q3 2025, posting its highest-ever quarterly transaction volume with 59,228 property sales worth Dh170.7 billion (\$46.5 billion), according to Dubai Land Department data. This marks a 17.2 per cent increase in volume and 19.9 per cent rise in value compared to the same period last year, underscoring the emirate's enduring appeal to both domestic and international investors.

Apartments led the charge, accounting for 49,370 units sold at Dh94.3 billion, a 25.9 per cent year-on-year increase. Off-plan sales dominated the market, representing over 70 per cent of all transactions, driven by flexible payment plans and investor confidence in Dubai's development pipeline. Meanwhile, villa transactions cooled, declining 30 per cent quarter-on-quarter, reflecting a natural recalibration after a strong rally in early 202).

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The average residential price reached a historic Dh1,664 per sq ft, nearly double 2020 levels, with villa prices averaging Dh7 million, up 24 per cent from 2024. Despite the cooling in villa sales, demand remains strong in lifestyle-focused communities.

A notable trend is the suburban shift, as rising rents in central areas push residents toward emerging zones, which are evolving into fully serviced lifestyle hubs, offering affordability and modern amenities.

Sustainability is also reshaping buyer preferences. Developers are increasingly integrating green building practices, smart home systems, and wellness-focused amenities, aligning with Dubai's broader urban planning goals and ESG-conscious investor demand.

Dubai's population surpassed 4 million in September 2025, and with nearly 9,800 millionaires expected to migrate to the UAE this year, demand for quality housing is projected to remain robust. Analysts expect continued segmentation in the market, with mid-market apartments gaining traction and prime villa communities maintaining long-term value.

In line with this trend, ATARA Development, a Dubai-based property developer, has unveiled its latest project Kaia Villa, an Dh60 million, six-bedroom villa on Pearl Jumeirah Island and the first launch under the Terra Collection.

Kaia Villa marks the latest milestone in Atara's growing portfolio, with 10 additional residences currently under construction across Dubai's most sought-after communities. The completion of the residence underscores ATARA's steady expansion in Dubai's luxury residential segment, following the developer's recent partnership with Marriott International to introduce the GCC's first Sheraton-branded residences on Al Marjan Island.

The fully-furnished six-bedroom villa features expansive ensuite bathrooms and walk-in closets, complemented by a study, private cinema, spa, gym, yoga area, a rooftop terrace with a BBQ zone, and a ground-floor pool with deck.

“The completion of Kaia villa marks another important step in our journey as a growing developer in the Emirates real estate market.,” said Umid Bazarov, Chief Operating Officer of ATARA Development.“Kaia Villa represents our vision to create homes that offer more than architecture, residences that reflect individuality, innovation, and a refined approach to modern living.”

Meanwhile, Ras Al Khaimah's property market surged 118 per cent year-on-year, reaching Dh15 billion in total transactions for 2025. The ValuStrat Price Index rose 13.8 per cent, with villas appreciating 15 per cent and apartments 13.2 per cent annually. Hotspots like Mina Al Arab and Al Marjan Island saw villa prices jump 20 per cent, while apartments rose 14.5 per cent.

RAK's off-plan segment dominated, accounting for 85 per cent of freehold sales, with over 3,000 units sold worth Dh6 billion. The emirate's rental yields are also outperforming, with apartments offering 5.7 per cent and villas 2.3 per cent, making it one of the UAE's most attractive markets for income-focused investors.

Driving RAK's growth are mega-projects like the Wynn Al Marjan Island Resort, set to open in 2027, and a pipeline of 19,300 new units by 2030. Branded residences from Ritz-Carlton and Aston Martin are reshaping the luxury landscape, expected to comprise 25 per cent of new supply.

In line with this trend, Mantra Properties announced that its latest ultra-luxury development, Jacob & Co Residences, in collaboration with the watch and jewelry brand Jacob & Co, has registered over Dh300 million in sales within just 12 hours of its launch. The remarkable response marks a historic moment for Al Marjan Island, setting a new benchmark as the fastest-selling project on the island to date.

The Dh400 million branded development witnessed an overwhelming demand from investors and high-net-worth individuals, underscoring the UAE's continued dominance as a hub for branded luxury living. Over 80% of investors' interest came from expatriate residents and international buyers, highlighting the region's global appeal for high-end real estate investments.

Arch. Abdulla Al Abdouli, Group CEO of Marjan, said:“This project will not only elevate the island's appeal but also redefine what modern luxury living means in this region and we wish all stakeholders continued success in Al Marjan Island and beyond.”

Ankit Gupta, Managing Director of Mantra Properties, added,“The unprecedented response we've received reinforces the demand for curated luxury experiences that combine artistry, architecture, and aspiration. We're proud to deliver a project that redefines luxury living in Ras Al Khaimah.”

Jacob & Co Residences will comprise 223 limited-edition residences featuring a curated selection of studio, one-bedroom, and two-bedroom apartments, with prices starting from Dh1.01 million. The project is slated for handover in Q4 2027.

While Dubai remains the UAE's flagship market, RAK is carving out a niche as a lifestyle and investment destination, blending affordability with high returns. Analysts expect continued segmentation, with Dubai attracting global capital and RAK appealing to regional investors seeking value and long-term growth.

As the UAE pushes toward its 2030 vision, both emirates are poised to benefit from infrastructure expansion, tourism growth, and investor-friendly reforms - reinforcing the country's position as a global real estate powerhouse.

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