Dubai property market caps record-shattering 2025 with powerful December finish

06/01/2026 02:42 AST

Dubai's real estate sector closed 2025 on a historic high, powering through December with a surge in transactions that cemented the emirate's status as one of the world's most dynamic property markets, a report showed on Monday.

The city achieved an unprecedented 215,700 property sales last year worth Dh686.8 billion, marking the strongest performance ever recorded, new data from fäm Properties, based on DXBInteract figures, shows.

The record annual tally represents 18.7 per cent growth in transaction volume and an impressive 30.9 per cent jump in sales value compared with 2024 - growth that analysts say reflects deep investor confidence, rising global demand for Dubai assets and a construction pipeline increasingly aligned with market needs.

December itself capped the year with exceptional momentum: monthly sales climbed 46.4 per cent year-on-year in value to Dh63.1 billion, while sales volumes rose 21.3 per cent to 18,587 transactions, underscoring the emirate's sustained appeal to both local and international buyers.

"These figures show that Dubai's real estate market has genuinely evolved - this isn't just another growth cycle," said Firas Al Msaddi, CEO of fäm Properties. "We're seeing several powerful trends come together: a much more diverse investor base with strong flows from Asia, Europe, and the Americas, and a supply pipeline that's aligned with demand after years of disciplined development."

A year defined by growth across every segment
The market's performance in 2025 was broad-based, with both the primary and secondary sectors posting sharp gains. Developers continued to dominate activity with 149,230 first-sale transactions valued at Dh448.1 billion, reflecting a 33.6 per cent increase from the previous year. The secondary market also remained robust, registering 66,400 resale deals worth Dh238.8 billion, up 26.2 per cent year-on-year.

Price appreciation was equally notable. In the primary market, average prices rose 6.7 per cent to Dh1,700 per sq ft, while secondary market prices climbed 11.2 per cent to Dh1,500 per sq ft, signalling strong end-user and investor appetite.

One of the year's most striking features was the scale of new supply delivered. Developers completed 42,784 residential units, up 45 per cent from 2024, in a response Al Msaddi described as "*evidence that developers are reading the market well*." Meanwhile, 177,624 new units were launched, a 6.1 per cent increase, ensuring a healthy pipeline into 2026.

"The fact that both new launches and resale properties are performing strongly tells us investors are confident they can enter and exit positions when needed,*" Al Msaddi added.

Apartments dominate, but villas and commercial assets also thrive
Apartments accounted for the bulk of activity, with 170,448 sales worth Dh332.9 billion, an increase of nearly 20 per cent. Villa sales rose 11.1 per cent to 34,671 units, totalling Dh206.9 billion.

Commercial real estate emerged as one of the strongest sectors of the year: transactions surged 41.1 per cent to 6,086 units, generating Dh18.2 billion in value. Meanwhile, 4,446 plots changed hands for Dh128.5 billion. Even building sales - a relatively small segment - saw a dramatic 306.3 per cent increase to 65 buildings worth Dh211.9 million.

Overall, first-sale properties accounted for 69 per cent of all transactions, reaffirming the dominance of developer-led activity.

Where buyers invested in 2025
Among the communities, Jumeirah Village Circle (JVC) topped the charts with 18,755 transactions worth Dh24.5 billion, driven by mid-market demand and abundant new supply. Business Bay followed with 13,844 deals totalling Dh39.9 billion, reflecting its continued evolution as a vibrant mixed-use hub.

Other high-performing areas included Wadi Al Safa 5 (11,631 sales), Dubai South (10,025 sales), and Jebel Ali First (8,263 sales).

Developers delivering the most units in 2025 were led by Emaar, which handed over 7,321 homes, representing 17 per cent of all new supply. Binghatti followed with 4,093 units, and Azizi with 2,633.

Among the year's standout deals were a Dh550 million apartment at Bugatti Residences in Business Bay - the most expensive unit sold - and a Dh425 million villa in Emirates Hills.

A five-year transformation
Dubai's property market has undergone a dramatic transformation since 2020. Sales value has skyrocketed from Dh71.5 billion in 2020 to Dh686.8 billion in 2025 - nearly a tenfold increase. Over the same period, transaction volumes surged from 34,700 to 215,700, illustrating the depth of structural demand reshaping the sector.

As Dubai enters 2026, analysts say the market is poised to maintain its momentum, bolstered by strong global investor inflows, disciplined development, and the emirate's positioning as a secure and growth-oriented global hub.

Khaleej Times