Dubai Property Market Hits Record High in Q3 2025 as Off-Plan Sales Skyrocket

DUBAI, UAE – Dubai's residential real estate market maintained its explosive growth in the third quarter of 2025, shattering records with off-plan property sales emerging as the undisputed engine of the boom. A comprehensive market report by Cavendish Maxwell reveals that a powerful combination of robust investor confidence, sustained population growth, and attractive developer payment plans fueled unprecedented transaction volumes.

The data confirms that buyer appetite, particularly for yet-to-be-built properties, remains insatiable, solidifying Dubai's status as a premier global investment destination.

Record-Breaking Numbers: Off-Plan Dominates

The Q3 2025 figures are staggering. Dubai recorded approximately 55,300 residential property transactions, a 17.1% increase compared to the same period last year.

The standout story is the overwhelming dominance of off-plan sales. This segment accounted for a massive 76% of all residential market activity, with around 42,000 off-plan deals registered. This represents a 23.6% annual increase and an 18.1% jump from the previous quarter, demonstrating accelerating momentum.

What's Driving the Off-Plan Frenzy?

The surge is largely attributed to developer incentives and flexible payment plans that make entering the market more accessible. Buyers are increasingly going straight to the source, with initial developer sales making up 93.9% of all off-plan purchases, up from 90.3% a year ago.

Conversely, off-plan resales—a key indicator of speculative flipping—dropped to just 6.1%. This shift suggests the market is being driven by end-users and long-term investors seeking value, rather than short-term speculators, pointing towards a more sustainable growth model.

Ready Property Market Cools as Apartments Lead

In a contrasting trend, the ready (completed) property segment showed signs of cooling. Transactions for finished homes fell to about 13,300, a 5.4% decline from Q2 and only a marginal 0.6% annual increase. This indicates that buyer interest is heavily concentrated in the off-plan sector, possibly due to price sensitivity in the ready market.

In terms of property types, apartments were the clear leader, constituting 89.4% of all off-plan sales. This demand is centered around high-density towers and master-planned communities. While villas and townhouses saw slower off-plan momentum, their share in the ready market slightly increased, reflecting continued demand from families seeking more space.

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Price Growth and Supply Dynamics

The booming demand continues to push prices upward. Residential sales prices saw a 4.5% increase quarter-on-quarter and a significant 16.1% jump year-on-year.

However, a significant supply gap persists. Only 9,400 units were delivered in Q3, far short of the projected 22,800. On a positive note, construction efficiency is improving, with the average project timeline shrinking from 1,340 days in 2023 to 880 days in 2025. A substantial pipeline of 366,000 units is projected through 2028, which analysts believe will support sustainable growth rather than create an oversupply.

Strong Fundamentals Underpin Positive Outlook

The market's strength is built on solid foundations. Dubai's growing economy, upwardly revised GDP forecasts, and a population projected to near 5 million by 2030 all underpin long-term housing demand.

Experts from Cavendish Maxwell conclude that the market is experiencing a "flight to quality," with buyers prioritizing well-located projects from reputable developers. The record off-plan activity is not a sign of a bubble but a reflection of strong fundamentals and strategic, value-driven investment, ensuring Dubai's real estate sector remains vibrant and resilient.