Real Estate Residential Market Report 2025
Dubai at a Glance
Dubai’s economy remained resilient throughout 2025, with UAE GDP growth estimated at 4.8%, driven largely by non-oil sectors including tourism, finance, logistics, and real estate. This economic strength translated directly into housing demand, as Dubai’s population surpassed 4 million, with nearly 177,000 new residents added in the first ten months of the year.
The city also reinforced its position as a global wealth destination, attracting an estimated 9,800 new millionaires by year-end. At the same time, urban development continued to align with the Dubai 2040 Urban Master Plan, supporting long-term residential demand through infrastructure investment and large-scale master-planned communities.
Sales Activity and Market Structure
Dubai recorded over 202,000 residential sales transactions in 2025, with total transaction value reaching AED 546.8 billion. Off-plan sales accounted for approximately 65% of total activity, reflecting continued confidence in the development pipeline and limited availability of ready homes in established communities.
Apartments represented the majority of transactions, driven by accessibility and yield potential, while villas and townhouses attracted sustained interest from families, lifestyle buyers, and long-term investors. Demand was particularly strong in well-planned communities offering space, amenities, and long-term liveability.
Pricing, Rents, and Yields
Residential prices ended the year approximately 12% higher overall, with growth moderating toward year-end. Villas and townhouses outperformed apartments in terms of price growth, reinforcing the importance of asset quality and location.
Dubai’s rental market remained highly active, supported by population growth and strong renewal activity. Average gross rental yields remained competitive at around 6.5%, with apartments continuing to deliver attractive income returns compared to global peers.
Supply and Outlook for 2026
Just over 40,000 residential units were delivered in 2025, with new supply released in a measured and phased manner. While a significant pipeline exists for later years, near-term supply remains broadly aligned with demand fundamentals.
Looking ahead to 2026, the market is expected to move into a more balanced growth phase. Price and rental growth are likely to moderate further, with performance increasingly split between prime, well-located assets and more commoditised stock. The outlook favours selective investment strategies focused on quality, location, and long-term resilience rather than broad-based market momentum.
Know More
Download the full Dubai Residential Market Report 2025 for detailed data tables, community-level analysis, and investment insights.
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RERA: 49865
