Dubai Real Estate Market Sales Performance – December and Full Year 2025

Dubai's Real Estate Market: A Record-Setting Year in 2025

Dubai's real estate market closed 2025 with its strongest performance on record, capping the year with a powerful December finish. For investors, owners, and market stakeholders, 2025 was not just another strong year. It consolidated Dubai’s status as a mature, highly liquid global real estate hub. The market exhibited depth across off-plan and ready segments, all main asset classes, and a broad spread of locations.

December 2025: A Record-Setting Year-End Surge

• Total Sales Volume: 18,592 transactions.

• Total Sales Value: Reaching 63.2 Bil AED.

  
  

December 2025 was one of the strongest months ever recorded in Dubai property sales, both in value and in the number of transactions.

The average price per square foot climbed to AED 1,804 ($492), representing a 2.8% month-over-month increase. This consistent price appreciation across segments demonstrates fundamental market strength and sustained investor confidence in Dubai's long-term value proposition.

Segment Performance Breakdown: Off-Plan Surge, Apartments Dominate

Off-Plan Properties

Off-plan property transaction activity remained elevated due to prolonged payment schedules and the launch of new projects in various master-planned communities.

The strength of the off-plan segment reflects several key market drivers. Major project launches across premium and mid-market segments, competitive developer incentives, and robust investor confidence in Dubai's development pipeline have all contributed to this growth.

Ready Properties

The resale market recorded lower transaction volume but stronger price appreciation. The preference for off-plan properties reflects buyers' strategic approach to capitalizing on Dubai's future growth trajectory. I encourage you to check out our research article on key considerations for buying off-plan versus ready properties in Dubai.

The percentage movement of overall transaction value by property type in December is as follows:

Apartments: 37%

Apartments continued to be the workhorse of the market in both volume and liquidity. This trend is supported by steady end-user and investor demand.

Villas and Townhouses: 16.6%

The strongest interest remained in family-oriented communities and premium master-planned areas.

Commercial Properties: 190.8%

There were over 700 commercial transactions (offices, retail, hospitality) totaling around AED 2.3–2.6 billion. The commercial sector showed some of the highest year-on-year growth rates in 2025.

Land Plots: 103%

Approximately 390–400 plots traded, with values in the mid-teens of billions of dirhams. This confirms continued confidence in future development opportunities and land banking strategies.

Full Year 2025 Real Estate Market in Dubai: The Strongest Year on Record

• Total Sales Volume: 215,736 transactions

• Total Sales Value: Reaching 686 Bil AED

  
  

Dubai’s real estate market closed 2025 at an all-time high. Based on transaction records from the Dubai Land Department, total property sales reached AED 686.8 billion across 215,736 transactions. This represents about 31% more sales value than 2024, decisively outperforming the previous all-time record.

The investor base continued to expand, reaching around 193.1 thousand, an increase of 24%. This included 129.6 thousand new investors, representing 23% growth. Resident investors accounted for 56.6% of the total.

For context:

• 2020 transaction value: AED 71.5 billion

• 2025 transaction value: AED 686.8 billion

  
  

This represents cumulative growth of 861% over five years.

First-sale deals represented about 70% of all transactions, confirming the dominance of developer-led activity in Dubai’s growth phase. Ready properties saw fewer transactions but higher average ticket sizes in prime and mature communities, especially in villas and income-producing stock.

Financing Trends: Mortgage Strengthens

Mortgages represented a growing share of total value, reflecting the rise of end-users and longer-term financing-backed investors. Around 51,000 mortgage deals totaled roughly AED 179–180 billion in 2025.

Dubai provides a mix of advantages for foreign investors aiming to enter the property market. These include:

• 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

  
  

Future Outlook: What Lies Ahead?

As we look ahead, the dynamics of the real estate market in Dubai are poised for continued growth. The strong performance in 2025 sets a solid foundation for the coming years.

Sustained Demand

The demand for real estate remains diversified across various segments. End-users, regional investors, and global capital continue to show interest in Dubai's property market. This diverse demand will help stabilize the market and encourage further investment.

Project Pipeline

The pipeline of under-construction and newly launched projects is expected to moderate extreme price spikes while still supporting long-term appreciation. This balance is crucial for maintaining investor confidence and ensuring sustainable growth.

Market Resilience

The market enters 2026 from a position of record strength, not excess. This resilience is essential as we navigate potential challenges and opportunities in the global economy.

Conclusion

While this report is focused on 2025 data, the profile of December’s performance and the full-year numbers set the tone for 2026. The market is capable of repeatedly delivering monthly sales north of AED 60 billion and annual totals approaching AED 1 trillion. This growth is underpinned by real demand and long-term structural drivers.

In conclusion, the performance of Dubai's real estate market in 2025 is not merely an aberration. It is a confirmation of a new baseline, showcasing the market's potential for sustained growth and profitability.

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