- April 22, 2026
- 4
- Real Estate
By Kiana Jehangir
Dubai’s residential real estate market reached remarkable heights in the third quarter of 2025, driven predominantly by off-plan transactions. According to a market report by Cavendish Maxwell, overall residential transactions soared to 55,300 deals, reflecting a year-on-year increase of 17.1 %. Of these, off-plan sales comprised a dominant 76 % of total market activity, with approximately 42,000 deals—up 23.6 % YoY and 18.1 % quarter-on-quarter. Importantly, initial developer sales made up 93.9 % of off-plan activity, rising from 90.3 % a year earlier, while off-plan resales fell to just 6.1 %.
Meanwhile, ready-property sales remained comparatively muted: 13,300 transactions, down 5.4 % on the prior quarter and up only 0.6 % annually. Apartment-led transactions dominated both off-plan and ready markets, with 89.4 % of off-plan volume in apartments—villas and townhouses lagging in off-plan share, though their portion in ready transactions edged up.
On the pricing front, residential sales prices climbed 4.5 % q-on-q and 16.1 % y-on-y, underpinned by sustained demand. In Q3, new completions amounted to around 9,400 units, significantly below the projected 22,800—i.e., only a 41.3 % materialisation rate. For the first nine months of the year, total completions reached 28,100 units, up 6 % year-on-year. Construction timelines are shortening: average delivery time fell from 1,340 days in 2023 to 880 days in 2025.
Looking ahead, the supply pipeline remains substantial: 48,200 units are scheduled for Q4, and 366,000 units projected through 2028, with the bulk due in 2026–2027. Despite concerns of oversupply, the report frames this as “healthy normalisation” rather than imbalance.
Fundamentals underpinning the rally remain strong: Dubai’s economy is expanding, GDP growth forecasts have been revised upwards, and the population is projected to approach five million by 2030. Investor-friendly regulations, infrastructure investment, and global interest continue to support the emirate’s real estate outlook.
