The third quarter of 2025 has proven to be yet another milestone for Dubai’s real estate sector, defying seasonal patterns and continuing its upward trajectory. Backed by strong demand from both local and international buyers, robust liquidity, and favorable regulatory conditions, Dubai’s property market remains one of the most dynamic globally.

In this report, AIM Properties presents a detailed overview of Q3 2025 performance: transaction volumes, price trends, segment breakdowns, supply dynamics, rental yields, and future outlook.

---

1. Market Snapshot & Key Metrics

• Dubai recorded 52,853 transactions in Q3 2025, valued at AED 132.8 billion (~USD 36.2 billion). Zawya+1

• Compared with Q3 2023, transaction volume surged ~60.8%, underscoring strong year-on-year growth. Arabian Business+1

• The average price per sq. ft. reached AED 1,913, up from AED 1,629 in Q3 2023—a ~17.4% increase. Arabian Business+1

• Price growth, though significant, lags the rate of transactional growth, pointing to more demand than mere speculative premium pricing. Zawya+1

These headline figures reflect a healthy combination of high activity and moderate price acceleration—signals of momentum, not overheating (yet).

---

2. Segment Analysis

2.1 Residential — Apartments & Villas

• Apartments / mid-rise / high-rise continued to dominate transaction share. Submarkets such as JVC (Jumeirah Village Circle), Business Bay, and Dubai Marina featured among the most active zones. Zawya+2Mieyar UAE+2

• Villas and townhouses saw sustained interest, especially in communities like MBR City, Dubai Hills, and DAMAC Lagoons. Four-bedroom villas were particularly in demand. Zawya

• Off-plan projects continue to lead in both value and volume, thanks to flexible payment plans, price advantages, and future capital appreciation expectations. Mieyar UAE+3Realtree Properties+3Arabian Business+3

2.2 Commercial & Other Sectors

While residential remains the focal point, the commercial and mixed-use segments have benefited from spillover demand, especially in retail and logistics space. International businesses and regional expansions continue to fuel interest in office leasing and co-working spaces.

---

3. Supply, Deliveries & Inventory

• The pipeline of new units—especially for handover in 2025 and 2026—is considerable, with estimates crossing 80,000+ units scheduled for delivery. Arabian Business+3Zawya+3Mieyar UAE+3

• New supply is more concentrated in periphery and emerging communities, intended to relieve price pressure in mature zones while offering upside potential for capital growth. Realtree Properties+2Mieyar UAE+2

• That said, rising supply raises the possibility of moderation—especially in mid-tier apartments where absorption may slow. Realtree Properties+1

---

4. Rental Yields & Demand from Tenants

• Dubai continues to offer competitive gross rental yields, often ranging in the ~6%–9% bracket (depending on location, unit type, and amenities).

• The demand side remains strong: many end-users are transitioning from renting to owning, especially in light of rising rental pressure and expectations of further capital growth.

• Short-term and holiday rental markets also remain a draw in key zones close to tourism hubs, boosting effective yields.

---

5. Drivers & Risks

5.1 Key Growth Drivers

• Population growth & expatriate inflows: Dubai’s population is edging past the 4 million mark, increasing housing demand across segments. Zawya+1

• International capital & liquidity: Dubai remains an accessible haven for global capital, thanks to favorable tax and regulatory structures.

• Government support & regulation: Initiatives such as streamlined transactions, visa incentives, and infrastructure development (Urban Master Plan 2040) help undergird confidence. Zawya+2Arabian Business+2

5.2 Risks & Moderators

• Oversupply risk: The large pipeline of new units, especially apartments, could outpace demand in some segments, leading to price cooling or longer absorption periods. Arabian Business+3Realtree Properties+3Mieyar UAE+3

• Interest rate environment / financing constraints: If global or local borrowing costs rise, buyers may hesitate, particularly in speculative or leveraged purchases.

• Macro-economic headwinds: Global economic shocks, currency fluctuations, or volatile energy prices could indirectly pressure investor sentiment.

• Speculative volatility: Some flips and short-term speculative plays may face challenges in a more measured market.

---

6. AIM Properties’ Insights & Strategic Outlook

At AIM Properties, we see Q3 2025 as a continuation of Dubai real estate’s strong momentum—but with signs that the market is maturing and evolving from pure momentum to structural strength.

What we recommend for stakeholders:

• For investors: Favor premium and “future-proof” assets (smart buildings, sustainable design, prime locations). Be cautious in saturated submarkets.

• For end-users / homebuyers: Consider locking in interest rates and securing units in high-upside communities.

• For developers: Emphasize quality, design, and phased delivery. Focus on differentiation (amenities, tech, sustainability) to stand out.

• For policy-makers: Monitor absorption rates, avoid speculative excess, and maintain infrastructure investment to support expanding urban sprawl.

Looking ahead, we anticipate:

• Moderated price growth in Q4 as supply begins to weigh in, especially in mid-tier segments.

• Continued strength in luxury, branded residences, waterfront, and villa markets.

• More consolidation and partnerships in the sector, especially for projects combining commercial, retail, hospitality, and residential (mixed use).

---

Conclusion

Q3 2025 has reaffirmed Dubai’s status as one of the most vibrant real estate markets globally. With strong transactions, rising prices, and continued investor interest, Dubai is not merely riding a cycle—it’s entering a more mature growth phase.

However, this trajectory must be tempered with prudent planning, sensitivity to supply dynamics, and a focus on sustainable value. As AIM Properties, we remain committed to guiding clients—investors, homebuyers, and developers—through this evolving landscape with clarity, data, and foresight.