In H1 2025, Dubai's real estate market saw a 23% rise in transactions, reflecting sustained demand and a shift towards long-term residency. Luxury properties and off-plan deals were particularly strong, driven by global interest and changing UK tax policies.

Dubai's residential real estate market has maintained strong momentum in the first half of 2025, with transaction volumes soaring by 23% year-on-year to a total of 91,897 sales across both secondary and off-plan sectors. This positive trend is highlighted in a recent analysis by Espace Real Estate.

The market's robust performance is largely attributed to persistent demand for both types of properties, whether off-plan or ready to move in. Upon examining the community-level data, the report suggests that Dubai is entering a stabilization phase.

Real Estate Developments in Dubai

Despite the overall increase in transactions, some of Dubai's established communities reported a slight decline in activity. Nevertheless, both rental and capital values have shown upward trends, indicating a shift towards long-term residency in the emirate.

John Lyons, Managing Director at Espace Real Estate, commented: "In H1 2025, the Dubai residential real estate continues to exhibit remarkable resilience and growth, driven by sustained demand for both off-plan and ready properties."

Off-plan deals constituted 59% of the residential activity during H1 2025, slightly down from 61% in the previous year. The completion of 17,013 off-plan units has notably enhanced the rental inventory, contributing to a moderation in rental price growth across newer communities.

There's a noticeable transition among residents, who are increasingly considering Dubai as a long-term home, rather than just an expatriate hub. This shift is fostering market stability and supporting sustainable growth.

The luxury real estate sector has shown remarkable strength, with properties priced over AED20 million ($5.4 million) experiencing a significant rise in transactions. This trend underscores Dubai's global appeal to wealthy investors, further boosted by recent changes in UK tax regulations, prompting affluent UK residents to relocate to Dubai.

Comparatively, villa and townhouse communities have diverged from the apartment sector in terms of price increases. Among the 20 communities tracked, 19 recorded price hikes, averaging a 19% rise due to limited supply. Meanwhile, average apartment prices increased in most communities, though at a slower pace, with an average increase of 8%, down from 17% in the previous year.

The UAE job market is undergoing major changes in Dubai

While rental activity has slightly declined, the influx of new communities is helping balance supply and demand, preventing excessive rental price hikes.

Buyer interest at Espace Real Estate demonstrates Dubai's enduring appeal, fuelled by diverse international investments. Although the UK continues to lead as the top investor source, there is growing interest from Europe, North America, and Asia Pacific, signifying Dubai's rising status as a permanent home for the global elite.

The report concludes that this moderation could pave the way for a more sustainable, long-term expansion of Dubai’s property sector, reflecting a stable market poised for continued growth.