Dubai Real Estate Market Sales performance - August 2025

Dubai's property market delivered exceptional performance in August 2025, recording its highest August sales volume on record.

This represents a robust 14.0% increase in transaction volume and 8.0% growth in sales value compared to August 2024, reinforcing the emirate's status as a premier global real estate investment destination.

Real Estate Market Overview in Dubai: Record-Breaking August Performance

• Total Sales Volume: 18,716 property transactions were recorded in August 2025, marking a significant uptick from LY's 16,422 transactions (+14% YoY).

• Total Sales Value: The overall sales value to 51.5 Bil AED, compared to 47.6 Bil AED in August last year (+8% YoY)

This performance represents the third-highest monthly transaction volume for 2025, following July's record-breaking 20,322 deals and May's 18,693 transactions. The sustained momentum through the traditionally slower summer months underscores the market's exceptional resilience and continued investor confidence.

The average transaction value increased to approximately 2.75 Mil AED, reflecting a shift toward higher-value properties and premium segments. This upward trajectory in average pricing demonstrates Dubai's evolving market dynamics, were quality developments and strategic locations command premium valuations.

Segment Performance Breakdown

Off-Plan Properties - transactions dominance continues

Off-plan properties maintained their dominance in August 2025, accounting for 66% of total transaction volume with 13,207 deals worth 26.53 Bil AED. This segment demonstrated remarkable year-over-year growth of 26.1% in volume and 14.4% in value, highlighting sustained investor appetite for future developments and flexible payment structures.

Ready Properties - showed impressive growth

Ready properties showed even more impressive growth dynamics, with 5,204 transactions valued at 16.12 Bil AED. Despite representing 27.8% of total volume, this segment recorded exceptional year-over-year growth of 21.8% in volume and an outstanding 82.2% in value growth. This surge in ready property values reflects the premium investors are willing to pay for immediate occupancy and established communities.

The preference for off-plan properties reflects buyers' strategic approach to capitalizing on Dubai's future growth trajectory.

Check out our research article on key considerations for buying off-plan vs ready properties in Dubai.

Geographic Performance: Leading Districts Drive Growth

Business Bay emerged as the standout performer, leading Dubai's residential activity with 1,695 transactions worth 4.1 Bil AED. The district's central location, proximity to Downtown Dubai and DIFC, and strong rental demand from corporate tenants continue to attract both investors and end-users.

Jumeirah Village Circle (JVC) maintained its position as a key growth driver with 1,584 transactions valued at 2.1 Bil AED. The community's affordable price points, family-friendly amenities, and consistent rental yields of 7-8.5% make it particularly attractive to first-time buyers and investors seeking stable returns.

Other top-performing areas included:

• Jebel Ali First: 1,068 transactions worth 2.6 Bil AED

• Dubai Investment Park Second: 1,062 transactions worth 2.5 Bil AED

• Wadi Al Safa 5: 776 transactions worth 1.3 Bil AED

Premium developments in Dubai Hills Estate, Sobha Central, and Dubai Maritime City continued commanding strong pricing, reflecting sustained demand for centrally located, high-quality developments.

The percentage movement of overall transactions value by property type in August:

Apartments 29.2 %

Villas and Townhouses -38.1 %

Commercial properties 20.4 %

Land plots 7.4 %

Financing Trends: Mortgage Activity Strengthens

Mortgage-backed transactions demonstrated robust growth in August 2025, with 3,586 deals valued at 21.4 Bil AED. This represents a significant increase from traditional cash-dominated transactions, reflecting the market's maturation and growing accessibility to financing

The surge in mortgage activity aligns with broader market trends, including:

• Competitive interest rates below 4% offered by local banks

• Flexible payment plans from developers, including 70-30 and 80-20 structures

• Growing end-user demand as more residents transition from renting to ownership

Digital mortgage platforms and streamlined approval processes have further facilitated this growth, particularly among younger, tech-savvy buyers seeking long-term homeownership

Luxury Segment: Ultra-High-Net-Worth Activity

The luxury market continued to set benchmarks, with the most expensive property transaction being a Palm Jumeirah villa for 161 Mil AED (USD 43.8 Mil). The priciest apartment sale reached 100 Mil AED at Selicon Star 2, Nadd Hessa. These ultra-premium transactions reflect Dubai's growing appeal among global high-net-worth individuals and its establishment as a luxury lifestyle destination.

Market Outlook: Sustained Momentum Expected

Industry experts remain optimistic about Dubai's real estate trajectory. Farooq Syed, CEO of Springfield Properties, noted that "Dubai's real estate market continues to demonstrate balance. Off-plan sales highlight investor appetite for the city's future, while steady activity in the secondary segment reflects the trust end-users place in established communities"

The market's strength is supported by:

• Population growth from 3.86 Mil in January to 4.0 Mil in August 2025 (3.6% increase)

• Infrastructure development under the Dubai 2040 Urban Master Plan

• Government initiatives including the First-Time Home Buyer Scheme

• Long-term residency reforms attracting international residents

Investor Sentiment & Outlook

August 2025's performance data reinforce Dubai's position as a resilient, liquid, and growth-oriented real estate market. The strong transaction volumes, diverse geographic performance, and robust financing activity create an attractive environment for both short-term investors and long-term stakeholders.

Dubai provides a mix of advantages for foreign investors aiming to enter the property market, such as:

• Freehold property ownership and Zero property tax

• Zero personal income tax or capital gains tax, or withholding tax

• lowest corporate income tax rate of 9%

• 100% foreign business ownership

• 100% repatriation of capital investment and total profit earned

• 10-year investor Golden Visa

• Investor-friendly policies providing foreign investment protection

• One of the world’s top tourist centers

Latest news and initiatives

Dubai Land Department has signed a memorandum of cooperation with Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Turkey) region, to establish a joint framework for conducting regulatory and technical studies.

Under this partnership, both parties will collaborate on two forward-looking studies: the first study will focus on optimizing the registration process for real estate transactions concluded outside the UAE, while the second will focus on offering financial services that simplify the registration of real estate sales transactions.

According to data from the Dubai Land Department (DLD), the first half of 2025 saw the completion of 24 real estate projects valued at 4.5 Bil AED. 726 projects currently under construction across the emirate. Dubai’s real estate market registered 90,337 new real estate units during the first half of the year, serving as a clear indicator of the sector’s sustained growth.

Dubai’s real estate market recorded 4,049 new activities in the first half of this year, reflecting the emirate’s growing appeal as a leading investment destination and the wide range of opportunities it offers investors and service providers in the sector. A key element of this framework is the Dubai Land Department’s ‘Trakheesi System,’ the official platform for registering and activating a broad range of core sector activities.

Conclusion

Key takeaways for property investors and market participants include:

Market liquidity remains exceptional, with August recording the third-highest monthly transaction volume of 2025, demonstrating consistent buyer and seller engagement throughout the year.

Segment diversification offers opportunities across off-plan and ready properties, with ready property values showing particularly strong appreciation of over 80% year-over-year.

Geographic spread provides investment options from affordable entry-level areas like JVC to premium districts like Business Bay and luxury developments on Palm Jumeirah.

Financing accessibility through improved mortgage products and developer payment plans broadens the investor base and supports sustained demand growth.

Dubai's real estate market in August 2025 exemplifies the emirate's continued evolution as a global investment hub, combining strong fundamentals with strategic growth initiatives to deliver consistent returns for stakeholders across all market segments.

Source: Dubai Land Department; DXB Interact, Dubai Media Office