The property market in Dubai continues its excellent performance. Villa and townhouse prices reach an all-time high in the third quarter of 2025. Average transaction prices for the category increased to Dh8.7 million - a 21 per cent annual growth - due to ultra-high-net-worth buyers looking at the emirate's most desirable neighborhoods.

Strong Market Performance

Q3 property transactions reached Dh135.6 billion nine per cent lower quarterly but 16 per cent higher year-on-year. Total transactions in the first nine months of 2025 were Dh498.8 billion are the evidence of sustained investor confidence. The overall market experienced mean property price growth to Dh5.1 million is a 28 per cent increase yearly.

Luxury transactions are indicative of increased demand, with villa sales increasing by 28% more as more families make Dubai their home.

Supply Woes Arise

The off-plan market strengthened as completions fell 12% and launches dropped 30% year-on-year. With about 600 new residents arriving daily, limited supply may push prices higher for high-end villas.

Dubai’s tax-free status and golden visa program attract global investors, with stability and luxury living drawing more millionaires and entrepreneurs.

Rental Market Booms

Demand for rentals caught up with sales, with transaction volumes increasing by 15 per cent in Q3 and new contracts increasing by 31 per cent. Allsopp & Allsopp registered a 40 per cent quarterly increase in rental transactions on the back of expatriate inflow and strengthening landlord yields.

Outlook

Experts remain confident in Dubai’s property market, with strong demand, solid fundamentals, and a stable regulatory environment keeping the city a prime destination for global investors.