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Dubai’s real estate sector witnesses a thunderous 2025

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Dubai’s real estate market has shown unprecedented growth in 2025

Driven by robust demand, population growth, and an influx of high-net-worth individuals, Dubai’s real estate market showed exceptional growth in 2025, registering unprecedented milestones in the process. Property prices and rental rates, both in the residential and commercial segments, showed strong performance.

“The real estate sector has recorded 214,912 transactions in sales, valued at AED 682.5 billion. This reflects an 18.86% increase in volume and 30.7% growth in value. This performance demonstrates steady market growth and strong investor confidence in the Emirate. The total gift transactions were 9,556, valued at AED 57.25 billion, while the mortgage transactions reached 50,974, valued at AED 179.26 billion,” stated the Dubai Land Department (DLD).

With elements like flexible payment plans, affordable entry, strong potential for high rental yields and strong capital appreciation coming into play, DLD noted that apartments remained attractive to investors and homebuyers.

The market recorded approximately 203,000 residential sales, representing a 17.34% increase from 2024. Off-plan properties dominated the market, with a 62.6% share of total transactions.

“Total off-plan sales are 134,623, valued at approximately AED 293 billion. The off-plan properties cater to buyers and investors looking for modern design, top-tier amenities, premium finishes, smart home features, and strong capital appreciation,” DLD stated.

According to Shireen Khan, CEO of Kelt and Co Realty, “Dubai’s real estate market has shown unprecedented growth in 2025. This upward trend reflects stable activity from both end-users and investors. As we move into 2026, the growth is expected to accelerate due to the growing population, increasing demand for residential and commercial spaces, and lucrative investment opportunities.”

Jumeirah Village Circle, Business Bay, Dubai Land Residence Complex, Dubai Investment Park Second and Madinat Al Matar were the top-performing areas in terms of the total asset sales volume in 2025. In terms of “Top Performing Areas by Value,” the top five areas were Business Bay, Jumeirah Village Circle, Al Yelayiss 1, Dubai Investment Park Second and Palm Jumeirah.

The mortgage market, too, continued its upward momentum in 2025, closing 50,974 deals, marking an increase of 22.5% from 2024. The mortgage values reached AED 179.26 billion, a 4.5% YoY decrease.

Shireen Khan concluded, “With transparent regulations, long-term visas, and the development of cutting-edge infrastructure, investors’ confidence is increasing in Dubai’s real estate market. This has developed a favourable environment for both local and international investors, allowing them to benefit from strong capital appreciation and high rental yields.”

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