Dubai’s property market continues its record-breaking run, with residential transactions surging nearly fourfold in the first half of 2025 compared to the same period in 2021. According to the latest market data, a total of 99,146 property deals were completed in H1 2025, up from just 26,891 in H1 2021 — a remarkable 369% increase.
Consistent Growth Across Quarters
The market has shown steady year-on-year expansion since 2021, with second-quarter volumes consistently outpacing first-quarter results. In Q2 2025 alone, Dubai recorded 53,525 transactions, compared to 45,621 in Q1.
Global and Local Drivers
Dubai’s real estate boom is supported by broader global economic shifts. As Western economies grapple with slower growth, higher interest rates, and geopolitical uncertainty, investors are moving away from low-yield assets and rotating into real estate — an asset class offering inflation-linked returns.
The UAE’s strong fiscal discipline has also reinforced investor confidence, with a debt-to-GDP ratio of just 14%, in sharp contrast to rising deficits in major economies like the US.
Community Leaders and Premium Areas
On the community level, Jumeirah Village Circle (JVC) led the market in Q2 2025 with 4,870 sales, followed by Business Bay (2,776), Damac Island City (2,680), and Dubailand Residence Complex (1,781).
Ultra-luxury districts, however, continue to command the highest prices per square foot. Jumeirah Bay Island leads at AED 13,068 per sq. ft., with Jumeirah Second (AED 7,623) and Umm Al Sheif (AED 7,504) following closely. Other prime areas include Palm Jumeirah, Bluewaters Island, Emirates Hills, and DIFC.
Off-Plan Dominance
Dubai’s office sector has also witnessed sharp growth. Average prices jumped 160% from AED 768 per sq. ft. in 2021 to nearly AED 2,000 in 2025. Occupancy rates rose from 74.2% in 2021 to 91% in 2025, with free zone districts such as DIFC, DWTC, and Dubai Internet City reporting levels above 95%.
Looking Ahead: Supply and Risks
While a supply surge is expected in 2026–2027, with more than 250,000 new units projected, analysts caution against overstating the risk of a price correction. Strong population growth, phased handovers, and robust macroeconomic fundamentals are expected to balance out new supply.
