Dubai's real estate sector recorded $17.3bn in sales this July thanks to robust off-plan transactions and new tax reforms promoting investor confidence.

In July 2025, Dubai's real estate market soared to unprecedented levels, achieving AED63.6 billion ($17.3 billion) in property transactions. This represented a substantial 27% year-on-year rise in transaction value and a 24% increase in volume, as detailed in the latest market performance report from Property Finder.

The remarkable growth was primarily fueled by strong off-plan sales, heightened activity in the secondary market, and a significant policy shift introduced by the UAE Ministry of Finance. The new regulation allows for corporate tax deductions on investment properties assessed at fair value, aligning with international accounting standards and offering investors greater flexibility.

Dubai Real Estate Growth

The report highlighted several key trends:

  • Secondary off-plan transactions reached AED7.6 billion ($2.07 billion), marking a 123% surge in value and an 88% rise in volume compared to July 2024.
  • The primary ready market witnessed 1,961 deals amounting to AED12.2 billion ($3.32 billion), underscoring robust demand for newly completed units.

Overall, primary market sales tallied AED31.9 billion ($8.7 billion), up 32% year-over-year, with notable deals taking place in Wadi Al Safa 3 and Dubai Investment Park.

The secondary market contributed closely with AED31.7 billion ($8.6 billion) across 8,221 transactions - a growth of 22% in value and an 18% boost in volume from last year’s figures. Significant factors included:

  • An industrial land transaction worth AED1.1 billion ($299.5 million) in Al Wasl
  • Increased dealings within Ras Al Khor, Jumeirah Second, and Marsa Dubai areas

A critical update by the UAE Ministry of Finance now enables depreciation deductions based on current market values rather than historical costs - a change warmly received by investors and analysts alike.

Cherif Sleiman, Chief Revenue Officer at Property Finder remarked: “With its resilient market dynamics paired with investor-centric policies and transparent data practices, Dubai maintains its status as one of the world’s most appealing real estate destinations.”

Sleiman further noted that the Ministerial Decision allowing tax write-offs for depreciation based on fair valuation is strategically aligned with global standards.

This regulatory development represents proactive governance fostering long-term confidence among investors while permitting businesses to leverage real-time valuations for tax purposes - enhancing flexibility alongside potential cost savings.” The country's evolving regulatory framework not only boosts reporting transparency but also incentivizes growth opportunities for developers aiming to expand their portfolios.” The demand for smaller residential units like one-bedroom apartments or studios intensified as renters transitioned towards ownership amidst escalating rental costs.

  • Apartments were preferred by buyers more frequently than villas due to affordability concerns; they accounted for approximately 62% of buyer interests while capturing nearly 80% of rental searches.
  • Studio apartments captured around 22% of all rental queries though they comprised only about16 % purchase interest.
  • One-bedroom homes constituted roughly36 % procurement inquiries contrasted against40 % seeking rentals thereof.