December 2025 marked a remarkable conclusion to an exceedingly fruitful fourth quarter for Dubai’s real estate sector, showcasing AED 64 billion in sales. This achievement not only capped off a successful month but also signified a record year for the Dubai property market. The surge in sales reflects the ongoing strength of popular neighborhoods, which are appealing to both luxury homebuyers and those interested in affordable living spaces.

Q4 Performance: A Record High

The profitability of December contributed significantly to closing a record-breaking year for the Dubai property market in 2025. According to Property Finder, a leading real estate portal in the MENA region, the statistics reveal a promising trajectory for the industry. The yearly figures demonstrated that property value growth was greater than the increase in transaction volume, allowing the real estate market to confidently welcome 2026. A noteworthy factor was the rise in the price per square foot, with median prices seeing an increase of 8.4% compared to the previous year.

The fourth quarter culminated in phenomenal sales, reaching a total of AED 187.47 billion. December’s impressive figure of AED 64 billion followed November’s equal performance and October’s AED 59 billion, collectively producing the highest quarterly sales ever recorded. This consistent momentum indicates a robust end-of-year performance for the market.

Popular Neighborhoods Drive Demand

Certain residential areas played a pivotal role in supporting this flourishing market. Iconic locales such as Palm Jumeirah, Dubai Marina, and Downtown Dubai were instrumental in driving transaction value thanks to high demand, limited availability, and premium pricing. Additionally, well-planned developments across Dubai continue to create an appealing environment for a diverse range of buyers. Business Bay remains a favored choice for investors, offering a variety of amenities within its mixed-use landscape, while Dubai Hills Estate attracts balanced interest for both villas and apartments within a master-planned community.

In more affordable segments, neighborhoods like Jumeirah Village Circle are gaining traction. These mid-market communities are increasingly sought after by buyers looking for budget-friendly options in the competitive off-plan landscape.

Trends in the Rental and Sales Markets

The rental market mirrors the strong demand for apartments. According to data from Property Finder, approximately 80% of rental searches pertain to apartments, in stark contrast to 20% for villas and townhouses. The increasing share of studio and one-bedroom units indicates a rising trend. Higher rental prices in 2025 have led many potential renters to seek out smaller, more affordable living spaces.

Similarly, sales searches reflect the growing interest in apartment living, with 61% of searches focused on these units, while only 39% are dedicated to villas. Among those searching for apartments, a striking 85% are focusing on studio, one-bedroom, and two-bedroom options. This trend highlights a broader inclination towards compact, budget-friendly residences as home-seekers adjust to economic realities.

Outlook for 2026 and Beyond

Cherif Sleiman, Chief Revenue Officer at Property Finder, noted that December 2025 was an exceptional month for Dubai’s real estate sector, highlighting that the performance is both structural and demand-driven. The fourth quarter concluded a highly successful year with solid transaction values and rising prices per square foot, showcasing broad participation across various communities. Looking ahead, the market appears poised for an exciting 2026, driven by depth, diversity, and pricing resilience. This news is advantageous for buyers, sellers, and investors alike, as there continues to be something for everyone in Dubai’s vibrant real estate landscape.