Dubai Real Estate Market Posts 10% Annual Growth Despite August Slowdown

Dubai, September 2025 — Dubai's property market continued its strong upward trajectory in August, registering a 10% year-on-year increase in transaction value, even as monthly activity dipped compared to July.

Key Market Highlights – August 2025

• AED 42 billion in residential transaction value recorded
• 17,710 residential units sold, a 5.9% drop from July
• AED 1,932 per sq ft – average residential price, up 2.1% YoY
• 73% of all sales came from off-plan properties
• 58% of transactions were mortgage-backed, indicating rising reliance on home financing
• Investors made up 59% of all buyers, while end-users comprised the remaining 41%
• Rental contracts crossed 41,500, showing healthy momentum in the leasing market

What's Driving the Market

The continued dominance of off-plan sales reflects strong confidence in future supply, developer reputation, and price appreciation potential. This trend aligns with comprehensive guides to off-plan property investment that highlight the advantages of pre-construction purchases.

Smaller apartments led demand in the city's vertical segments, with one-bedroom units accounting for nearly half of all apartment transactions. Meanwhile, in the villa category, four-bedroom homes remained the top choice, underscoring steady demand from affluent families and expatriates.

The rising share of mortgage-backed transactions signals both affordability-focused buying and a shift towards long-term property investment. Simultaneously, investor appetite remains strong—fuelled by Dubai's continued appeal as a global investment hub and safe-haven for capital, particularly as wealthy Chinese investors increase their Dubai presence.

Rental Market Holds Strong

Dubai's rental market maintained upward momentum, with a notable rise in new leasing contracts. Certain neighbourhoods continued to lead rental price growth, particularly in villa and affordable apartment clusters, driven by high occupancy and limited new stock. This contrasts with earlier market conditions when landlords offered extended rent freezes to attract tenants.

Outlook

While the slight monthly dip in August is seen as seasonal, the broader market fundamentals remain solid. The combination of off-plan optimism, investor-led momentum, and robust mortgage uptake points to a maturing real estate cycle in Dubai.

This positive trajectory supports recent analyses suggesting that now is an opportune time to invest in Dubai real estate, particularly for Indian investors seeking international property exposure.

With the city continuing to attract high-net-worth individuals, digital nomads, and global investors, the market appears well-positioned for further growth—though price sustainability, delivery timelines, and global macro conditions will remain factors to watch. The Dubai real estate outlook and forecasts continue to show optimism despite periodic monthly fluctuations.

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