Dubai's Emerging Real Estate Hotspots Signal Next Phase Of Market Growth

(MENAFN- Mid-East Info) Dubai, UAE, January, 2026: Dubai's residential real estate market continued its strong upward trajectory in 2025, with emerging communities driving a new phase of growth as buyers and investors look beyond established locations, according to Metropolitan Premium Properties (MPP), one of the UAE's leading real estate brokerages.

Data from Property Monitor shows Dubai recorded 200,780 residential transactions worth AED 541.5 billion, an 18.9% year-on-year increase, underscoring sustained confidence in the emirate's property sector. While established areas such as Jumeirah Village Circle and Business Bay continued to lead in transaction volumes, a number of fast-rising districts posted exceptional growth, signalling a broadening of demand across the city.

Two of the strongest performing emerging areas, Palm Jebel Ali, Dubai's next landmark waterfront destination and one of the city's most ambitious coastal expansions, recorded a 244% increase in transaction volumes, while Dubai Islands, a large-scale district redefining Dubai's northern coastline, recorded 156% growth.

Other strong emerging areas included The Oasis (+132%), Nad Al Sheba (+80%), La Mer (+74%), Dubai Water Canal (69%), Dubai Maritime City (54%), and Dubai South (30%)

According to MPP, the exceptional growth recorded across these emerging areas is being driven predominantly by off-plan investment activity, as buyers increasingly look to position themselves early in areas still undergoing development supported by long-term master planning.

“Investor demand is increasingly concentrating on large-scale, future-facing developments where infrastructure, lifestyle appeal, and long-term supply dynamics support sustained growth,” said Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties.“While waterfront locations have consistently attracted strong interest, we are now seeing heightened activity in new, large-scale coastal districts as buyers position themselves early in Dubai's next phase of urban expansion.”

MPP notes that while ready and secondary market transactions continue to appeal primarily to end-users and buyers seeking immediate occupancy or stable rental income, emerging districts are attracting investors focused on long-term capital growth rather than short-term yield.

For the top areas by transaction volume Jumeirah Village Circle led all areas with 17,933 transactions at an average price of AED 1,102,967, with 69% off-plan share. This established community continues to attract mid-market buyers seeking value-oriented options within master-planned developments. Business Bay secured second position with 11,874 transactions averaging AED 2,341,979 (73% off-plan), maintaining its status as a premium urban hub. Dubai South followed with 9,820 transactions at AED 2,084,040 average (84% off-plan), reflecting accelerated development around the Al Maktoum International Airport corridor.

Other high-volume transaction areas included Dubai Residence Complex (7,802), Motor City (5,828), Dubai Science Park (5,391), Dubai Production City (5,273), Jumeirah Village Triangle (5,137) and DAMAC Islands (4,845). Collectively, the top five areas accounted for 26.1% of total transactions, indicating healthy geographic diversification.

According to MPP, the dominance of off-plan transactions continues to play a key role in shaping emerging growth corridors. As developers accelerate launches in locations aligned with Dubai's long-term urban expansion plans, these areas are expected to mature rapidly into established residential hubs.

Marcus Andersson, Head of Sales – Off-plan, Metropolitan Premium Properties said:“Off-plan remains the driving force of Dubai's residential real estate market, accounting for over 75% of total transactions in 2025 and this momentum is set to accelerate further. As major developers roll out large-scale projects in 2026 – particularly in high-growth corridors such as Dubai South, Dubai Islands and new master-planned phases by Emaar and DAMAC – we anticipate off-plan unit sales to rise by a further 10–15% in 2026.”

Looking ahead, Vasilieva added:“Dubai's secondary market is set for steady, sustainable growth through 2026. Areas such as Dubai South, Dubai Hills Estate and Dubai Creek Harbour are increasingly attracting end-users and long-term investors, driven by airport-led development, improved connectivity and a growing focus on family-oriented communities. These emerging districts will be central to the next chapter of Dubai's real estate story.”

With transaction activity spreading across a wider range of communities, MPP believes Dubai's market is entering a more balanced phase, one defined not only by scale and volume, but by depth, diversification and long-term resilience.

About Metropolitan Premium Properties:

Metropolitan Premium Properties (MPP) is the Metropolitan Group's flagship property company based in Dubai. It is a full-service real estate agency offering customised solutions to developers, owners and investors who are looking to maximise value from their luxury real estate assets. MPP offers a complete real estate solution under one roof and has the UAE's largest premium property portfolio.

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