Dubai’s real estate market once again proved its resilience in the third quarter of 2025, posting performance figures that surpassed expectations—even during the typically quieter summer months. According to a recent report by Engel & Völkers Middle East, residential property sales rose by 22.7% year-on-year, while commercial property sales surged by 31%.

These results reflect the emirate’s global appeal and stability as a property investment destination, supported by strong investor confidence, a rising population now exceeding four million, and growing interest from end-users looking to settle long-term in Dubai.

A Market Driven by End-Users, Not Just Investors

Daniel Hadi, CEO of Engel & Völkers Middle East, emphasized a notable shift in the market dynamic. He pointed out that Dubai is attracting not just short-term investors, but individuals and families who are choosing to make the city their permanent home.

He stated, “Dubai’s real estate market has reached unprecedented levels of growth. What’s remarkable is that it’s no longer just investor-driven. We’re now seeing people making long-term commitments to live, work, and build their futures here.”

Residential Market Highlights: Off-Plan Takes the Lead

The residential sector remained a strong performer, with off-plan properties accounting for approximately 70% of all transactions. Buyers were particularly drawn to new developments such as Dubai Science Park, DAMAC Riverside, and Dubai Land Residence, attracted by their long-term growth potential.

Meanwhile, demand also remained strong in the resale market, especially in high-demand neighborhoods like Downtown Dubai and Dubai Marina. These areas continue to attract buyers due to their lifestyle offerings and limited supply.

Apartments dominated residential activity, representing 87% of all transactions. In total, 47,705 apartment units were sold during the quarter, generating AED 91.4 billion in value—a 26.4% increase compared to the same period last year.

Luxury Property Market Sees Historic Highs

Dubai’s luxury property market delivered one of its best quarters ever, with 1,388 transactions exceeding AED 10 million each—marking the second-highest quarterly performance on record. Among the standout deals was an under-construction villa in Jumeira Azura Bay sold for AED 350 million, and an AED 173.6 million apartment at Aman Residences in Jumeira.

Commercial Real Estate Grows Across the Board

Commercial real estate also saw widespread growth, recording 3,418 transactions totaling AED 30.4 billion—a 31% year-on-year increase. The surge was driven by strong demand across office spaces, retail units, land plots, and entire buildings.

The Business Bay district led the commercial surge with AED 3.4 billion in transaction value, followed by Ras Al Khor, which saw major land deals totaling AED 2.9 billion.

Office spaces were particularly in demand, with 1,151 transactions amounting to AED 3.1 billion—nearly double the total seen in the previous year. The trend highlights growing interest from companies seeking high-quality workspaces in prime locations.