Explore Dubai's Real Estate: Insights, News, and Updates

Dubai Real Estate Insights: Market Growth Accelerates in 2025

Dubai’s property sector continues to set new benchmarks, with the Dubai Land Department (DLD) reporting the addition of 90,337 real estate units worth Dh151 billion during the first half of 2025. The emirate also marked the completion of 24 projects valued at Dh4.5 billion ($1.2 billion), underscoring the city’s strong development momentum.

According to the DLD, there are currently 726 projects under construction, highlighting the rapid pace of project delivery aimed at meeting rising demand for villas, townhouses, and master-planned residential communities.

Growing Demand for Villas and Communities

In the first six months of 2025 alone, buyers purchased 7,167 villas valued at more than Dh28 billion. This surge reflects a notable shift in buyer preferences away from apartments and toward standalone homes and fully integrated communities that provide lifestyle convenience and long-term value.

The market’s resilience is remarkable, especially given its quick rebound from the Covid-19 slowdown. Dubai has maintained strong growth momentum, supported by government-led initiatives such as extended golden visa residency schemes, flexible investor policies, and targeted programmes that make property ownership more accessible to residents.

Empowering First-Time Buyers

A new initiative launched in July specifically supports Emiratis and UAE residents who do not yet own freehold homes. Through this programme, first-time buyers receive priority access to new launches and existing stock, alongside exclusive discounts, flexible payment schedules, and enhanced mortgage solutions offering better interest rates, faster approvals, and reduced fees.

The DLD expects this move to bring an additional 5,000 investors into the market in 2025, further diversifying the buyer base.

Record-Breaking Sales Activity

Data from consultancy Knight Frank shows that Dubai recorded over 51,000 home sales in Q2 2025, representing a 22.8% year-on-year increase and setting a quarterly sales record. Total transactions for the first half of the year surpassed 94,000, keeping the market firmly on track to exceed the 169,000 deals closed in 2024.

Rental Market Trends

The rental market has also shown consistent growth. During the first half of 2025, Dubai registered 465,738 lease agreements, up from 462,657 in the same period last year. The total value of lease contracts reached nearly Dh42 billion, a 5% annual increase. New leases grew by 7%, reaching 232,928 contracts compared to 217,101 last year.

Expanding Investor Base

In a further boost to the investment climate, Abu Dhabi’s Masdar City recently partnered with the DLD, enabling Masdar’s free zone companies to own properties in Dubai. This move is expected to strengthen cross-emirate investment flows and attract more corporate buyers.

Industry experts also highlight strong demand in the off-plan market, where developers continue to launch projects with flexible payment plans and large-scale master communities tailored to long-term living.

Outlook

“Transaction volumes in Dubai remain steady at a very high level, supported by the scale and speed of new launches,” said Farooq Syed, CEO of Springfield Properties. “We’re seeing exceptional strength in the off-plan segment, where developers are aligning their offerings with buyer expectations for community-focused, lifestyle-oriented developments.”

With population growth, infrastructure expansion, and supportive policies all in play, Dubai’s real estate sector is on track to sustain its growth trajectory and reinforce its position as one of the world’s most attractive property markets.