Dubai's residential real estate market posted record activity in 2025, with residential transactions increasing 18 per cent year-on-year to 206,166 and total sales value rising 25.5 per cent to AED 547 billion, according to a report by Anaock Middle East.
The report said the increase was supported by broad-based demand across the residential market, with average prices rising 11.8 per cent to AED 1,900 per sq ft. Off-plan properties accounted for 72 per cent of total residential transactions during the year, compared with 69 per cent in 2024, while residential completions rose 36.3 per cent to 46,979 units.
The market also crossed 200,000 residential cash-sale transactions for the first time. At the same time, the average selling period declined to around 34 days from 46 days a year earlier, indicating faster absorption across residential projects.
Demand Remains Strong
According to the report, off-plan housing continued to drive market activity, reflecting sustained buyer interest in under-construction projects. Mortgage transactions also recorded stronger growth than overall sales, suggesting rising use of housing finance even before changes to the UAE's Golden Visa framework announced in February 2026.
Villa prices increased 15 per cent year-on-year, outpacing the 12 per cent rise recorded for apartments as limited supply supported price growth in the segment. Overall, Dubai's residential market has expanded nearly tenfold since 2020, with annual sales value increasing from AED 54 billion to AED 547 billion over the period.
The report attributed the market's performance to continued population growth, sustained international investor demand and Dubai's favourable tax regime. The city's population crossed 4.03 million in 2025, while gross residential rental yields remained stable at around 6.8 per cent, supporting investment activity.
Anaock said the market also remained resilient amid geopolitical tensions in early 2026. Although regional developments temporarily affected investor sentiment, physical residential prices witnessed only a limited correction before stabilising. Residential transactions worth AED 137.7 billion were recorded in the first quarter of 2026, up 19.2 per cent from the corresponding period last year. |
