Dubai property market hits record $149bn in 2025 as demand and prices strengthen

Dubai real estate hit record $149bn in 2025 as demand, liquidity and prices advanced, with off-plan and investor activity leading

Strong Market Fundamentals Driving Growth

The performance highlights a market supported by robust economic and demographic fundamentals. Dubai’s economy continued to grow steadily in 2025, while inflation remained low, creating a stable environment for property activity. Population growth and rising demand for housing — particularly from families and overseas buyers — further reinforced market strength.

Demand Across Segments and Price Growth

• Apartments dominated activity, with studios and one- to two-bedroom units accounting for the bulk of sales, reflecting deep demand in affordable and mid-market segments.
• Villas and townhouses also saw strong performance, buoyed by lifestyle-led preferences and appeal among long-term residents.
• Despite a growing supply pipeline, average sale prices increased by around 12 % year-on-year, demonstrating the market’s ability to absorb new listings without price erosion.

Leasing Activity and Mortgage Growth

Leasing transactions surged by over 60 %, driven chiefly by rising family-led demand, while rental rates remained stable. This suggests that the rental market growth reflected genuine housing needs rather than speculative upward pressure on rents.

Mortgage-backed purchases also increased, accounting for more than half of all deals — a sign of growing buyer confidence and accessibility.

Investor Confidence and Market Resilience

Investor participation remained strong, with over half of sales attributed to investment buyers for the fourth consecutive year. Foreign interest continued from key markets including India and the United Kingdom. Prime luxury homes also saw notable price gains, with high-end average prices up significantly.

Outlook

The record performance of 2025 illustrates that Dubai’s property market is not only active but structurally resilient, supported by economic growth, stable pricing, and diverse demand across both end-users and investors. With broad market participation and continued interest from both domestic and international buyers, Dubai is positioned for further strength entering 2026.

Stay tuned as this line continues to rise from blueprint to bustling reality — and get ready to explore Dubai with even greater ease in the years ahead!

News Source https://www.arabianbusiness.com/industries/real-estate/dubai-property-market-hits-record-149bn-in-2025-as-demand-and-prices-strengthen

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