The healthy sector was driven by population growth, strong economic performance, and the continued influx of high net worth individuals.
The Dubai Statistics Center confirmed that the City’s population crossed four million in September.
Dubai Real Estate Outlook
At the same time, Oxford economists predicted GDP growth of 4.9 percent in the year 2025.
Coupled with Dubai’s free ecosystem, accessible property market, and relative affordability compared to other global cities, these factors support the needs of both investors and long-term residents.
Rooms managed full activity, accounting for 86 percent of all transactions in Q3 – up from 80 percent in Q2 and 75 percent in Q1.
Good plan sales remain a key growth driver, representing 69 percent of total deals with nearly 37,000 transactions.
The ready market maintained a steady pace with more than 16,500 transactions, in line with the two-year average of nearly 17,500 per quarter.
ZONE 6, includes important areas in the Al Khail Corridor – including Jumulah Village Circle, Dumulailand, Damac Hills 2, Galloy, and Damac Lagoons – captured 37 percent of the total, confirming its position as the most active area.
ZONE 3, home to established communities such as Dubai Marina, Emirates Living, and Barsha, followed by 29 percent.
Real estate sales
About 8,500 residential units were delivered in Q3, bringing the completion of the year to 30,000 units, already matching the total for all of 2024.
Another 10,000 units are expected by the end of the year, highlighting a strong acquisition pipeline.
Notable completions include Viridian by Meraas in Al Wasl, Palar residence by Emaar in Dubai Creek Harbour, and Ellington House by Ellington in Dubai Hills Estate.
New starts also remain buoyant, with more than 10,000 new units launched in Q3, of which 97 percent were rooms.
Luxury golf communities such as Jumeirah Golf Estates Phase 2 continue to attract strong investor interest.
Prime Residence Market
The Dubai Prime Reside Segment continued to perform strongly following record highs in Q2. About 1,500 transactions exceeded AED10M ($2.7m) in Q3, including 500 off-plan sales.
Villas dominate this segment, accounting for 73 percent of large transactions, reflecting the growing demand from wealthy sellers and the confidence of investors in the Dubai Economic Market (D33).
Rachael Kenerley, director of research, Savill Middle East, said: “Q3 2025 brought some record trading levels for Dubai highlighting its lack, 97 percent of the opening half of the quarter.
“The prime market, above AED10M, is driving this trend with villas dominating the transaction activity, accounting for 73 percent of the 700 percent of major transactions.”
Money feelings
Average capital prices for apartments remain stable at AED1.9M ($517,000), while the average villa price is above AED7M ($1.9M) – 24th February from 2024 average.
Average prices per square foot reached new highs for both categories, reflecting continued confidence and appetite for well-located, premium communities.
Savills also notes that affordable costs and lifestyles are driving renewed interest in established royal estates with strong amenities and educational institutions. Notably, 25 new schools were opened in September alone.
Outlook: Population growth slows long-term demand
Looking ahead, savills forecasts continued market tightening. By 2030, the population of Dubai will reach five million, and about 9,800 maliares will enter the UAE by 2025.
Andrew Cummings, head of Agency Middle East at Savills, said: “Dubai’s residential market continues to show remarkable depth and resilience, strong economic performance, population growth, and continued demand from both investors and end-users.
“The balance between affordability and lifestyle remains the city’s greatest strength. As the emirate grows towards five million people by 2030, we expect to see further diversification within the market, with established communities taking hold to bring in a number of new buyers.”
