Market Trend Reports
Comprehensive analysis of market performance, pricing trends, and investment activity by Mira International.
Table of Contents
The Dubai residential real estate market closed the third quarter of 2025 with one of its strongest performances of the year. After a traditionally slower summer period, September marked a clear return of investor and end-user activity across residential, commercial, and rental segments.
According to the latest Dubai Residential Market Review prepared by the Valuations & Research Department of Mira International, total transaction volumes and values rebounded sharply, reinforcing Dubai’s position as one of the most resilient and liquid global property markets.
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Dubaiʼs property market rebounded strongly in September, recording 20,360 transactions worth AED 54.7 billion, up 13% in volume and 7.7% in value compared to August. This marks the highest monthly transaction volume since May and reflects a healthy return of investor activity post-summer, especially in apartments and commercial properties. Villas and offices also saw renewed momentum, while land transactions plateaued.
Apartments remained the backbone of Dubaiʼs residential market in September, with 17,279 sales totaling AED 32.1 billion—a 7.7% increase in value and nearly 10% rise in volume month-on-month. Off-plan apartments dominated, making up 79% of apartment transactions (13,656 off-plan vs. 3,623 ready). Communities such as JVC, Dubai Science Park, and Business Bay led activity, supported by strong mid-market launches and investor-friendly pricing. In the ready market, Dubai Marina and Downtown remained firm favorites for lifestyle buyers and renters.
The villa segment bounced back after Augustʼs dip, with 2,135 transactions worth AED 13.2 billion, a solid 12% jump in value and 7% rise in volume. Of these, 1,299 were off-plan and 836 ready—showing continued buyer confidence in under-construction homes. Top-performing villa communities included Damac Hills 2, Dubai Hills Estate, and Mirdif. New stock remains limited, particularly for ready units, keeping prices firm and competition high.
Commercial transactions surged by 25% in value and 18% in volume, with 517 sales worth AED 1.5 billion. Office space led demand, especially in Business Bay, Downtown, and DIFC-adjacent zones. Leasing activity also gained ground, with 15,278 new commercial rental contracts signed, up 14.4% from August. The strongest leasing growth was seen in offices (+14.4%) and mixed-use assets (+17.5%), indicating renewed demand from expanding businesses and startups.
Land transactions held steady at 429 deals totaling AED 7.9 billion, almost flat compared to August. Developers and private investors continued to target mid-sized plots in Dubai South, Dubailand, and Nad Al Sheba. With the focus shifting to large-scale community developments, land acquisition remains strategic but is showing signs of price resistance in prime zones.
Off-plan residential activity remained the dominant force, accounting for 14,955 transactions (77% of total residential sales) and AED 33.8 billion in value, nearly triple the volume and value of ready market transactions. This sustained demand reflects buyer preference for staggered payments, launch incentives, and future rental yield prospects.
The rental market accelerated in September, registering 41,988 new rental contracts —a 14% increase from August. Apartments saw the most significant gain, with 23,935 new leases (+14.6%), driven by steady demand from new residents and internal relocations. Villas also saw a slight rise to 2,775 contracts, while commercial rentals climbed sharply to 15,278.
Office leasing was the standout performer, increasing to 7,761 leases, followed by mixed-use assets (+17%) and shop/showroom rentals (+8%). Industrial space leasing remained flat. The shift suggests sustained growth in SME setups, co-working models, and relocation demand from older inventory to better-located or better-configured space.
Apartments continued to anchor Dubaiʼs real estate performance in September, recording 17,279 transactions worth AED 32.1 billion, a 7.7% increase in value and a 10% rise in volume compared to August. The segment accounted for the majority of all property deals, reaffirming its position as the cityʼs most active and accessible investment class.
Off-plan apartments maintained their dominance, accounting for 13,656 sales, or nearly 79% of total apartment transactions. Developers in JVC, Dubai Science Park, and Business Bay drove demand through new project launches and flexible post-handover payment plans.
Activity in DIP and Dubailand also increased as investors targeted mid-market projects offering higher yields and manageable entry prices.
Ready apartment sales remained stable, led by communities such as Dubai Marina, Downtown, and Al Furjan, where resale demand from both investors and end-users stayed firm. The limited supply of completed apartments and steady population growth kept prices resilient. With average rental yields in mid-tier areas still ranging between 6–8%, apartments remain the most popular choice for first-time homeowners and investors seeking consistent returns.
After a slower August, Dubaiʼs villa and townhouse market regained momentum in September, posting 2,135 sales with a total value of AED 13.2 billion—an 11.9% jump in value and a 7% rise in volume month on month. The rebound reflects a return of end-user demand following the summer lull, alongside renewed investor confidence in new off-plan launches.
Off-plan villas continued to lead activity with 1,299 transactions, surpassing 836 ready deals. New communities such as Damac Lagoons, Dubai South, and The Valley by Emaar remained key attractions for families and investors alike, thanks to affordable unit sizes and flexible financing structures.
Meanwhile, established villa districts like Dubai Hills Estate, Mirdif, and Tilal Al Ghaf retained high buyer interest but limited available stock. The shortage of ready villas is still pushing prices upward, especially for high-quality or upgraded homes. While market analysts suggest villa price growth is moderating compared to 2024, the segment continues to benefit from Dubaiʼs population expansion and lifestyle appeal. Spacious layouts, community amenities, and long-term appreciation potential ensure that villas remain a cornerstone of Dubaiʼs premium housing market.
The commercial real estate segment strengthened in September, recording 517 transactions worth AED 1.5 billion, a 25% increase from August. The improvement was supported by sustained demand for office space in Business Bay, Downtown, and DIFC-adjacent areas, where Grade A office occupancy remains near full capacity.
Leasing activity also improved notably, with 15,278 new commercial rental contracts, up 14% month-on-month.
Office rentals led with a 14.5% increase, followed by shops and showrooms (+8.4%) and mixed-use spaces (+17.5%). The industrial segment remained flat, constrained by limited new supply and strong tenant retention. Dubaiʼs office market continues to shift from oversupply to strategic shortage, driven by strong business formation in technology, AI, and financial services. Demand for smaller, flexible spaces is also growing as startups and SMEs expand. The steady rise in commercial sales and rents points to increasing investor confidence and an increasingly diversified property sector.
Land transactions remained stable in September, totaling 429 deals valued at AED 7.9 billion, almost unchanged from August. Despite a slight 1.25% dip in value, developer interest in mid-sized, strategically located plots remained consistent.
Active trading was recorded in Dubai South, Nad Al Sheba, and Dubailand, where investors are targeting future residential developments aligned with the Dubai 2040 Urban Master Plan. End-users also continued to acquire smaller plots for custom villa construction.
High-value land deals were quieter than in earlier months, but market sentiment remains strong as developers continue land banking in anticipation of upcoming project launches. The focus remains on buildable plots with access to infrastructure and flexible zoning. Overall, land sales are maintaining a healthy pace, reflecting steady long-term confidence in Dubaiʼs real estate development cycle.
September 2025 recorded a total transaction value of AED 54.7 billion, up 23% compared to AED 44.6 billion in September 2024. This marks one of the strongest monthly performances of the year and reflects the continued strength of Dubaiʼs property market heading into Q4. Growth was driven by both off-plan activity and a notable rebound in villa and commercial property segments, reinforcing investor confidence and sustained demand across product types and price tiers.
Sales Transactions Month on Month / Aug 2025 – Sep 2025
Transactions Value Graph 2024 v/s 2025
Transactions Value 2024 v/s 2025
Dubai registered 20,360 property transactions in September 2025, a 13% increase over the 18,045 deals recorded in the same month last year. This marks yet another month of consistent year-on-year growth and is the highest September volume ever recorded.
The sustained momentum reflects strong off-plan absorption, resilient resale activity, and a growing buyer base supported by population growth, new visa pathways, and targeted developer incentives.
Transactions Volume Graph 2024 v/s 2025
Transactions Volume 2024 v/s 2025
Rental activity in Dubai strengthened in September, with 41,988 new rental contracts registered—a 13.8% increase from August. Apartment leases led the surge with 23,935 contracts, up 14.6% month-on-month, indicating a post-summer recovery and ongoing demand from new residents and relocators.
Villa rentals rose modestly by 2.6% to 2,775 transactions, suggesting stable family housing demand. Commercial rentals rebounded substantially, climbing 14.4% to 15,278 leases, as business activity regained momentum heading into Q4.
New Rental Transactions
Dubai recorded 15,278 new commercial leases in September, up 14.4% from the previous month. Office rentals saw the most growth, rising 14.45%, driven by expanding demand from SMEs and international firms.
The ‘otherʼ category (mixed-use and flexible commercial units) jumped 17.5%, reflecting shifting space usage preferences. Shops and showrooms also gained ground with an 8.4% increase, while industrial leases remained flat, reflecting stable demand amid constrained supply.
Commercial Rental Breakdown
Off-plan sales continued to dominate Dubaiʼs residential market in September, with 14,955 transactions, compared to just 4,459 ready (secondary market) sales.
Over 77% of all residential deals were off-plan, highlighting ongoing investor preference for flexible payment structures, lower upfront costs, and longer-term yield expectations. Ready market activity remained healthy but was constrained by inventory shortages and rising resale prices.
Off Plan v/s Secondary Sales
Off Plan v/s Secondary Sales
JVC led off-plan and secondary sales, confirming its liquidity and broad market appeal. Business Bay, Dubai Marina, Downtown Dubai, and International City followed across various segments.
Off-plan activity remained strong in September, with Jumeirah Village Circle (JVC) topping the list at 1,472 transactions, supported by a steady rollout of mid-market launches. Dubai Science Park followed closely with 1,302 deals, reflecting growing investor confidence in emerging communities.
Business Bay maintained its appeal with 1,014 transactions, while DIP Second and Dubailand Residence rounded out the top five with 926 and 641 transactions, respectively. The spread of sales highlights ongoing demand for both centrally located towers and affordable units in outer master planned zones.
Top 5 Performing Areas — Off Plan Sales
JVC once again led the ready property market in September with 441 secondary transactions, confirming its strong resale liquidity and continued popularity among end-users and investors. Business Bay followed with 249 deals, supported by high rental yields and consistent tenant demand. Dubai Marina, Downtown Dubai, and International City rounded out the top five, offering a mix of waterfront views, lifestyle convenience, and accessible pricing across different buyer profiles.
Top 5 Performing Areas — Secondary Sales
Rental demand for apartments surged in September, with JVC recording the highest number of new leases at 2,051 contracts. Business Bay came in second with 1,156 rentals, reflecting its continued appeal to professionals and short-term residents. Dubai Marina, International City, and Downtown rounded out the top five, each maintaining vigorous tenant activity thanks to their blend of accessibility, amenities, and community infrastructure.
Top 5 Performing Areas — New Apartment Rentals
Damac Hills 2 led villa leasing once again with 219 new contracts in September, driven by its affordability and family-focused layout. Mirdif followed with 159 leases, appealing to tenants seeking larger homes with central access. Dubai Hills Estate, Town Square, and The Springs also ranked highly, offering a combination of landscaped communities, green space, and strong family appeal in the villa rental segment.
Top 5 Performing Areas — New Villa Rentals
Cash transactions continued to outweigh mortgage-backed purchases in September, with 16,132 residential deals completed in cash versus 3,282 financed through mortgages. This means approximately 83% of all property transactions were cash-based—a reflection of Dubaiʼs investor-driven market and the impact of high interest rates on end-user borrowing.
Apartments remained the dominant asset class across both categories, with 15,173 apartment sales conducted in cash and 2,106 via mortgage. In the villa segment, financing was more balanced, with 1,142 villa purchases supported by mortgages, compared to 993 completed in cash.
Residential Mortgage Buyers v/s Cash Buyers
The total mortgage transaction value reached AED 6.7 billion, underscoring continued demand from end users despite rising borrowing costs. However, the preference for cash purchases remains a key feature of Dubaiʼs property landscape, particularly among international buyers and investors prioritizing liquidity and speed of execution.
Residential Mortgage Buyers v/s Cash Buyers
Dubaiʼs real estate market continued to post strong results in September, with roughly AED 54.3–54.7 billion in sales value and over 20,000 transactions — both significantly higher year-on-year. Apartments remain the backbone of the market, especially in the off-plan segment, which now represents over three-quarters of residential deals.
What's notable is the widening reach: from entry-level studios to ultra-luxury villas, buyer activity spans nearly every price band, bolstering market stability even amid external headwinds.
Apartment demand is being driven by a mix of end users and investors. Mid-tier districts like JVC, Business Bay, and Dubai Science Park continue absorbing much of the volume. At the same time, high-end launches in Downtown and Dubai Marina, as well as branded projects, maintain momentum from abroad. Developers are also leaning harder into amenities, green credentials, smart-home features, and integrated living to differentiate new launches from older supply.
Villas and townhouses recovered from their summer lull, showing a rebound in volume and value. The key constraint, as always, is supply — especially for ready-to-move units in desirable neighbourhoods. Developers are introducing new phases in areas such as Dubai South, The Valley, and Palm Jebel Ali, though most of these won't deliver for some time. That means prices for prime villa stock are holding firm, supported by buyers seeking lifestyle upgrades and long-term capital appreciation.
Commercial assets showed renewed strength in September. Office space — especially in Business Bay and DIFC-adjacent zones — performed well, supported by business expansion in fintech, professional services, and regional firms. Retail and mixed-use properties also saw higher leasing activity. The commercial sector is slowly shifting from surplus to selective supply, and many investors are turning to hybrid units to capture rental upside in versatile formats.
Foreign investment remains a critical pillar. Dubai continues to attract high-net-worth buyers, particularly from India, China, CIS, and Europe. Creative marketing tactics tied to festivals like Diwali — offering incentives and Golden Visa perks — have boosted interest from Indian buyers in particular. At the same time, significant private equity moves, such as Permira and Blackstone acquiring stakes in Property Finder, signal confidence in the sector's infrastructure and growth potential.
But the market is not without caution flags. Analysts are beginning to question the durability of rapid growth, given projections for up to 93,000 new units entering the pipeline in 2025 alone. Some flip-strategy investors are reportedly having difficulty offloading off-plan contracts, hinting at early signs of cooling in speculative segments.
Rating agencies are increasingly forecasting potential price corrections in 2026 if supply overwhelms demand in oversaturated districts.
Economic signals are encouraging. The UAEʼs non oil private sector expanded in September, with the PMI rising to 54.2. Dubai, in particular, saw strong growth in new orders, output, and employment—clear signs that business sentiment is recovering after a slower summer. These macro trends support a positive backdrop for real estate, especially if local demand continues to absorb new supply.
All told, Dubai is entering a more disciplined phase of growth. The dramatic volume gains and speculative excesses of past years are giving way to smarter launches, stronger quality controls, and investor focus on location, yield, and sustainability. Confidence remains strong, but with more nuance. The market is evolving: it's not just about volume anymore, but also about quality, absorption, and resilience as Dubai transitions into a more mature real estate cycle.
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.
Valuation advice and reports are provided for a variety of purposes, which include the following:
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