In 2025, Dubai’s real estate market experienced its most prosperous year yet, with record-breaking transaction volumes and values driven by an influx of new investors. Government statistics reveal that nearly 130,000 investors entered the market, signaling significant confidence in the local real estate sector.

Record-Breaking Transaction Volumes and Values

According to the Dubai Land Department, the total number of real estate transactions in the emirate exceeded 270,000, marking a remarkable 20% increase compared to 2024. The overall value of these transactions reached an impressive AED 917 billion (approximately USD 250 billion), reflecting a similar year-on-year growth rate of 20%. These numbers are attributed to “clear regulations, disciplined market practices, and a long-term investment approach,” underscoring the stability and attractiveness of Dubai’s real estate sector.

This surge positions the 2025 market as the best year to date, indicating a transition into a more mature phase. Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, noted that the market is now adept at converting investor confidence into stable and sustainable value. The rise in both the volume and value of transactions emphasizes the increasing appeal of property investment in the city.

Growth Factors Driving Investment

Several government initiatives have contributed to this boom, including residency permits aimed at retirees and remote workers, as well as the expansion of the 10-year golden visa program. Additionally, the broader diversification efforts within the UAE’s economy have bolstered the real estate market. The emirate is working towards the Dubai Real Estate Sector Strategy 2033, which aims to increase transaction volumes by 70%, targeting AED 1 trillion.

Strong population growth in both Dubai and nearby Abu Dhabi, combined with a substantial influx of high-net-worth individuals seeking refuge in the UAE, has heightened demand for property, consequently driving up prices and rental rates. In 2025, the total volume of real estate-related transactions, including sales, leases, and various services, rose by 7% annually to around 3.11 million, indicating a robust demand landscape.

Top Investment Areas and Trends

Al Barsha South Fourth led the list of top real estate transaction areas, followed by notable neighborhoods such as Business Bay, Dubai Marina, and Jebel Ali First. In terms of transaction value, Business Bay stood out as the market leader, highlighting its desirability among investors.

Not only did the number of transactions increase, but the value of real estate investments also saw significant rises. In 2025, a total of approximately AED 680 billion in investment deals were recorded by 193,100 investors, marking a 29% uptick in value and a 20% increase in volume over the previous year. Notably, 129,600 of these investors were newcomers to the market, demonstrating a growing interest in Dubai’s property sector.

The Role of Women and Luxury Investments

Women have also made significant strides in the market, investing AED 154 billion through 76,700 transactions, which reflects a 31% increase in value and a 24% rise in volume. This shift points to a more inclusive investment landscape in Dubai.

Luxury property investments are taking off as well, with transactions surpassing AED 3.98 billion—up 5% over the previous year. The allure of ownership has made renting less appealing, as evidenced by an average duration of 4.8 years for renters converting into property investors. Furthermore, homes priced above USD 10 million hit an all-time high, with approximately 500 such homes sold in the past year—an increase of 15% in volume and 28% in value. The luxury segment remains vibrant, with sales of properties over USD 25 million surging nearly 48% annually.

In conclusion, Dubai’s real estate market stands at the forefront of growth, supported by favorable regulations, government support, and rising demand across various market segments.