The new report confirms a 22% growth in residential real estate and a 31% growth in commercial real estate in Dubai, strengthening the emirate's position as one of the most resilient real estate markets in the world.

Dubai, United Arab Emirates – Engel & Völkers Middle East, a leading brokerage firm specializing in luxury residential and commercial real estate, revealed that Dubai’s real estate market once again outperformed expectations, even during the slower summer season. Residential sales rose 22.7% year-on-year, while commercial sales increased by 31% in the third quarter of 2025. These results reflect Dubai’s leading position globally in real estate, supported by investor confidence, end-user demand, and a population of over four million.

Commenting on the matter, Daniel Hadi, CEO of Engel & Völkers Middle East, said: “The Dubai real estate market has reached an unprecedented level of growth, which is no longer limited to investor activity. We are now witnessing a long-term commitment from people who consider Dubai their home and a destination to build their lives, careers, and future legacy.”

In the residential real estate market, off-plan properties continued to flourish, accounting for approximately 70% of total sales, while the resale market remained robust in popular neighborhoods characterized by limited supply and attractive lifestyles. Apartments accounted for 87% of total transactions, with 47,705 units sold worth AED 91.4 billion, a 26.4% increase over last year. The luxury sector continued to perform strongly, recording 1,388 transactions exceeding AED 10 million, marking the second-strongest quarter on record. Notable transactions included an off-plan villa worth AED 350 million in Jumeirah Asura Bay and an apartment worth AED 173.6 million in Aman Residences, Jumeirah.

Newly developed residential communities, such as Dubai Science Park, Damac Riverside, and Dubailand Residence Complex, attracted significant investor interest due to their long-term potential, while popular areas, including Dubai Marina and Downtown Dubai, led secondary market activity. Rising rents and a growing sense of stability among residents have also driven a shift from renting to owning, particularly among families and professionals seeking long-term stability.

This momentum was reflected in the commercial real estate market, with 3,418 transactions worth AED 30.4 billion, a 31% year-on-year increase. All categories recorded double-digit growth: offices (+45%), retail (+37%), land (+36.8%), and buildings (+50%), indicating strong corporate appetite for income-generating assets. Business Bay led the growth, registering transactions worth AED 3.4 billion, followed by Ras Al Khor with large-scale land sales transactions worth AED 2.9 billion.

Office real estate performed remarkably, with 1,151 transactions worth AED 3.1 billion, nearly double last year's total, amid continued high demand for premium workspace in strategic locations. The market also witnessed a significant increase in off-plan office sales, which jumped from 69 offices in Q3 2024 to 389 offices this year, reflecting a growing trend towards sustainable, future-proof work environments. "The significant increase in demand for off-plan offices underscores how investors are adapting to the next phase of business growth in Dubai," Hadi added.

Dubai's economic indicators continue to stabilize, with the International Monetary Fund projecting the UAE's GDP to grow by 4.8% in 2025 and 5% in 2026, supported by economic diversification policies, financial stability, and foreign investment inflows. Inflation rates remain low, with anticipated interest rate cuts expected to boost demand for real estate.

Engel & Völkers expects the upward trend in residential and commercial real estate to continue in the fourth quarter of the year and beyond. Hadi concluded: "Sustainable growth has become an integral part of Dubai's identity. It is no longer just an investment destination; it now combines belonging, ambition, and sustainable value."

About Engel & Völkers:

Engel & Völkers is one of the world's leading brokerage firms specializing in residential and commercial real estate, luxury yachts, and aircraft. Since its founding in 1977, the firm has prioritized the desires and needs of its individual and institutional clients, resulting in the development of a comprehensive range of real estate services. Engel & Völkers employs more than 16,700 people, specializing in sales, leasing, and advisory services for various investment opportunities in the real estate sector. The firm currently operates in more than 35 countries across five continents. The intensive training programs offered by the Engel & Völkers Real Estate Academy and the firm's extensive, carefully curated list of high-quality services are key factors contributing to its success. Engel & Völkers is also committed to continuously developing digital tools and IT products to continue delivering the highest possible level of service efficiency. Through this, the firm sets new standards for digital solutions in real estate brokerage. www.engelvoelkers.com

About Engel & Völkers Middle East:

Established in 2014, Engel & Völkers Middle East is headquartered in Dubai, UAE, with over 200 agents specializing in luxury residential and commercial properties. The company recently launched a dedicated commercial real estate entity, Engel & Völkers Middle East Commercial Properties, enabling clients to tap into the exceptional opportunities emerging in Dubai's commercial real estate market, from office space to industrial parks and other attractive options. The company also includes a private wealth management office focused on high-net-worth clients, providing them access to luxury properties worldwide. This makes Engel & Völkers Middle East a one-stop destination for buying, selling, and leasing real estate, and for realizing real estate ambitions in the region. www.engelvoelkers.com/ae/en

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