Dubai’s property market continued to look up in Q3 2025, defying expectations of a summer slowdown.
Speaking to Dubai Eye 103.8FM’s Business Breakfast, John Lyons, Managing Director at Espace Real Estate, shared that Espace recorded a 42% year-on-year increase in revenue for the quarter, a clear sign that market confidence remains strong.
“The summer period, which usually is a slower period, was quite the busy season for us,” John explained. “We were selling properties at AED 80 million, AED 65 million; the higher end of the market continued to operate with great enthusiasm.”
Listings surge, but supply remains in check
Espace saw a 148% year-on-year increase in new property listings and a 77% rise in buyer registrations, signalling that both sellers and buyers remain active. However, John cautioned that these figures don’t necessarily mean there is a high supply of available inventory.
“Some sellers enter the market to test pricing,” he said. “If they don’t achieve their target, many decide to rent instead. So while listings are up, true availability remains limited, especially for well-located family homes.”
This dynamic, he explained, means that while activity is high, supply isn’t outpacing demand. Instead, it reflects a more fluid market where sellers explore their options before committing to a sale.
Transaction volumes shift across communities
Espace’s quarterly report tracks 34 key Dubai communities, offering a close look at how demand spreads across the city. While some villa and townhouse communities saw around 8% lower transaction volumes year-on-year, the overall secondary market rose 2% in volume and 11% in value.
“There are simply more communities now than a year ago,” John shared.
The new developers on the market
Espace’s Q3 leaderboard for developer transactions saw a shift from the usual dominance of the Emaar-Nakheel duo. Binghatti, DAMAC, and Sobha took the top three spots for the quarter’s off-plan sales.
John added that quarterly snapshots can fluctuate depending on which projects are launching, but he acknowledged these developers’ growing influence. “They’re delivering strong projects, and buyers are responding to the quality and branding,” he said.
Rental market matures and broadens
For tenants, Dubai’s rental landscape is evolving too. John shared his observation that the rental market is becoming more mature, with residents exploring newer and more affordable communities.
“We’re seeing people shift from prime areas like Dubai Marina to places like JVC for better value,” he said. “Rental prices aren’t rising as fast as sales, so yields are compressing slightly, but overall, the rental market remains healthy.”
He added that tenants increasingly view renting as a short-term phase. “Many stay one or two years before buying. There’s a clear aspiration to own property once they’ve settled in Dubai.”
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