Dubai Real Estate Market Sales performance - September 2025

September 2025 concluded a period of intense activity in the Dubai real estate market, characterized by record-breaking aggregate values and strategic governmental initiatives aimed at reinforcing market structure and professional standards.

This exceptional achievement represents a robust 16.1% increase in transaction volume and an impressive 25.3% growth in sales value compared to September 2024, cementing Dubai's position as a premier global real estate investment destination.

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

• Total Sales Volume: 20,324 transactions.

• Total Sales Value: reaching 54.61 Bil AED

This performance represents the second-highest monthly transaction volume for 2025, following July's record-breaking 20,248 deals, demonstrating sustained market momentum through the traditionally active Q3 period.

This divergence in year-over-year value growth, indicates a shift toward higher-value properties and premium market segments, with the average transaction value reaching 2.69 Mil AED, reflecting Dubai's evolving market dynamics where quality developments command premium valuations.

The average price per square foot climbed to AED 1,689 (USD 460), marking an 11.4% annual increase and continuing the upward trajectory from AED 858 in 2020. This consistent price appreciation underscores both the market's strength and Dubai's growing appeal to high-net-worth investors seeking premium assets.

Segment Performance Breakdown - Off-Plan Dominance with Ready Property Value Surge

Off-Plan Properties - transactions dominance continues

Off-plan properties maintained their dominant market position in September 2025, accounting for 70.8% of total transaction volume with 14,384 deals worth 29.80 Bil AED. This segment demonstrated solid year-over-year growth of 24.2% in volume and 23.1% in value, reflecting continued investor confidence in Dubai's development pipeline and flexible payment structures offered by developers.

Ready Properties - Value Surge

Ready properties delivered exceptional performance despite representing 26.9% of total volume, with 5,460 transactions valued at AED 16.19 billion. Most remarkably, this segment recorded extraordinary year-over-year growth of 16.4% in volume and an outstanding 96.5% in value growth. This dramatic value surge reflects the premium investors are willing to pay for immediate occupancy, established communities, and the scarcity of quality ready properties in prime locations.

The substantial value growth in ready properties indicates a fundamental shift in market dynamics, where completed developments in established areas are commanding significantly higher prices due to proven infrastructure, community maturity, and immediate rental income potential.

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: Key Districts Drive Activity

Jumeirah Village Circle (JVC) emerged as a top performer, maintaining its position as a preferred destination for both investors and end-users. The community's combination of affordability, family-friendly amenities, comprehensive green spaces, and consistent rental yields of 7-8.5% continues to attract diverse buyer segments seeking long-term investment opportunities

Business Bay sustained strong performance as a major commercial and lifestyle hub, offering investors excellent capital appreciation potential and robust rental yield opportunities. The district's central location, proximity to DIFC, and modern infrastructure continue to drive sustained demand from both local and international buyers.

Dubai Hills Estate maintained its appeal among high-end buyers, with the community's premium positioning, golf course amenities, and strong rental demand supporting consistent transaction activity. The development's master-planned environment and proximity to key business districts make it particularly attractive to families and executives

Other notable performing areas included:

• Dubai World Central: Recording significant villa transactions with an average value of AED 4.4 million

• Damac Islands - Seychelles 2: Attracting premium buyers with villa sales averaging AED 2.8 million

• Wadi Al Safa 3: Commanding ultra-premium prices with plot sales reaching AED 68.7 million

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

Apartments 20.5 %

Apartments dominated market activity with 17,112 transactions worth AED 31.8 billion, representing a significant increase from 14,167 sales worth AED 24.5 billion in September 2024.

Villas and Townhouses -36.8 %

Villa sales recorded 955 transactions worth AED 5.2 billion, down from 3,244 sales worth AED 14.6 billion in September 2024.

Commercial properties 46 %

Commercial properties showed robust growth with 514 sales valued at AED 1.5 billion, up from 352 sales worth AED 751.3 million in September 2024.

Land plots 66.3 %

Plots demonstrated exceptional growth momentum, with 1,545 sales worth AED 15.7 billion, representing a dramatic increase from just 282 sales worth AED 4.8 billion in September 2024.

Financing Trends: Mixed Mortgage Activity

Mortgage activity in September 2025 presented a mixed picture, with 3,647 mortgage-backed transactions valued at AED 12.23 billion. While mortgage transaction volume remained stable, the total mortgage lending value of AED 12.1 billion represented a 24.2% year-over-year decline, suggesting a trend toward larger cash transactions and higher-value property purchases.

This financing pattern indicates:

• Increased cash buyer activity from high-net-worth individuals and international investors

• Premium property focus where buyers prefer cash transactions for speed and negotiation advantages

• Market maturation with sophisticated investors diversifying payment methods based on strategic considerations

The shift toward cash transactions, representing 77.5% of total volume, demonstrates the market's appeal to affluent buyers and the liquidity available in Dubai's real estate ecosystem.

Luxury Market: Ultra-Premium Transactions Set New Standards

The luxury segment continued to establish new benchmarks, with exceptional high-value transactions recorded throughout September 2025. Notable premium sales included:

• Burj Khalifa office space: AED 95 million (USD 25.9 million)

• Aman Residences apartment: AED 83.5 million (USD 22.7 million)

• Palm Jebel Ali villa: AED 43 million for an 18,760 sqft property

• Business Bay apartment: AED 27.8 million for a 5,390 sqft unit

These ultra-premium transactions reflect Dubai's growing appeal among global ultra-high-net-worth individuals and demonstrate the market's capacity to absorb high-value investments across different property types and locations.

Market Outlook: Sustained Growth Trajectory

Industry experts remain highly optimistic about Dubai's real estate trajectory. Tara Khan, Sales Director of Kelt and Co Realty, noted: "Dubai's real estate market marks unprecedented growth in September. With cutting-edge infrastructure, the surge in high-net-worth individuals, and investor-friendly policies, Dubai continues to reinforce its position as a global real estate hub".

Investment Implications and Strategic Outlook

Market liquidity remains exceptional, with September recording the second-highest monthly transaction volume of 2025, demonstrating consistent buyer and seller engagement throughout traditionally strong Q3 periods.

Value appreciation is accelerating across segments, with ready properties showing particularly strong value growth of 96.5% year-over-year, indicating significant appreciation potential for completed developments in prime locations.

Segment diversification provides investment opportunities from affordable entry-level areas like JVC to ultra-premium developments in Business Bay and luxury waterfront properties, catering to diverse investor profiles and risk appetites.

Geographic expansion offers opportunities in both established prime areas and emerging districts, with plot sales surge indicating strong development pipeline and future supply creation.

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

The Dubai Land Department demonstrated a strategic commitment to institutional professionalization during September 2025. This focus materialized with the launch of the Emirati Real Estate Business Incubator, a six-month program scheduled to commence in late October. This initiative is designed to train 50 Emirati real estate firms and brokers, enabling them to transition into full-scale, highly professional agencies.

The DLD won the 'Inspirational Brand Category' award at the Asia-Pacific Property Awards 2025, an honor that affirms its standing as a regional leader in real estate governance. The recognition specifically cited the department's high standards, flexible regulations, and advanced digital ecosystem, which includes platforms like the Dubai REST app, Smart Valuation, and the Smart Rental Index.

Emaar Properties confirmed this strategic focus with the highly anticipated unveiling of its most exclusive residential offering, "Dubai Mansions," on September 24, 2025. Located adjacent to the already prestigious Dubai Hills Estate, this limited collection of ultra-luxury residences is designed for an elite global clientele, featuring expansive units ranging in size from 10,000, 15,000, to 20,000 square feet.

Emaar Properties released multiple new phases, including Sera 2 in Rashid Yachts & Marina, offering luxury waterfront apartments and duplex townhouses, and Selvara 3 at the Grand Polo Club & Resort, featuring luxury 4-bedroom villas focused on an equestrian lifestyle.

Dubai’s strategic objective to become the world’s premier smart city real estate hub was clearly articulated through the activities surrounding the Dubai PropTech Hub in September 2025. The Hub’s accelerator, the Pre-Launch Launchpad, saw its cohort achieve significant development milestones in preparation for Demo Day in early October. This ongoing activity is not merely speculative; it is directly supported by governmental funding, including the DLD’s AED 50 million innovation fund.

Sustainable development transitioned from a desirable amenity to a core regulatory compliance requirement during the 2025 reporting period. This institutional priority was emphasized by the 27th Water, Energy, Technology and Environment Exhibition (WETEX), which commenced on September 30, 2025, and featured a dedicated section for developers championing sustainable cities. Al Sa'fat green rating system, which sets strict energy efficiency benchmarks.

The UBS 2025 Bubble Index flagged a sharp rise in risk levels for Dubai’s real estate market, indicating potential overheating. This warning is based on a cumulative price surge of approximately 50% over the past five years, a momentum fueled by a 15% population increase and structural supply limitations.

Conclusion

Dubai's real estate market in September 2025 exemplifies the emirate's continued evolution as a global investment hub, combining strong fundamentals with strategic growth initiatives to deliver exceptional returns for stakeholders across all market segments. As the market moves into Q4 2025, the sustained momentum positions Dubai for continued outperformance and reinforces its appeal as a premier international real estate destination.

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