Dubai’s real estate sector experienced an extraordinary conclusion in December 2025, solidifying its position as a premier global investment destination. The year saw record-breaking annual sales of 215,700 transactions, aggregating a staggering AED 686.8 billion. This significant uptick underscores Dubai’s emergence as a key player in the international real estate arena, creating an appealing landscape for both local and international investors.

A Pivotal Year in Dubai Real Estate

According to a comprehensive market analysis by fäm Properties, 2025 has been a watershed year for Dubai’s property sector. The data reveals widespread growth across various segments, including residential, commercial, and land markets. This growth is attributed to increasing values, strong demand for off-plan properties, and a consistent supply from developers responding to market conditions.

Statistics from DXBInteract paint a clear picture of this expansion, indicating an 18.7% rise in total transaction volumes compared to 2024, alongside a remarkable 30.9% growth in sales value year-on-year. Both the primary and secondary markets have shown considerable improvement, highlighting a healthy balance of activity across new developments and resale properties.

“This is not just another phase of growth but rather a genuine evolution of Dubai’s real estate market,” noted Firas Al Msaddi, CEO of fäm Properties. He emphasized the significance of a diverse investor base coming from Asia, Europe, and the Americas, coupled with a carefully managed supply that aligns well with current demand.

Dominance of the Primary Market

In 2025, the primary market firmly established itself as the lead segment in Dubai’s real estate landscape. First-time sales reached 149,230 transactions valued at AED 448.1 billion—marking a 33.6% increase from the previous year. The secondary market also enjoyed a robust performance, with 66,400 resale transactions accounting for AED 238.8 billion, reflecting a 26.2% year-on-year growth.

The numbers reveal that first sales from developers constituted 69% of total transaction volume and 65% of transaction value, indicating persistent confidence in off-plan and newly launched properties. Average prices surged in response to this demand, with primary market prices rising to AED 1,700 per square foot (an increase of 6.7%), while secondary market prices escalated by 11.2% to AED 1,500 per square foot.

Supply Meets Demand Effectively

One of the standout features of 2025 was the market’s adeptness at absorbing new supply. Developers introduced 42,784 residential units throughout the year, reflecting a substantial 45% increase from 2024’s 29,392 units. Concurrently, new project launches rose by 6.1%, totaling 177,624 units, showcasing a confident but measured response to market demand.

“The uptick in property deliveries shows that developers are attuned to market dynamics. The strong performances of both new launches and resale properties indicate that investors feel secure entering and exiting the market,” Al Msaddi remarked. Over the past five years, the landscape has drastically transformed, as annual sales values soared from AED 71.5 billion in 2020 to AED 686.8 billion in 2025, with transaction volumes increasing more than sixfold.

Broad Growth Across Property Categories

All key property segments recorded impressive growth in 2025. Apartment transactions surged by 19.9%, resulting in 170,448 sales worth AED 332.9 billion. Villa sales also thrived, increasing by 11.1% to 34,671 units valued at around AED 206.9 billion. The commercial sector showed significant resilience, with transactions jumping 41.1% to reach 6,086 units valued at AED 18.2 billion, while plot sales reached AED 128.5 billion from 4,446 transactions. Additionally, building sales witnessed a dramatic increase exceeding 300%, signaling a renewed interest in redevelopment projects.

As Dubai heads into 2026, the data reflects a market that thrives on sustainable demand and diversity rather than mere speculation. With continued global capital inflows and disciplined developer practices, the emirate’s real estate sector appears poised to maintain its upward trajectory, potentially setting new benchmarks soon.