The Dubai real estate sector has showcased remarkable growth in 2025, posting impressive transaction figures. According to the Dubai Real Estate Report 2025 by Springfield Properties, transactions reached AED541.3 billion ($147.4 billion) with 200,779 residential sales. This marks a significant increase from 2024, which had AED426.7 billion ($116.2 billion) over 168,968 transactions. The ongoing demand for residential properties underscores the market’s resilience and appeal to buyers.

Year-on-Year Growth and Market Trends

The increase in year-on-year transaction values and volumes speaks volumes about buyer engagement in the market. This positive trend is fueled by growing population numbers and a robust interest from long-term investors and residents. The transaction landscape has remained active, encompassing both newly developed properties and established communities, thereby ensuring a balanced market dynamic.

A noteworthy point is that off-plan properties dominated the transaction scene, accounting for 138,992 sales in 2025. The ready and secondary market made up about 32.5% of the total residential transaction value, contributing to price stability in mature neighborhoods. This diverse array of properties suggests a healthy demand across different segments of the market.

Focus on High-Value Transactions

Farooq Syed, CEO of Springfield Properties, emphasized that the growth in the real estate market is not solely price-driven but reflects sustained demand. “When both transaction values and numbers increase, it indicates a robust market rather than inflationary pressures,” he stated. In 2025, this demand spanned both off-plan and completed homes, underlining the broad appeal of Dubai’s real estate offerings.

Residential activity was particularly concentrated in areas known for high transaction volumes like Jumeirah Village Circle, Business Bay, and Dubai South. On the other hand, prime waterfront locations such as Palm Jumeirah and Dubai Creek Harbour attracted a higher transaction value, highlighting their desirability and premium pricing.

Importance of Cash Buyers

Cash buyers continued to play a vital role in shaping Dubai’s residential real estate landscape in 2025. Their influence was particularly significant in established and prime neighborhoods, enhancing transaction completion rates and mitigating the impact of fluctuating external financing conditions. The steady population growth acted as a catalyst for housing demand, further supporting the market’s health.

Properties such as villas, townhouses, and branded residences maintained high demand due to limited supply in key areas and longer holding periods among buyers. “Cash buyers and end-users have been essential in keeping market activity vibrant throughout the year,” Syed observed, noting that this buyer profile has helped sustain prices and transaction frequency in established communities.

Commercial Real Estate Landscape

Shifting focus to the commercial sector, Dubai’s commercial real estate market achieved AED135.1 billion ($36.8 billion) in transactions across 12,850 deals in 2025. Offices took a larger share of the transaction value, followed by land, hotel apartments, retail, and industrial assets. This performance highlights the overall health of the real estate sector in Dubai.

In conclusion, Dubai’s real estate market has closed 2025 on a strong note with increased transaction volumes and values compared to the previous year. Supported by growing population dynamics, a diversified buyer base, and consistent demand across both residential and commercial sectors, market activity remains robust. As the landscape looks towards 2026, ongoing long-term residency programs and a gradual absorption of new supply are expected to continue driving demand, particularly in established and premium locations.