Dubai real estate market ends 2025 on a high note, setting new records in December.

Dubai real estate market ends 2025 on a high note, setting new records in December.

Dubai’s real estate market has set remarkable records in 2025, showcasing its status as one of the world’s most robust property sectors. This impressive surge in transactions highlights the emirate’s ongoing appeal to investors from across the globe.

Historic Transaction Growth

The year closed with an astounding total of 215,700 property sales, reaching a staggering value of Dh686.8 billion. This marks a significant increase of 18.7% in transaction volume and an impressive 30.9% rise in sales value compared to the previous year. Analysts attribute this remarkable performance to rising investor confidence, a growing international demand for Dubai’s assets, and a construction pipeline that is increasingly meeting market needs. December alone saw a year-on-year monthly increase of 46.4% in sales value, totaling Dh63.1 billion, emphasizing the emirate’s consistent allure for both local and international buyers.

According to Firas Al Msaddi, CEO of fäm Properties, the figures reflect a significant evolution in Dubai’s real estate landscape, indicating that these are not just fluctuations but a new, dynamic phase for the market. The emerging trends suggest a more diverse investor base with substantial interest from Asia, Europe, and the Americas, alongside a supply pipeline that aligns with actual demand.

Comprehensive Market Expansion

The successes of 2025 extended across all segments of the market. The primary sector was particularly robust, with 149,230 first-sale transactions amounting to Dh448.1 billion, an increase of 33.6% from the previous year. The secondary market also thrived, achieving 66,400 resale agreements valued at Dh238.8 billion, reflecting a 26.2% annual growth.

Significantly, property prices experienced notable increases, with primary market prices rising by 6.7% to reach Dh1,700 per square foot and secondary market prices climbing 11.2% to Dh1,500 per square foot. The total new supply was equally impressive, with developers completing 42,784 residential units, a 45% increase from 2024. This ensures a healthy market pipeline heading into 2026.

Diverse Property Types and Investment Hotspots

Apartments constituted the majority of transactions, with 170,448 sales valued at Dh332.9 billion, reflecting nearly a 20% rise. Villa sales also saw a boost, climbing 11.1% to 34,671 units, totalling Dh206.9 billion. Furthermore, the commercial real estate sector displayed remarkable strength, experiencing a 41.1% surge in transactions that amounted to Dh18.2 billion.

Notably, Jumeirah Village Circle (JVC) led the market with 18,755 transactions worth Dh24.5 billion, primarily driven by mid-market demand. Other high-performing areas included Business Bay and Wadi Al Safa 5, demonstrating the diverse investment opportunities available.

Future Outlook for Dubai’s Real Estate

Since 2020, the transformation in Dubai’s property market has been nothing short of extraordinary. Sales values skyrocketed from Dh71.5 billion in 2020 to Dh686.8 billion in 2025, showcasing a nearly tenfold increase. Analysts predict continued momentum into 2026 fueled by strong global investor interest, disciplined developments, and Dubai’s ongoing establishment as a secure and growth-focused international hub.

As the market enters a new year, the indicators suggest that the real estate sector will maintain its upward trajectory, attracting more investors and solidifying Dubai’s position as a premier destination for property investment.