Business

Dubai’s property market is set to reach $185.5bn in sales as population increases to a record by 2025.

Dubai’s real estate market is expected to generate AED681bn ($185.5bn) in sales by 2025, underpinning one of the most volatile years in the sector’s history.

Record transaction rates, accelerating population growth and streamlined delivery have combined to push the market into a new phase of expansion – increasingly defined by permanent residents rather than short-term investors.

According to Provident Estate’s Market Overview 2025, Dubai recorded 213,700 residential transactions last year, representing an annual increase of 6.9 percent. Average sales prices rose by 7.6 percent, underscoring the upward trend in property driven by migration driven by lifestyle and longevity, rather than speculative profit.

Loai Al Fakir, CEO of Provident Estate, said: “The real estate story in Dubai is no longer just about opportunity – it’s about permanence. People are not just investing here; they are building their future here. That change has redefined demand, reshaped public priorities, and positioned Dubai as a strong real estate market globally.”

Places to live in Dubai 2025

Dubai crossed the population record in 2025, surpassing 4.03 million citizens. More than 208,000 new arrivals chose the city for work, lifestyle and long-term residence during the year, and more than 1.35m people have moved to the emirate since 2014.

This continued inflow has created a strong demand base that continues to reshape housing needs across the market.

Consumer demographics clearly point to the dominance of the end user. The 31-45 age group created most of the jobs, the 36-40 segment held the strongest share – signaling purchase decisions driven by career growth, family planning and long-term stability.

Apartments remain at the heart of Dubai’s activity, with areas including Jumeirah Village Circle, Business Bay and Dubai Marina accounting for the majority of demand.

One-bedroom units have led performance in both the secondary and unplanned markets, reflecting the needs of first-time residents and young professionals establishing themselves in the city.

Villas, on the other hand, continued to strengthen their long-term commitment to the market. Four-bedroom properties dominated both finished and unplanned home sales, with communities such as Wadi Al Safa, Al Hebiah Fifth and Dubai South attracting buyers for families focused on long-term community living.

Dubai housing offers

Developers have maintained an estimated delivery schedule, with 96,500 residential units expected to be delivered by 2026. The offering focuses on all organized and emerging organized communities, including:

  • Dubai Creek Harbor
  • Dubai Hills Estate
  • Damac Lagoons
  • Arabian Houses 3
  • Arjan
  • Business Bay

The forward pipeline remains under control, with 84,979 units expected in 2027 and 45,480 units in 2028, reinforcing the alignment between real residential demand and market supply.

Al Fakir said: “2025 has confirmed that Dubai is no longer in a price cycle – it is in the middle of a population cycle. Demand is based on resident growth, resale continues to reflect people’s preferences, and off-plan remains funded by strategic communities instead of speculation.

“Since the population momentum shows no signs of slowing down, we basically set 2026 as the year of the expansion of the property market”.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button