Is Now the Time to Invest? A Look at Dubai's Booming 2025 Property Market

The real estate sector across the globe may have had a dull year, but things were scorching hot for Dubai in 2025, one of the world's booming real estate destinations. Reports indicate that the demand for real estate in Dubai remains high, and transaction activity is nearing record levels.

According to multiple survey reports, Dubai’s branded residences market recorded a nearly 25% year-on-year increase in transaction volumes. New findings by leading real estate marketplace Property Finder show that home-buying appetite is stronger across all income groups.

The total transactions in 2025 amounted to over 197,000, surpassing the previous annual record of 180,900 set in 2024. The transactional values, according to another report, exceed AED 500 billion, supported by rapid population growth. The estimate is that over 200,000 residents moved to the country in a single year.

The branded residence market witnessed a dramatic increase in market share, thanks to increasing foreign investment and launches in communities such as The Oasis, Palm Jebel Ali, and Eden Hills. There was a high demand for larger, family-oriented homes in 2025, which indicated ongoing wealth migration and the rising number of international buyers moving to Dubai.

While demand for villas increases, the supply remains limited. This caused prices to soar. Local media reports hint that Dubai drew over 10,000 super-rich families, triggering a more than 200% surge in prime property prices.

According to Knight Frank’s Prime Global Cities Index, prime property prices in Dubai have soared 198% over the last five years, with the landscape dominated by ultra-luxury villas. These projects account for nearly 70% of sales above $10 million. The expectation is that over 31,000 units could spring up by 2030.

What draws them to Dubai is the brand prestige, lifestyle, investor confidence, and tax benefits. Savills Middle East, the international real estate solution provider, attributes the demand to wealth migration, limited supply in established prime communities, and the city’s continued evolution as a world-leading lifestyle and business hub.

The word is that if you own a villa or townhouse in Dubai, you are sitting on a gold mine. According to Savills' market report, The Oasis topped the villa communities with transactions over AED 10 million, with 1,024 villas being sold. Palm Jebel Ali came next with over 560 villas. With regard to apartment communities with transactions over AED 10 million, Dubai Harbour topped the list with 250 villas, while Dubai Downtown came second. Palm Jumeirah and Business Bay were also in demand.

Not just villas and apartments, off-plan sales also spiked. They accounted for 68% of activity, which showed the investor confidence in the Emirates. The Golden Visa scheme has also influenced buyer behavior by encouraging residents to treat Dubai as a permanent base rather than a temporary assignment.