Dubai Real Estate Closes 2025 with Record-Breaking Growth

Dubai’s real estate market concluded an extraordinary 2025 with a powerful surge in December, cementing the year as the strongest on record for the emirate’s property sector. Annual transactions reached an unprecedented 215,700 sales valued at AED 686.8 billion, reinforcing Dubai’s standing as one of the world’s most attractive and resilient real estate investment destinations.

December maintained the year’s exceptional momentum, with monthly sales value rising 46.4% year-on-year to AED 63.1 billion, while transaction volumes climbed 21.3% to 18,587 deals, according to data analysed by DXBInteract.

An in-depth market report released by fäm Properties highlights 2025 as a defining year driven by sustained investor confidence, strong end-user demand, rising property values, and a well-aligned supply pipeline responding effectively to market needs.

Market Performance at a Glance

• Total transactions: 215,700 (+18.7% YoY)

• Total sales value: AED 686.8 billion (+30.9% YoY)

• Primary market: 149,230 first sales worth AED 448.1 billion (+33.6% YoY)

• Secondary market: 66,400 resale transactions worth AED 238.8 billion (+26.2% YoY)

Average prices continued to trend upwards across both segments. Primary market prices reached AED 1,700 per sq ft, reflecting a 6.7% increase, while secondary market prices rose more sharply by 11.2% to AED 1,500 per sq ft.

Supply and Development Activity

Developers responded decisively to strong demand, delivering 42,784 residential units, a 45% increase compared to 2024. New project launches also rose, with 177,624 units introduced to the market, up 6.1% year-on-year.

Leading delivery areas included Jumeirah Village Circle, Dubai Marina, Business Bay, Arjan, and Dubai Creek Harbour. Emaar led developer deliveries with 7,321 units, followed by Binghatti and Azizi.

Five-Year Growth Trajectory

Dubai’s real estate evolution is underscored by its dramatic five-year expansion:

• Sales value: from AED 71.5 billion in 2020 to AED 686.8 billion in 2025

• Transaction volumes: from 34,700 to 215,700 over the same period

Market Insights

Commenting on the results, Firas Al Msaddi, CEO of fäm Properties, said: “These figures demonstrate that Dubai’s property sector has fundamentally matured. This is not a short-term growth cycle, but the result of diversified global investor demand, disciplined development, and long-term economic confidence.”

He added: “The strong performance of both new launches and resale properties confirms market liquidity and investor confidence, allowing buyers and sellers to enter and exit positions with ease.”

Segment Performance

• Apartments: 170,448 transactions (+19.9%) valued at AED 332.9 billion

• Villas: 34,671 sales (+11.1%) worth AED 206.9 billion

• Commercial properties: 6,086 transactions (+41.1%) valued at AED 18.2 billion

• Plots: 4,446 sold worth AED 128.5 billion

• Buildings: Sales rose 306.3% to 65 transactions

Primary sales dominated the market, accounting for 69% of transaction volumes and 65% of total value.

Record-Breaking Deals

The year’s most expensive transactions included:

• AED 550 million apartment at Bugatti Residences by Binghatti, Business Bay

• AED 425 million villa in Emirates Hills

Outlook for 2026

With rising prices, accelerating construction activity, and strong global capital inflows, Dubai’s property market enters 2026 from a position of exceptional strength, supported by economic stability, investor-friendly policies, and continued demand across residential, commercial, and luxury segments.