Dubai's real estate market continues to exceed expectations, with the residential sector achieving unprecedented sales volumes in 2025 and the office market maintaining near-full occupancy amid soaring demand.

This record-breaking performance is driven by sustained population growth, robust investor confidence, and Dubai's evolving status as a permanent home for global citizens rather than a transient destination.

By the end of October, real estate sales had reached a historic Dh559.4 billion, already surpassing the previous full-year record of Dh522.1 billion set in 2024.

Another report, tracking the first 290 days of the year, noted sales of Dh525.87 billion, further confirming the market's explosive growth. Transaction volume remains robust, with one October report noting 178,244 deals year-to-date, while another cited 168,540 transactions in the first 290 days.

This boom is characterised by a strong preference for off-plan properties, which accounted for 70 per cent of total residential sales in the third quarter.

Apartments continue to dominate transaction volume, but a clear divergence in price growth is evident. In Q3 2025, average selling prices increased in 31 out of 34 villa and townhouse communities tracked by one report, with limited supply driving an average price rise of 22 per cent. In contrast, apartments saw a more moderate average increase of 12 per cent. The most active price segment year-on-year was the Dh5–10 million range, which saw a 60 per cent increase in transactions.

Underpinning this market resilience is a fundamental shift in buyer mentality.“Buyers view Dubai as a permanent base rather than a short-term destination,” a trend that is shaping purchasing patterns and sustaining demand for family homes. This is supported by strong demographic tailwinds, with Dubai's population exceeding 3.8 million as of 2024 and continuing to grow.

The office market mirrors this strength, demonstrating exceptional vitality with record-high occupancy rates. Grade A office assets are leading with a 95 per cent occupancy rate, contributing to a robust citywide average of 92 per cent.

This scarcity of available high-quality space has driven average office rents to Dh190 per square foot, a significant 22 per cent increase year-on-year.

Prime districts such as DIFC, One Central, and Downtown Dubai continue to command the highest rental levels.

A wave of new supply is poised to enter the office market from 2026 onward, with projections of 2.3 million square feet delivered in 2026 and over 4.1 million square feet in 2027. Much of this upcoming Grade A space, concentrated in areas like DIFC and Expo City, is already seeing strong pre-leasing momentum, signalling healthy absorption by corporate occupiers.

Industry leaders attribute this sustained boom to visionary government policies and world-class infrastructure. Sales have multiplied sevenfold since 2020, putting Dubai on a path to achieve the goals of its Dubai Real Estate Strategy 2033, which targets Dh1 trillion in annual transactions. Investor-friendly regulations, including long-term residency options like the Golden Visa, have been crucial in strengthening international investment inflows.

With two months remaining in the year, 2025 is poised to become the most active year ever for Dubai real estate, analysts said.

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