Despite the summer slowdown, Dubai’s property market proved its resilience in August 2025, recording strong activity across both sales and rentals. Investors and end-users continue to show confidence in the emirate, reinforcing Dubai’s reputation as one of the world’s most attractive real estate destinations.
Steady Sales Performance
According to market data, over 17,700 property transactions took place in August. While this reflected a slight month-on-month dip of 5.9%, activity remained 10% higher compared to August 2024 — signaling long-term growth.
- Total transaction value: AED 42 billion (down from July but solid year-on-year).
- Average sales price per sq. ft.: AED 1,932 — a 2.1% monthly increase.
Off-Plan Developments Lead the Market
Off-plan projects continued to dominate, making up 73% of total transactions. Major developers such as Binghatti, Emaar, and Sobha drove much of this momentum.
When it comes to preferences:
- Apartments: One-bedroom units were the most popular.
- Villas/Townhouses: Four-bedroom homes accounted for almost half of all villa sales (46.3%).
Buyer profiles remained well-balanced, with 59% investors and 41% end-users. Interestingly, mortgage-backed purchases are now outpacing cash transactions, pointing to a more mature financing landscape.
Rental Market Gains Momentum
The rental segment also had a strong August, with 41,500 contracts registered — up 5.7% from July.
- New vs. Renewals: About 44% were new leases, the rest renewals.
- Rental price trends:
- Villas in Jumeirah averaged AED 539,000 annually (+4.2%).
- Apartments in Mirdif averaged AED 88,000 annually (+5.5%).
- Tenant demand: Enquiries rose 38%, with apartments leading demand, followed by townhouses.
Flexible payment options remain a key attraction. One-cheque and four-cheque payment plans were the most common, making up about 30% and 32% of agreements.
Most In-Demand Communities
Apartments: Dubai Marina, Business Bay, and Jumeirah Village Circle topped buyer demand.
Villas/Townhouses: Arabian Ranches, Dubai Hills Estate, and Jumeirah Golf Estates were the most sought-after.
Outlook: Growth with More Supply Ahead
Dubai’s property market continues to expand, supported by strong population growth — the city now counts over 4 million residents. The Dubai Land Department reported property sales worth AED 51 billion in August, with an 8.7% annual rise in transactions.
However, supply is catching up. More than 70,000 new residential units are expected for delivery by the end of 2025, which could ease pressure on prices. Even so, double-digit annual growth in property values and some of the highest rental yields globally keep Dubai firmly on investors’ radars.
Original Source: Khaleej Times