Dubai Real Estate Records Highest-Ever Quarterly Sales in Q2 2025 Amid Structural and Macroeconomic Tailwinds

Dubai’s real estate market achieved a record AED 184.3 billion (£39.7 billion) in sales during Q2 2025—a 49% year-on-year increase and the highest quarterly total in the emirate’s history. With 53,252 transactions completed, and average prices reaching AED 1,950 per sq.ft—up 86% since 2021—the performance highlights Dubai’s evolution from a sentiment-driven market into a more mature, institutional-grade investment destination. This transformation is backed by structural demand, regulatory reform, and supportive macroeconomic conditions.

Dubai ready and off-plan property trends reflected broad-based growth. Sales of completed, or “ready,” properties totalled 17,110 transactions (17% higher than Q2 2024 levels), generating AED 71.7 billion in value (+40%). Off-plan activity also remained robust, with 36,415 transactions (up 25% vs Q2 2024) amounting to AED 114.4 billion (+55%). While off-plan still accounts for more than 50% of overall volume, the rising share of activity in the ready segment suggests a shift towards more end-user and yield-driven investor participation.

This surge in activity has occurred against a backdrop of sustained regulatory modernisation and RERA reforms. Dubai’s Real Estate Regulatory Agency (RERA) continues to professionalise agency conduct, increase disclosure obligations, and digitise transaction processes—enhancing both transparency and price discovery. The introduction of the First-Time Home Buyer Programme has further broadened access to the market, particularly among residents seeking to transition from renting to ownership in the face of rising rental yields. All of these factors contributed to an increase in Dubai real estate investment in 2025.

From an institutional standpoint, Dubai is increasingly being allocated not merely as a tactical play, but as part of a strategic real estate portfolio. On a price-per-square-foot basis, it remains materially discounted relative to global gateway cities such as Singapore, London, and New York, while offering tax neutrality, freehold ownership for foreign investors, and deepening legal infrastructure.

Dubai property market’s strong performance must also be seen in the context of broader macroeconomic tailwinds. The US Federal Reserve’s move towards monetary loosening in H2 2025 has contributed to an improving global liquidity environment, strengthening investor appetite for real assets in dollar-linked economies such as the UAE.

Regionally, Dubai continues to attract long-term capital reallocation driven by macroeconomic strength. From 2020 to Q1 2025, Dubai’s population grew by 15% to 3.92 million, while the UAE’s GDP is forecast to grow by 4.7% in 2025—well above the global average of 3.3%. Over 70% of national output is now driven by non-oil sectors like logistics, tourism, finance, and real estate. With oil's share of GDP declining from over 50% in the early 2000s to ~27% in 2024, and inflation expected to stay under 2%, Dubai is increasingly viewed as a stable, tax-efficient hub for global capital and long-term real estate deployment.

Dubai is emerging as a leading global investment hub, underpinned by strong ESG credentials, sovereign fund activity, and appeal to global wealth. Its Net Zero 2050 agenda and mandatory green certifications are driving premium valuations, supported by major commitments like Alcazar’s USD 490M fund and the COP28-backed USD 30B Alterra Fund. The city attracts over 5,000 millionaires annually, supported by tax-friendly policies and lifestyle appeal. Sovereign wealth fund activity remains robust, with Mubadala investing USD 29.2B in 2024 surpassing Saudi PIF while Investment Corporation of Dubai (ICD) manages over USD 320B in assets, reinforcing Dubai’s international investment positioning.

Fitch Ratings has recently cautioned that the market may face a price correction of 10–15% in late 2025 or 2026, driven primarily by a projected supply pipeline exceeding 210,000 units across the UAE. However, this risk appears cyclical rather than structural. Leverage remains modest by historical standards, particularly in the residential segment, and demand for villa communities and prime urban locations continues to outstrip supply.

Crucially, this is not a market being driven by overextension or loose credit. Rather, it is underpinned by demographic growth, infrastructure investment, and growing global relevance.

Dubai’s record-breaking Q2 performance reflects more than short-term momentum. It signals a deeper repositioning of the market—towards institutional credibility, regulatory sophistication, and macroeconomic alignment. For investors seeking exposure to real estate with capital appreciation potential, geographic diversification, and legal predictability, Dubai is no longer viewed as peripheral. It is being priced as part of the core.