Dubai’s off-plan residential market recorded its highest level of activity to date, according to the Betterhomes Dubai Residential Real Estate FY 2025 report.
Off-plan transactions made up 65 per cent of total transaction volume during the year. In value terms, off-plan sales accounted for 53 per cent of the total residential market.
This was the third year in a row in which off-plan activity led Dubai’s residential sector, pointing to continued participation by investors and ongoing liquidity in launch-led communities, the report said.
Investor demand centres on AED500,000 to AED3 million homes
Investor-focused stock remained central to market activity. Studios, one-bedroom and two-bedroom apartments led both project launches and sales, reflecting segments associated with rental demand, resale activity and entry-level investment sizes.
Across the wider market, 72 per cent of all residential transactions fell within the AED500,000 to AED3 million bracket, indicating demand centred on income-generating housing rather than short-term trading.
Apartments formed the bulk of off-plan sales. During 2025, off-plan apartment transactions reached AED248 billion in value across 122,000 deals.
JVC, Business Bay and Dubai South lead off-plan absorption
This confirmed apartments as the most traded residential asset type in the city. Demand was concentrated in Jumeirah Village Circle (JVC), Business Bay and Dubai South, where new supply continued to be taken up.
“With 132,000 off-plan transactions in 2025, nearly two-thirds of all residential deals, buyers are showing greater discipline, focusing on pricing, location, and long-term demand rather than short-term gains. Liquidity is flowing into projects that make sense on fundamentals, signalling a more mature market,” Wassim Abdallah, Director & Head of Development Sales & Consultancy at betterhomes said in a statement.
Economic conditions supported the market throughout the year. Dubai’s population passed 4 million, adding to housing demand. UAE economic growth continued, while inflation remained contained.
Lower global interest rates and the dirham’s peg to the US dollar also supported Dubai’s position among regional and international investors seeking stability and longer-term returns.
Looking ahead, off-plan sales are expected to continue to lead the market as new homes reach completion in 2026 and 2027. Around 98,000 residential units are forecast to be delivered in 2026. As supply rises, attention is moving toward project standards, pricing discipline and informed buying decisions.
With more choice entering the market, data-led advice is expected to play a larger role in helping buyers assess opportunities in the next stage of Dubai’s residential cycle.
