Dubai Residential Market Review – December 2025

Villas led monthly growth with a 23% rise in value to AED 15.8 billion, while commercial sales climbed to AED 2.7 billion. Off-plan activity remained dominant, accounting for nearly three-quarters of residential transactions. For the full year, Dubai recorded AED 686.8 billion in total sales value — a 32.7% increase over 2024 — underscoring the strongest annual performance in the emirate’s property market to date.

General Market 

Dubai wrapped up December with 18,680 real estate deals totalling AED 63.4 billion. That's a slight dip from Novemberʼs tally, with volume easing by 1.8% and value down 2.16%. On a year-over year basis, activity remained well above 2024, with transaction value up 49% and volume higher by 24%. The monthʼs softer figures reflect typical holiday-season slowdowns, though momentum held in key sectors such as villas and commercial.

Apartments 

Apartments led in activity once again, closing December with 15,177 transactions worth AED 29.5 billion. This marked a pullback from November, with value slipping 8.1 percent and volumes down modestly. Demand remained concentrated in well-known mid market areas such as JVC, Business Bay, and International City, while premium zones like Downtown and Dubai Marina drew steady interest for ready stock. Developers continued to push launches through year-end, buoyed by flexible installment schemes and persistent investor appetite.

Villa/Townhouse 

Villa and townhouse sales gained traction in December, notching 2,419 transactions and a total value of AED 15.8 billion. That's a solid month-on-month rise of over 23% in value, pointing to strong uptake in larger homes across family-focused neighbourhoods. Communities such as Dubai Hills Estate, Damac Hills 2, and Tilal Al Ghaf saw continued pull, driven by buyers prioritising lifestyle space and long-term holding potential. The shortage of completed units kept prices firm and competition tight.

Commercial 

Commercial property deals reached 732 in December, up from 650 the month prior. Value climbed to AED 2.7 billion, a 17.4% increase. Offices in Business Bay, Barsha Heights, and DIFCproximate buildings remained active as occupier demand held steady. Retail and mixed- use assets saw renewed investor focus, particularly in touristheavy zones where footfall surged during the peak travel season.

Land 

Land sales closed December with 352 transactions worth AED 15.4 billion. While that's a slight drop in both volume and value from November, developer activity remained strong in master-planned zones and infrastructure-linked plots. Buyers continued targeting sites with long-term build potential, especially in growth corridors where large scale communities are being phased out in stages.

Off-Plan 

New project sales stayed in the driverʼs seat for December. Off-plan homes outpaced ready sales in both count and value, fuelled by ongoing project launches and investor preference for structured payment terms. Popularity stayed concentrated in JVC, Dubai Maritime City, and JVT, with new inventory absorbed quickly in phased releases. The resale market saw healthy demand, but tight inventory and pricing friction limited the pace of ready transactions, especially in top-tier areas.

Rental Transactions 

December saw a total of 35,068 rental contracts in Dubai, a mild 2.56% dip from Novemberʼs volume. This slight slowdown was most pronounced in the residential segment. Apartment lease registrations fell to 18,900, down 7.57% month-on-month, and villa rentals dropped to 2,068, down 10.09%. 

The end-of-year easing suggests a typical seasonal cooldown and a market reaching equilibrium after the frenetic rental growth earlier in 2025. Many tenants appear to be renewing in place rather than relocating during the holidays, especially after a year of steep rent hikes.

Commercial rentals, however, bucked the trend, climbing to 14,100 new leases, up 6.48% from November, as companies secured spaces ahead of the new year. Overall, occupancy levels remained high, underpinned by Dubaiʼs continued population growth and strong job creation, even as rent increases started to moderate in the face of abundant new supply.

Commercial Leasing Breakdown 

Easing activity within the commercial sector presented a mixed picture in December. Retail shops and showrooms saw 1,829 contracts, essentially flat, representing a 0.87% decline compared to the previous month, suggesting steady demand from consumer facing businesses. Office leases totalled 7,641, a modest 3.00% drop month-on-month, as many firms had already expanded earlier in the year and took a breather in December. 

Industrial property rentals, such as warehouses and factories, recorded 274 contracts, about 3.86% lower than November, reflecting a slight pause after prior growth in the logistics sector. In stark contrast, the “other” commercial category surged to 4,389 leases, a 33.77% increase. This spike likely came from niche segments such as storage facilities, staff accommodation, and other special-use premises witnessing year-end uptake. The strong performance of these non-traditional commercial rentals helped offset softer office and industrial activity, keeping overall commercial leasing momentum positive as the year closed.

Apartments 

Apartment sales led Dubaiʼs property market in December, with 15,177 units sold and a total value of AED 29.5 billion, down 8.1% from November as activity normalized after a very strong month. Demand stayed resilient across both off-plan and ready units, driven by investors attracted to rental yields and first-time buyers moving from renting to owning. New completions toward year-end increased choice and eased price pressure, while areas like Jumeirah Village Circle and Dubai Marina continued to see strong activity. Overall, the apartment segment closed the year with healthy volumes, supported by steady demand and a growing supply pipeline.

Villas & Townhouses

Dubaiʼs villa and townhouse market finished 2025 on a robust note. In December, 2,419 villas and townhouses were sold, with a total value of AED 15.8 billion, a 23.4% jump in value from November that stands out as the strongest growth among property segments. This surge was fuelled by unabated appetite for larger homes and a number of high-value deals in prime villa enclaves. Throughout the month, both affluent international buyers and long term Dubai residents sought spacious properties, whether for end use or as investments in an undersupplied high-end rental market. New supply in this segment remains limited, which has kept competition for available villas intense. 

Notably, several new handovers in suburban master communities, such as phases in Arabian Ranches 3 and Dubai South, were met with immediate buyer uptake, indicating how quickly family-sized homes are absorbed. From luxury beachfront villas to affordable townhouses in emerging neighbourhoods, demand far outstripped supply. This dynamic maintained upward pressure on prices and ensured the villa and townhouse segment ended the year with momentum, underlining buyersʼ emphasis on lifestyle and space post-pandemic.

Commercial Properties

Commercial property sales saw a notable uptick in December, highlighting confidence in the emirateʼs business environment. A total of 732 commercial units, including offices, retail shops, warehouses, and other business premises, were sold, totalling around AED 2.7 billion in value, up 17.4% compared to November. This increase was underpinned by end-of-year investments from both companies and private investors. Many businesses opted to purchase office space, especially in key business districts, amid a thriving economy and expectations of further growth in 2026. Retail units in new residential communities also attracted buyers, as entrepreneurs and investors capitalised on Dubaiʼs booming consumer spending and tourism sectors. 

Meanwhile, logistics and industrial assets continued to trade steadily, supported by the emirateʼs role as a regional trade hub. With solid rental yields on offer and economic diversification creating new enterprise opportunities, the commercial real estate segment enjoyed heightened interest. The December spike in commercial sales transactions capped off a year in which owning business space became an increasingly attractive proposition alongside leasing.

Land Plots 

Land and plot transactions cooled slightly in December after an exceptionally busy November for land deals. There were 352 land sales recorded, yielding a total of AED 15.4 billion, about 12.5% lower in value than the previous month. The decline is largely attributable to Novemberʼs outlier mega-deals, including record-price transactions, that temporarily inflated totals. In contrast, Decemberʼs land market, while quieter, still reflected robust underlying demand. Developers and strategic investors remained active in acquiring plots for future projects, encouraged by Dubaiʼs long term growth plans and infrastructure investments. 

Notably, emerging development zones, such as parts of Al Yalayis in Dubai South and newly unveiled island communities, saw significant interest as stakeholders positioned themselves for the next wave of construction. Even in established areas, any available plots for redevelopment continued to command a premium due to scarce supply. Overall, the land segmentʼs slight month-on-month dip belies its strong fundamentals. Throughout 2025, land investments have been driven by confidence in Dubaiʼs expansion, and December kept that trend intact, albeit at a more measured pace.

December closed with AED 63.4 billion in real estate sales spread across 18,680 transactions. That marks a modest dip of 2.16% in value from Novemberʼs AED 64.8 billion, while volumes eased by 1.8%. Compared to December 2024, value surged 49% from AED 42.6 billion, and volume rose 24% from 15,079 deals. 

Villas were the standout in December, rising to AED 15.8 billion in value, up 23.4% from the previous month. Commercial sales also advanced, reaching AED 2.7 billion, a 17.4% gain. Apartments saw AED 29.5 billion in sales, down 8.1% month-on-month, while land activity softened to AED 15.4 billion after a strong November. 

Cumulatively, 2025 wrapped up with AED 686.8 billion in sales value, well ahead of AED 517.6 billion in 2024, posting a full-year gain of 32.7%.

Dubai posted 18,680 property deals in December, slightly below Novemberʼs 19,024 transactions, but still up 24% year-on-year from 15,079. Despite the slight monthly pullback, total sales value held near record highs, lifted by strong villa and commercial activity. Land contributed AED 15.4 bi lion, down from November but still a significant portion of value. 

Apartments continued to lead in volume with 15,177 deals, though value eased. Vi las saw higher activity at 2,419 deals, while commercial deals climbed to 732. Buyer momentum remained healthy heading into year-end, supported by off-plan strength, demand for larger homes, and consistent absorption in core districts.

Rental activity edged down in December as the market entered its usual year-end cooldown. Dubai recorded 35,068 new rental contracts, a 2.56% decline from November. Apartments logged 18,900 leases, down 7.57%, as many tenants opted to renew existing contracts rather than relocate. Villa rentals dropped to 2,068, a 10.09% fall, in line with tighter supply of quality family homes and less movement during the holiday period. 

Commercial leases, however, rose to 14,100, up 6.48%, reflecting strong business sentiment and firms locking in premises ahead of 2026. While the residential rental market showed signs of seasonal slowing, demand remained resilient overall, with average lease rates staying firm in key locations.

The commercial leasing segment showed solid performance in December, closing the year on a positive note. Shops and showrooms were mostly steady with 1,829 new leases, just 0.87% below November. Offices saw 7,641 contracts, a slight 3.00% dip, likely due to delayed signings during the holiday window. Industrial leases ticked down marginally to 274, off 3.86%, while the “other” commercial uses category jumped sharply to 4,389, a 33.77% gain. 

This spike suggests rising demand for flexible-use assets such as warehouses, staff housing, and storage units. The shift in mix highlights a market adjusting to evolving operational needs, with demand focused on well-situated, cost-efficient, and ready-to move-in commercial spaces.

Off-plan continued to dominate in December, maintaining its lead across residential activity. Out of 17,596 residential transactions, 13,076 were off-plan and 4,520 were ready, putting off-plan at nearly three-quarters of the total market. In value terms, off plan reached AED 33.1 bi lion compared to AED 12.2 bi lion for ready homes, underscoring sustained buyer confidence in new project launches and flexible payment structures.

Apartments accounted for most of the activity, with 11,399 off-plan apartment sales totalling AED 22.9 billion, while 3,778 ready apartments brought in AED 6.6 billion. The villa segment also leaned off-plan, with 1,677 transactions worth AED 10.3 billion, compared to 742 ready villa sales generating AED 5.6 billion. Developers continued to attract both investors and end users with well-timed launches in active corridors, while the resale market remained capped by tight inventory and firmer pricing.

The split between off-plan and ready remained wide in December, with buyers still favouring new launches for choice, pricing, and staggered payment terms. Of the 17,596 residential transactions, off-plan held 13,076 sales versus 4,520 in the secondary market. Off-plan value climbed to AED 33.1 billion, making up more than 73% of total residential spend, while ready sales reached AED 12.2 billion. 

Apartments led volume with 11,399 off-plan units sold for AED 22.9 billion, while ready apartments added 3,778 deals and AED 6.6 billion. Villas also posted solid off-plan numbers at 1,677 transactions worth AED 10.3 billion, compared to 742 ready villa deals totalling AED 5.6 billion. The trend reflects continued absorption in mid-tier master plans and strong demand in launchheavy areas, alongside steady activity in mature communities where stock remains limited and pricing is holding firm.

Top 5 Performing Areas — Off-Plan Sales

Off-plan sales kept a strong pace to close the year. Majan led with 1,466 transactions, followed by DIP Second with 1,285, JVC with 996, Business Bay with 676, and Dubailand Residence with 531. The line-up shows demand holding across master-planned communities with phased launches, especially in areas offering accessible pricing and flexible terms. Buyer activity remains concentrated where developers release inventory in manageable tranches and maintain payment schedule flexibility.

Top 5 Performing Areas — Secondary Sales

JVC once again topped the resale charts with 490 deals, reinforcing its position as a high-turnover mid-market hub. Business Bay followed with 295 transactions, then Dubai Marina with 181, Downtown with 175, and Dubai South with 136. Liquidity stayed consistent in mature areas with strong rental track records and a steady stream of end users, investors, and relocators targeting ready inventory in well-connected buildings.

Top 5 Performing Areas — New Apartment Rentals

Leasing demand in apartment-heavy zones remained steady. JVC led with 1,484 new leases, followed by International City with 934, Business Bay with 843, Dubai Marina with 558, and Silicon Oasis with 477. These corridors continue to perform thanks to broad unit variety, commuter-friendly access, and pricing that appeals to both singles and small families. Mid-tier areas again led volumes and helped underpin rental yields.

Top 5 Performing Areas — New Villa Rentals

Villa leasing ended the year on a solid note, led by Damac Hills 2 with 222 contracts. Mirdif followed with 98, Town Square with 81, Mudon with 68, and Dubai Hills Estate with 66. Demand remained focused on established suburban communities with family amenities, reasonable commutes, and ready-to-move homes, especially where pricing remained relatively accessible within the larger villa segment.

Cash purchases continued to dominate in December. Out of 17,596 residential sales, 14,582 were closed in cash and 3,014 were financed, putting cash at roughly 83% and mortgages at 17%. Mortgage lending for the month totalled AED 6.0 billion, with an implied average loan size just under AED 2 million.

Apartments led both segments. Of 15,177 apartment transactions, 13,164 were cash and 2,013 used financing, reinforcing the typical skew towards cash deals in this faster-moving, lower ticket market. 

Villas showed a more balanced split. Out of 2,419 villa deals, 1,418 were cash and 1,001 were mortgaged, with mortgages accounting for just over 41%. Larger average prices and longer hold periods in villa communities continue to support stronger reliance on financing, while apartments remain the preferred choice for cash-led investors and short-term landlords.

Dubai ended 2025 on a high note, closing December with AED 63.4 billion in property sales across 18,680 transactions. Thatʼs slightly below Novemberʼs count but still a 49% jump in value year-on-year and a 24% lift in volume. The year as a whole set new records for both value and transaction count, marking the strongest performance to date for the cityʼs property sector. Strong demand, continued developer activity, and a stable economic backdrop helped push momentum through the final stretch.

Apartments remained the backbone of the market, delivering over 15,000 deals worth AED 29.5 billion. Off-plan stayed in front, accounting for nearly 70% of residential sales, supported by flexible launch terms and wide buyer choice. JVC was again the top area for both off-plan and secondary apartment sales, followed by DIP Second, Business Bay, and Dubai Marina. Demand for ready stock held steady in core areas, though low turnover and firm pricing kept a lid on volumes.

Villa and townhouse sales climbed to 2,419 in December, totalling AED 15.8 billion in value. That's up sharply from November and reflects continued appetite for larger homes in family communities such as Dubai Hills Estate, Damac Hills 2, and Mirdif. Mortgage use remained high in this segment, with financing supporting just over 40% of transactions, a reflection of larger average ticket sizes and long-term ownership intent. 

Land and commercial sales were again strong contributors to overall value. Land alone accounted for AED 15.4 billion, underscoring steady investor interest in buildable plots across growth corridors. Commercial deals rose to 732 sales worth AED 2.7 billion, with activity focused on office and retail space in business and residential hubs. High occupancy in key office zones and tight logistics supply continued to draw institutional interest. 

Leasing volumes eased in December, consistent with year-end patterns. The city recorded just over 35,000 new rental contracts, slightly below November. Apartment and villa leases dipped, while commercial leasing improved. Shops and showrooms held flat, office activity remained solid, and demand for industrial and flexible-use space stayed firm.

Most tenant movement was concentrated in practical, well-located stock with competitive fit-out terms. 

Cash remained dominant across residential transactions. Of the nearly 18,100 residential sales, over 14,500 were cash-based, while just over 3,000 used mortgages. Apartments stayed highly cash-led at around 87% of deals, while villas saw more balanced activity. The pattern reflects continued strength from local investors and overseas buyers, especially in off-plan. 

Heading into 2026, Dubaiʼs real estate market sits on solid ground. The mix of high liquidity, growing population, strong tourism, and business formation has supported broad-based demand across segments. Developers are ramping up launches, which may test absorption in certain pockets. For now, buyer confidence looks firm and the fundamentals remain well aligned for a healthy start to the new year. December capped off what was, by most measures, the strongest year yet for Dubai property.

Mira International Valuations & Research division consists of a multi-disciplinary group of qualified professionals who have extensive local and international experience in the real estate industry.

The team of qualified valuers uses a range of comprehensive methods to provide clients with up-to-date and accurate valuations for all property types. This includes individual properties, property portfolios, and all kinds of asset classes. 

The process is carried out by professional valuers who are members of both RICS (The Royal Institution of Chartered Surveyors) and RERA (Real Estate Regulatory Authority), ensuring expertise and compliance with licensing requirements. 

The team also provides Feasibility Studies and Development Appraisals to determine the highest and best use, identifying opportunities and helping investors and developers avoid potential pitfalls.

Valuation advice and reports are provided for a variety of purposes, which include the following:

• Mortgage Financing (Banks & Financial Institutions) 
• Government Programs (Golden Visa) 
• Accounting 
• Mergers and Acquisitions 
• Investment Due Diligence / Strategic Advice
• Internal Purposes