Dubai’s residential property market recorded more than 200,000 transactions worth AED541.5 billion in 2025, according to a report by Cavendish Maxwell .
Sales increased by almost 19 per cent compared with 2024, while transaction values rose by 27 per cent, the company said in its 2025 Dubai Residential Market Performance Report, released on February 10 at its Dubai Real Estate Market Update event .
The off-plan segment accounted for 73 per cent of sales in 2025, up from 69 per cent in 2024. Off-plan transactions reached AED395.7 billion, representing a 32 per cent increase in value year-on-year .
Dubai construction timelines cut by 37% since 2021
Around 40,400 new residential units were delivered in 2025, compared with earlier projections of 82,600. For 2026, 110,500 units are forecast for delivery, although historical completion rates indicate actual figures may range between 33,000 and 50,000 .
Construction timelines have fallen by nearly 37 per cent since 2021, as developers accelerate work to trigger post-handover payments. In 2025, average completion time stood at 942 days, compared with 1,494 days five years ago .
“After another record-breaking year, Dubai’s residential market is beginning to show signs of normalisation, with rising supply and slowing price growth pointing towards more balanced conditions in 2026. Performance will increasingly depend on absorption rates, buyer sentiment and the market’s ability to digest upcoming completions,” Ronan Arthur, MRICS, Director, Head of Residential Valuation at Cavendish Maxwell said in a statement.
Off-Plan sales account for 73% of Dubai home transactions in 2025
More than 83 per cent of off-plan sales were apartments, up from 80 per cent in 2024. Apartments accounted for nearly 88 per cent of new project launches.
The market share of villas and townhouses declined from 19.3 per cent in 2024 to 16.7 per cent in 2025, despite growth in total sales numbers .
In the ready property segment, apartments represented nearly 82 per cent of transactions. A total of 44,000 ready apartments were sold in 2025, up from 42,400 in 2024. Ready townhouse and villa sales reached 6,400 and 3,600 respectively .
Jumeirah Village Circle and Business Bay lead Dubai sales charts
Jumeirah Village Circle and Business Bay ranked first and second for both off-plan and ready apartment transactions in 2025.
In the off-plan apartment segment, 12,261 units were sold at Jumeirah Village Circle and 8,626 at Business Bay. Dubai South recorded 6,757 sales, followed by Dubai Residences Complex with 6,657 and Dubai Science Park with 5,155.
In the ready apartment segment, 5,301 units were sold at Jumeirah Village Circle and 3,247 at Business Bay. Dubai Marina recorded 2,526 transactions, Downtown Dubai 2,100 and International City 1,832.
For off-plan villas and townhouses, DAMAC Islands recorded 4,845 sales, followed by The Valley with 2,936 and Grand Polo Club and Resort with 2,521. Dubai South and DAMAC Hills 2 completed the top five. In the ready segment, DAMAC Hills 2 led with 1,066 sales, followed by Al Furjan, Dubai South, The Springs and Town Square.
Sales of homes priced between AED20 million and AED50 million increased by more than 47 per cent year-on-year to 2,500 transactions, with more than 70 per cent of these off-plan.
Ultra-luxury homes priced at AED50 million and above recorded nearly AED28 billion in sales across 302 properties, reflecting a 54 per cent increase in value and a 32 per cent rise in volume.
Residential sale prices rose by an average of 12.1 per cent in 2025 to AED1,673 per square foot, compared with growth rates of 16.5 per cent in 2024 and 17.6 per cent in 2023.
Rental costs increased by an average of 11 per cent to just under AED76 per square foot. More than 590,000 rental contracts were registered, with renewals accounting for nearly two-thirds.
Gross rental yields averaged 7 per cent for apartments, reaching 8.9 per cent in International City and 8.3 per cent in Downtown Jebel Ali and Dubai Production City.
DAMAC Hills 2, Dubai Silicon Oasis and Dubai Studio City recorded 8.2 per cent. Villas and townhouses averaged 4.8 per cent, with yields approaching 7 per cent in Al Barari and 6 per cent in Dubai Industrial City.
174,900 new units launched in Dubai as supply pipeline expands
A total of 685 new projects comprising 174,900 units were launched in 2025, equivalent to 479 units per day. Apartments accounted for nearly 88 per cent of launches.
For 2026, around 110,500 units are scheduled for delivery, with most completions expected in the fourth quarter. Approximately one third of these units are at less than 25 per cent construction completion, while one quarter have reached at least 75 per cent completion.
A further 133,300 units are scheduled for 2027 and 101,500 in 2028. Apartments represent more than 84 per cent of this pipeline, with Jumeirah Village Circle, Dubai South, Business Bay, Dubai Residential Complex and DAMAC Lagoons accounting for nearly a third of projected supply.
