Dubai’s residential real estate sector finished 2025 with its strongest off-plan performance on record, according to the Betterhomes Dubai Residential Real Estate FY 2025 report published by Arabian Business. Off-plan properties dominated the market, accounting for 65 % of total residential transaction volume and 53 % of overall market value, underscoring a major shift toward launch-led communities and investor-aligned products.
Off-Plan Sales Set New Benchmarks
The 2025 data shows that off-plan sales didn’t just grow—they became the central force in Dubai’s housing market. This marked the third consecutive year that off-plan transactions led the residential sector, highlighting sustained confidence from both local and international buyers.
Key data points from the report include:
• Off-plan transactions made up 65 % of residential transaction volume in 2025.
• Off-plan sales accounted for 53 % of total market value.
• Around 72 % of all market transactions were in the AED 500,000 to AED 3 million price range.
• Off-plan apartments generated AED 248 billion in sales value from 122,000 transactions.
These numbers point to deep, genuine demand for homes that fit real housing needs rather than short-term speculation. The dominance of studio, one-, and two-bedroom units reflects strong rental appeal, resale liquidity, and accessibility for a broad buyer base.
Which Areas Drove Demand?
The off-plan boom wasn’t limited to one or two pockets. Demand was concentrated in communities that combine lifestyle appeal with infrastructure growth:
• Jumeirah Village Circle (JVC)
• Business Bay
• Dubai South
These locations saw new supply absorbed quickly, highlighting their appeal for residents and investors alike.
Investor Behavior Signals Market Maturity
Wassim Abdallah, Director and Head of Development Sales & Consultancy at Betterhomes, emphasized that buyers are making disciplined decisions.
“With 132,000 off-plan transactions in 2025, nearly two-thirds of all residential deals, buyers are focusing on pricing, location, and long-term demand rather than short-term gains,” he said.
This shift toward fundamentals-based decision-making—such as rental demand, resale prospects, and community growth—is a sign of a maturing Dubai market, rather than one driven by speculation.
Broader Market Factors Supporting Growth
Multiple underlying factors helped sustain this performance:
• Dubai’s population surpassed 4 million, boosting long-term housing demand.
• The UAE’s economic growth remained resilient throughout 2025, helping support investor confidence.
• Easing global interest rates and the dirham’s peg to the US dollar enhanced Dubai’s stability and appeal for international capital.
What’s Next for 2026 and Beyond?
Looking ahead, the off-plan segment is expected to remain a market leader. According to forecasts, close to 98,000 residential units are expected to be completed in 2026, offering more options for buyers and increasing market depth.
As supply grows, quality, pricing discipline, and data-led decision-making will become even more important for buyers. The market is shifting from sheer volume to smart selection of units and locations that promise continuous demand and sustainable value.
Conclusion
Dubai’s residential market isn’t just growing. It is evolving. The 2025 performance confirms that off-plan homes have become the backbone of the market, supported by disciplined buyer behavior, strong demand fundamentals, and a robust economic foundation. As 2026 unfolds, buye
