Dubai Real Estate Market Trends in 2025

Real Estate & Construction

Dubai Real Estate Market Trends in 2025

Dubai’s property market has been one of the world’s fastest-moving in 2025, with strong buying activity, rising prices, and rents in many submarkets. But a large delivery pipeline raises the risk of a correction later in 2025–26. To get a fair idea of Dubai’s real estate market, let us show you significant trends in Dubai.

Dubai Real Estate Market Trends in 2025

These are the most promising trends in the Dubai real estate market in 2025 so far:

High Transaction Volumes and Sales Value

From January to August 2025, Dubai reported sales value of real estate transactions of about AED441.22 billion, up roughly 33.7% year-on-year. Total deals also increased 21.5% to reach 1,37,013. These figures show demand remains high through mid-2025.

Tightened Financing and Mortgage Rules

The UAE/Central Bank mortgage rulebook and subsequent directives have changed buyer cashflow dynamics in 2025. Banks may no longer finance certain fees. DLD (Dubai Land Department) and broker fees must be covered up front by buyers in some implementations.

LTV (Loan-to-Value: the amount you can take up as a loan compared to the purchase value) caps and debt servicing rules remain in place for expats and nationals. EIBOR (The Emirates Interbank Offered Rate) and bank margins determine mortgage pricing. So, effective borrowing costs follow global rates. So, buyers relying on mortgages need larger upfront liquidity.

Moderate Rent Growth

H1 2025 rental reports show rents shot up across budget and mid-tier segments (budget rentals up to 9% in some subsegments; mid-tier up to 7% with variation by area). Overall, the lease contract value for Dubai also rose. It shows that landlords of spacious apartments and townhouses in Dubai and Sharjah can still earn attractive yields.

Off-plan and New Supply Driving the Cycle

Off-plan activity has a big share of total sales. It contributed to nearly ~69% in early 2025 in Q1 2025. Delivery volumes are large. ~17,300 units completed in H1 2025. Some sources suggest the emirate could add 60–100k new units through 2025–2026, depending on handovers. New supply helps meet demand but raises the risk of oversupply in certain submarkets.

Shifting Foreign Buyer Profile

Nationality flows changed in 2025. British buyer interest rose sharply — +62% YoY in Q2 2025. It made UK buyers the top foreign investor group in that quarter. Property platforms and developers are responding with targeted marketing and London sales offices. Currency moves and global macro trends (sterling/dirham moves) affect demand flows. International buyers can drive demand spikes in particular segments.

Maturing Market

Permira and Blackstone invested in Property Finder in 2025. The deal values the company at about $2bn. It shows that major institutional players (private equity funds) believe strongly in Dubai’s property-market infrastructure and data platforms. Transaction systems and fintech adoption are improving transparency and access.

Conclusion

Dubai in 2025 is still witnessing heavy transaction activity and strong price/rent moves in many submarkets. But a large delivery pipeline and changing financing rules mean the market is more nuanced than ‘all up.’ Check supply timelines and completion status.

Stress-test mortgage affordability for higher EIBOR periods. Prioritise quality, location, and liquidity over speculative timing. You’ve got sufficient profitable deals this way!