Dubai, UAE – Dubai’s residential market continued its record-breaking run in Q3 2025, reflecting the emirate’s enduring appeal to global investors and end users alike. According to the latest Savills Dubai Residential Market Report – Q3 2025, transaction volumes once again exceeded the 50,000 threshold for the second consecutive quarter, underpinned by population growth, strong economic performance, and the influx of high-net-worth individuals.

Dubai Statistics Centre reported that the city’s population surpassed four million in September, while Oxford Economics forecasts UAE GDP growth at 4.9% for the year. Together with a tax-free ecosystem, ease of mortgage access, and relative affordability compared to other global gateway cities, these factors continue to drive homeownership among expatriates and sustain Dubai’s position as a long-term destination for investors.

Market Activity and Key Trends

Apartments dominated market activity, accounting for 86% of all transactions in Q3, up from 80% in Q2 and 75% in Q1. Off-plan sales remained the cornerstone of activity, accounting for 69% of all deals, with nearly 37,000 off-plan transactions recorded. The emirate’s ready market also maintained a stable pace with over 16,500 transactions, continuing the two-year average of around 17,500 per quarter.

Zone 6, covering key areas along the Al Khail corridor such as Jumeirah Village Circle, Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, accounted for 37% of total transaction volumes, reaffirming its position as the city’s most active zone. Zone 3, encompassing established neighbourhoods like Dubai Marina, Emirates Living, and Barsha, followed with 29%.

Supply Dynamics and New Launches

Approximately 8,500 residential units were added to Dubai’s housing stock in Q3, bringing YTD 2025 completions to nearly 30,000 units, matching the total for the whole of 2024. A further 10,000 units are expected by the end of the year, underscoring a robust supply pipeline. Notable completions include Viridian by Meraas in Al Wasl, Palace Residences by Emaar in Dubai Creek Harbour, and Ellington House by Ellington in Dubai Hills Estate.

New launches remained buoyant, with over 10,000 units introduced in Q3 2025, 97% of which were apartments. The continued popularity of luxury golf-course communities such as Jumeirah Golf Estates Phase 2 highlighted enduring demand in the high-end segment.

Prime Residential Market

Dubai’s prime residential segment maintained strong performance following record levels in Q2. Around 1,500 transactions exceeded AED 10 million in Q3, including 500 off-plan sales. Villas dominated this segment, accounting for 73% of prime transactions, driven by the growing population of affluent expatriates and ongoing confidence in Dubai’s luxury market under the Dubai Economic Agenda (D33).

"Q3 2025 has delivered further recording-breaking transaction levels for the Dubai residential market. Off-plan and apartment activity continued to strengthen their dominance, whilst a drop in villa transactions highlights the lack of new supply in this segment. 97% of launches in the quarter were for apartments. The prime market, over AED. 10 million, flips this trend with villas dominating transactional activity, accounting for 73% of prime transactions."

–  Rachael Kennerley, Director of Research – Savills Middle East

Values and Outlook

Average capital values for apartments remained broadly stable at AED 1.9 million, while the average ticket price for villas held steady above AED 7 million, up 24% from the 2024 average. Average rates per square foot reached new highs across both segments, reflecting continued confidence and rising demand for premium and well-connected communities.

Savills notes that affordability factors are driving renewed interest in established prime areas with strong amenities and education provisions, especially as 25 new private education institutions opened in September alone.

Looking ahead, the outlook remains optimistic. With Dubai’s population expected to reach 5 million by 2030 and nearly 9,800 millionaires projected to migrate to the UAE in 2025, demand for quality housing is expected to remain strong, supported by political stability, business-friendly regulation, and sustained global wealth inflows.

“Dubai’s residential market continues to demonstrate remarkable depth and resilience, underpinned by a strong economy, population growth, and continued demand from both investors and end users. The balance between affordability and lifestyle remains one of the city’s biggest strengths. As the emirate grows toward a population of five million by 2030, we expect to see further segmentation within the market, with established communities holding strong while emerging zones continue to deliver value for new buyers.” 

–  Andrew Cummings, Head of Residential Agency – Savills Middle East

To read the full report, visit https://dubai.savills.ae/research_articles/244449/382130-0