Dubai’s property market continues its record-breaking streak with over 50,000 homes sold in Q3 2025, while office rents jumped 35% year-on-year, according to data from the Dubai Land Department (DLD) and CBRE. The surge reflects shifting mortgage trends across income groups, as mid-income buyers gain ground amid sustained luxury demand. For investors and residents alike, these figures highlight Dubai’s evolving real estate landscape—one increasingly defined by diverse affordability and long-term end-user confidence.
Q3 by the Numbers
| Metric | Q3 2025 | YoY Change |
| Residential Sales | 50,200 units | +18% |
| Transaction Value | AED 190 billion | +22% |
| Office Rent Growth | +35% | +12% |
| Occupancy Rate | 92% | +5% |
Key Takeaways:
- Mortgage approvals among middle-income buyers rose by nearly 27% YoY, signaling growing affordability.
- Off-plan sales continued to dominate, representing 62% of total transactions.
- Prime office spaces in Business Bay and DIFC are witnessing near-full occupancy.
Residential Market: Sales, Prices, and Hot Spots
Dubai’s residential market remains robust, powered by both off-plan projects and ready-to-move properties. While luxury areas such as Palm Jumeirah and Downtown continue to command record prices, affordable communities are seeing the fastest sales growth—driven by first-time homeowners and expatriate professionals securing mortgages under competitive interest rates.
| Community | Avg Price/Sq.ft | YoY Change |
| Business Bay | AED 2,300 | +15% |
| Dubai Marina | AED 2,700 | +10% |
| Jumeirah Village Circle (JVC) | AED 1,200 | +18% |
| Dubai Hills Estate | AED 2,100 | +12% |
| Palm Jumeirah | AED 4,200 | +8% |
Trends:
- Mid-income buyers are increasingly purchasing 1- and 2-bedroom apartments in JVC, Arjan, and Dubailand.
- Luxury villas remain popular among high-net-worth individuals, especially Europeans and GCC investors.
- Off-plan properties now account for the majority of mortgage-backed transactions.
Commercial/Office Market: Rents, Demand, and Supply
Dubai’s commercial segment continues to tighten, with Grade A office spaces seeing limited availability and strong demand from global corporates and fintech firms. The surge in rents underscores Dubai’s position as a regional business hub, further boosted by corporate migration from Europe and Asia.
| Grade | Avg Rent/Sq.ft | Occupancy Rate |
| Grade A | AED 275 | 95% |
| Grade B | AED 180 | 88% |
The office market’s momentum is driven by financial services, AI startups, and consulting firms establishing regional headquarters. Despite rent hikes, developers remain cautious about oversupplying, focusing instead on premium sustainable offices.
Supply Pipeline & Developer Activity
Dubai’s construction momentum shows no signs of slowing, with several mega-projects and luxury developments expanding the city’s skyline.
- Emaar Properties launched The Oasis – Phase 2, valued at AED 15 billion.
- Nakheel revived Palm Jebel Ali, adding 20,000+ villas and premium waterfront plots.
- Sobha Realty and DAMAC continue expanding along the Dubai Water Canal.
- Imtiaz Developments focusing on mid-luxury residential towers catering to mortgage-backed buyers.
Demand Drivers
- Visa reforms (Golden and 10-year Residency) are encouraging long-term settlement.
- Population growth expected to cross 3.8 million by 2026, sustaining end-user demand.
- Tourism rebound with record 15M+ visitors in 2025 fueling rental markets.
- Foreign investor confidence remains high amid global capital inflow diversification.
- Strong job creation in tech, finance, and hospitality sectors supports stable mortgage growth.
Risks & What to Watch
- Potential oversupply in certain mid-luxury zones.
- Rising interest rates could slightly cool mortgage borrowing in 2026.
- Geopolitical uncertainty or global slowdown may impact investor sentiment.
- Developers may face construction delays amid supply chain constraints.
Expert Quotes / Attribution
“The sustained mortgage demand across income tiers reflects Dubai’s transition from a purely speculative to a more end-user-led market,” said Faisal Durrani, Partner and Head of Research, Middle East at Knight Frank.
“While luxury continues to headline, the real momentum now lies within the upper-middle-income bracket, who see Dubai as a long-term living and investment destination,” noted Taimur Khan, Head of Research at CBRE.
Data Notes & Methodology
All figures are based on Dubai Land Department (DLD) transaction data and CBRE Market Monitor (Q3 2025). Residential metrics include both off-plan and secondary sales. Office rents are derived from CBRE’s quarterly lease index. Price data rounded to nearest AED 100 for consistency.
