Dubai’s residential property market recorded strong performance over the past five years, continuing its upward trend for the fifth year in a row in one of the longest growth cycles the market has seen in its modern history.

The average selling price of residential properties rose from AED 833 per square foot in 2020 to AED 1,673 per square foot in 2025, an increase of nearly 100% over five years, according to data from Betterhomes and Property Monitor.

Based on the compound annual growth rate, the market achieved annual growth of around 14.9% between 2020 and 2025. This reflects continued real demand and strong investment momentum in Dubai’s real estate sector.

Although the market maintained double-digit growth every year, the pace of price increases began to moderate in 2025, when prices grew by 12% annually, compared with rates ranging between 16% and 18% in previous years. This indicates that the market is moving toward a more balanced and stable phase.

Major Property Deliveries in Dubai

On the supply side, Dubai has entered a clear phase of expansion in residential handovers. In 2025, around 39,500 residential units were delivered, with apartments accounting for the largest share at about 77%, or nearly 31,000 units.

These deliveries were concentrated in several high-demand areas, including Jumeirah Village Circle, Business Bay, Arjan, and Sobha Hartland. These communities continue to attract buyers and tenants due to their varied residential options and strategic locations.

Estimates indicate that around 98,000 residential units could be delivered in 2026, rising to more than 111,000 units in 2027. A large portion of these units is expected to be concentrated in Dubai South and Jumeirah Village Circle, along with villa communities such as DAMAC Lagoons, The Valley, and Arabian Ranches 3.

Despite the expected rise in supply, market indicators remain positive. So far, no clear pressure on prices has appeared, which reflects the market’s ability to absorb new units, supported by population growth and continued investor inflows.

Real Demand Supports Dubai’s Property Market

Dubai’s real estate market continues to be supported by strong fundamentals, led by population growth. The emirate’s population has exceeded four million, strengthening demand for residential units from both end users and investors.

Both the off-plan and secondary markets continue to record strong levels of activity, reflecting the diversity of buyers and the depth of liquidity in the market.

The Golden Visa program also enhances the appeal of long-term ownership, especially for investors and those looking to settle in the emirate. At the same time, the dirham’s peg to the US dollar provides an important level of monetary stability for international investors.

Greater Stability in the Next Phase

On the financial side, the 75-basis-point cut in US interest rates in 2025, along with expectations of further cuts in 2026, helped reduce financing costs and support buyers’ purchasing power.

Together, these factors suggest that Dubai’s property market has strong foundations that can help it absorb the upcoming wave of supply, while supporting growth at a more balanced and sustainable pace in the coming period.