Dubai’s real estate market is growing, but is this just the beginning?
While the headlines highlight a 23% year-on-year surge in property transactions, the real story lies in the changing behaviour of buyers and what that means for the next chapter of growth in the UAE property sector.
According to our Espace H1 2025 Market Report, recently published in Arabian Business, the first half of 2025 recorded 91,897 transactions, with demand spread across both off-plan and ready properties. However, rather than a short-term spike, industry experts believe this activity reflects a more measured and sustainable shift in the market.
Speaking to Arabian Business, John Lyons, our Managing Director at Espace Real Estate, explained that Dubai’s property sector is evolving beyond investor-driven flips and speculative purchases.
“In H1 2025, the Dubai residential real estate market continues to demonstrate remarkable resilience and growth,” he said. “But what’s more important is the shift in mindset; more residents are now viewing Dubai as a permanent home, not a temporary base.”
This sentiment is reinforced by several key trends. Off-plan activity remains strong, accounting for 59% of transactions, while the handover of 17,000+ new units has added fresh rental stock, helping cool price acceleration in some communities. Yet despite increased supply, both capital and rental values have continued to climb, especially in villa and townhouse segments, a clear indication of limited inventory and high buyer intent.
The report also notes that luxury real estate priced over AED 20M saw the sharpest growth in transactions, particularly from ultra-wealthy buyers from the UK. This is being linked to changes in international tax structures, like the UK’s non-dom rule shift, prompting high-net-worth individuals to relocate to Dubai for the long term.
“Communities like Emirates Hills, Palm Jumeirah, and Dubai Hills continue to lead in both sales volume and price appreciation,” John added. “There’s no question that Dubai is now being seen as a global address, not just a high-return investment.”
At Espace Real Estate, internal data reflects this shift, with clients showing stronger interest in long-term ownership, multigenerational family moves, and lifestyle-driven upgrades.
The takeaway is that Dubai’s real estate market is still growing, and for smart buyers, this phase presents an opportunity to invest and grow their returns on investments.
Thinking of buying?
Explore some of the properties for sale in Dubai, and you can read the full article on Arabian Business.
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