The bygone year was instrumental for Dubai’s growing real estate sector as it defied predictions of a slow down, instead achieving AED 917 billion in real estate transactions in 2025 by recording over 270,000 transactions. It also registered a 20 per cent year-on-year growth in 2025.
The record annual tally represented an 18.7 per cent growth in transaction volume and a 30.9 per cent jump in sales value compared with 2024, according to official data.
The stunning performance dispelled predictions by a global ratings agency in 2024 that Dubai property prices could fall up to 15 per cent across 2025 due to a surge in supply. By mid-2025, Fitch had predicted that Dubai's red-hot property market was poised for a moderate correction and revised its anticipated 15 per cent price drop.
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However, in 2025, Dubai’s real estate sector saw strong activity, with 3.11 million transactions, including sales, leases, and all real estate services, up 7 per cent from 2024.
In 2025, Dubai’s real estate sector saw strong activity, with 3.11 million transactions, including sales, leases, and all real estate services, up 7 per cent from 2024. This highlights growing demand, a larger base of participants, and the sector’s key role in the economy.
As per the data, the investor base also continued to expand, reaching around 193.1 thousand, an increase of 24 per cent, including 129.6 thousand new investors. This represents 23 per cent growth. Resident investors accounted for 56.6 per cent of the total.
The top 10 areas that witnessed the highest real estate transactions were Al Barsha South Fourth, Business Bay, Wadi Al Safa 5, Dubai Airport City, Dubai Marina, Jebel Ali First, Al Yelayiss 1, Wadi Al Safa 3, Dubai Investment Park Second, and Al Thanyah Fifth. This performance reflects the diversity of investment opportunities and the balanced geographical growth across the emirate.
This highlights growing demand, a larger base of participants, and the sector’s key role in the economy, according to local reports. Experts also attribute population growth, initiatives like the Golden Visa, which promote long-term residency initiatives, infrastructure development, and strong economic fundamentals, as reasons for the growth.
The local sector is expected to reach AED 486.2 billion by 2030 at a Compounded Annual Growth Rate of 8.06%, according to a study by Research and Markets, a market insight and analysis firm. They attribute the development to increased adoption of technologies such as AI, blockchain, virtual reality (VR), and augmented reality (AR).