Your guide to discovering the real estate market in Dubai

The Dubai real estate market is considered one of the most important markets in the Arab world and globally, as this sector witnesses active and continuous movement. In this article, we will learn about this market in terms of size, performance, and sales for the past year, as well as other important details in this context.

A Historical Overview of the Real Estate Market in Dubai

The real estate market in Dubai has witnessed significant changes and developments over the years. In the 1960s and 1970s, Dubai was still a relatively small city at the beginning of its development. Properties were mainly owned by individuals or small groups, and there were few regulations governing the market.

The city began to witness major economic growth during the 1980s and 1990s. The government made intensive investments in infrastructure and development projects, giving the city a character of progress and growth.

The real estate market also began to flourish, as the government offered incentives to attract foreign investment.

The Dubai real estate market experienced a boom in the early 2000s, supported by a combination of easy credit, rising oil prices, and a growing population. Developers launched ambitious projects, including the world’s tallest building, Burj Khalifa, and the artificial Palm Jumeirah Island.

The Dubai real estate market remains an important part of the city’s economy, with a mix of residential and commercial properties. The government continues to invest in infrastructure, construction, and development projects to attract investors from all over the world.

This means that the Dubai real estate market has witnessed major positive changes and developments over the years and will continue to evolve in response to new economic and regulatory conditions.

Size of the Dubai Real Estate Market

The Dubai real estate market is one of the most dynamic and diverse in the world, and it has continued its strong growth in recent years up to 2025, driven by key factors including the emirate’s strategic location, government policies supporting foreign investment, continued population growth, and the strong performance of the tourism and business sectors.

The luxury residential apartment market saw deals exceeding 18.9 billion dirhams during the first quarter of 2025, while the share of the luxury real estate market rose to about 24% of the total residential real estate market in Dubai during the same period, reflecting the increasing demand for high-quality real estate assets.

The average price per square foot for luxury properties also increased by 18.6% to about 3,950 AED, while the average price of luxury properties in general reached about 31.4 million AED, recording an annual growth of around 22% compared to previous periods.

Luxury residential areas continued to achieve positive growth in sales volume on a quarterly basis; Al Barari recorded growth exceeding 140% with a value of about 1.1 billion AED, while Jumeirah Bay achieved growth of about 190% with total sales of 2.8 billion AED. Downtown Dubai recorded sales of 4.1 billion AED with a growth rate of 35%, while Emirates Hills achieved moderate growth of 14% with a value exceeding 720 million AED. Meanwhile, Palm Jumeirah continued to record an increase in average prices by about 16% on a quarterly basis, benefiting from luxury sales exceeding 6.4 billion AED.

In Jumeirah Bay, residential apartment sales reached about 128 million AED, recording growth exceeding 38%, mostly concentrated in Bulgari projects and resorts, which continued to top the list of the most expensive real estate deals with values exceeding 450 million AED per deal.

The highest average price per square foot was recorded in Palm Jumeirah at about 3,850 AED, followed by Emirates Hills at 2,980 AED, while Jumeirah Bay’s sales volume increased by about 190% on a quarterly basis.

In the luxury villa market, more than 320 villas were sold during the first quarter of 2025, with a total value of about 6.9 billion AED. Palm Jumeirah topped the list of highest-selling areas with a value of 2.3 billion AED, followed by Dubai Hills Estate with about 1.9 billion AED, then Al Barari with a value of about 1.1 billion AED.

The average price of a luxury villa reached about 41.6 million AED, achieving an annual growth of about 30%, while the average price per square foot for luxury villas rose to about 4,120 AED, recording a notable increase driven by strong demand for standalone homes. It is worth noting that more than 85% of luxury villa sales were concentrated in the primary residential market and newly planned areas.

With the start of 2026, indicators show that the high-value residential real estate transaction market is expected to see further growth, supported by changing lifestyles and increasing interest from investors and foreigners, especially from Europe and Asia, in owning luxury properties in Dubai as a long-term investment option.

Latest updates : Dubai Real Estate Market Forecast

How Did the Dubai Real Estate Market Perform in 2025?

In the fourth quarter of 2025, the Dubai real estate market recorded transactions worth over 140 billion AED, an increase of about 12% compared to the same quarter of 2024, according to data from Dubai Land Department.

The residential real estate price index issued by ValuStrat also rose to about 217 points, recording an annual growth of about 24%, reflecting continued price momentum and strong demand.

Reports from Property Monitor indicate that the increase in deals and stable quarterly growth confirm improved investor confidence, especially in off-plan projects and major investment areas.

As for residential units, demand was clearly focused on units with moderate and affordable prices, with continued interest from home seekers in areas such as Jumeirah Village Circle and Bur Dubai, for their balance between price, location, and services.

For villas with moderate rents, Damac Hills and Mirdif continued to top the demand, while Dubai Marina and Business Bay remained the most attractive for those seeking luxury apartments. Al Barsha and Jumeirah remained among the preferred choices for those looking for family residential villas.

Dubai Marina continued to be the most sought-after area by investors in luxury apartments, with the average price per square foot rising by about 9%, followed by Business Bay, Downtown Dubai, Palm Jumeirah, and Jumeirah Beach Residence, where the increase ranged between 10% and 14% in the average price per square foot.

According to the latest indicators, Jumeirah Village Circle remained the most in-demand option for mid-priced apartments, with the average apartment sale price growing by about 6.5%, bringing the average price per square foot to about 1,050 AED.

Areas such as Dubai Oasis, International City, Jumeirah Lakes Towers, and Dubai Production City also attracted those looking for low-cost apartments, where the average sale price per square foot increased by about 8%, with the highest price growth recorded in Jumeirah Lakes Towers compared to other low-priced areas.

As for the villa sector for freehold ownership, Dubai Hills Estate continued to attract the interest of major investors, with the average price per square foot reaching about 1,820 AED, recording an annual growth of about 12%. At the same time, the prices of luxury villas in areas such as Palm Jumeirah, Arabian Ranches, and Damac Hills saw increases ranging between 18% and 22%, driven by strong demand for standalone villas and upscale residential communities.

Dubai Real Estate Sales to Foreigners

Dubai continued to achieve record results in its real estate market during 2024 and 2025, with the total value of real estate deals exceeding 500 billion AED annually, according to official data from the relevant government authorities, reflecting the strength of the market and the continued momentum of foreign investment.

This growth comes at a time when Dubai is witnessing increasing demand from foreign investors to purchase properties, especially in prime areas, with Russian and European investors remaining among the most active segments, along with a noticeable increase in demand from Asian investors. The Dubai real estate sector has recorded strong cumulative growth since 2022, maintaining an upward trajectory through 2025.

Today, the real estate sector represents about a third of Dubai’s non-oil economy, and it has continued to grow steadily, supported by government policies encouraging investment, the expansion of long-term residency programs, and the stability of the economic environment after the recovery phase from the Covid-19 pandemic.

According to the latest data, Dubai recorded more than 160,000 residential real estate transactions annually during 2024 and 2025, surpassing all previous records, with a total value exceeding 400 billion AED for the residential sector alone. European investors (including Russians, British, French, and Italians) continued to be among the top five foreign nationalities investing in the Dubai real estate market.

At the same time, Indian investors maintained a leading position among the largest investing nationalities, while expectations point to increasing competition from Asian investors, especially from China and East Asia, during 2026, enhancing the diversity of the foreign investor base and confirming Dubai’s position as a global real estate destination.

Reasons for Foreign Interest in the Dubai Real Estate Market

There are several reasons behind foreigners’ interest in the Dubai real estate market, the most important of which are:

• Tax advantages: Dubai has no personal income tax, no capital gains tax, and no property taxes, making it an attractive destination for foreign investors seeking to minimize their financial obligations.
• Strategic location: Dubai is located at the crossroads of Europe, Asia, and Africa, making it an important hub for trade and investment. The city’s proximity to major surrounding markets and its excellent infrastructure make it an attractive location for business and investment projects.
• Strong economy: Dubai boasts a diverse and growing economy. With a focus on sectors such as finance, tourism, and real estate, the city’s economic stability and growth potential make it an attractive destination for foreign investors seeking to diversify their portfolios.
• High rental yields: Rental returns in Dubai are among the highest in the world, with some properties yielding up to 10%. This makes it an attractive destination for investors seeking to increase their profits in this vital sector.
• Luxury real estate: Dubai is famous for its luxury properties, including modern villas, apartments, and upscale shops. This offers an opportunity for fully featured living and investment in the high-end real estate market at the same time.
• Incentivizing laws: In Dubai, there are several laws to attract foreign investment in the real estate market, including offering long-term visas to property owners, reducing transaction costs associated with buying and selling properties, and other related facilities and features in this field.

What Are the Expectations for the Dubai Real Estate Market in 2026?

Expectations for the Dubai real estate market in 2026 indicate continued balanced growth, with a shift in supply and demand dynamics towards price sustainability and strong investment. The average prices of residential properties are expected to continue rising at a moderate pace of between 5% and 10% annually, supported by strong demand from both investors and residents. Meanwhile, rental price increases are expected to slow to low single digits as new residential units enter the market.

Analysts also expect increased demand for off-plan projects in key areas such as Dubai Hills Estate, Downtown Dubai, and Palm Jumeirah, driven by flexible payment plans and strong tourism and economic flows. In the commercial sector, the total value of transactions is likely to continue growing due to increased interest from international companies in expanding their presence in the emirate.

Read more: Future of the Dubai Real Estate Market

Imtilak Global's Tips for Those Wishing to Invest in Dubai Real Estate

If you are considering investing in the Dubai real estate market, here are some tips to keep in mind:

• Conduct thorough research: Before investing, it is important to conduct comprehensive research on the market, including the latest trends, regulations, and developments. This will help you make informed decisions and avoid potential risks.
• Seek professional advice: Consider seeking advice from a professional real estate company, agent, or financial advisor with experience in the Dubai market. They can help you navigate the market and provide valuable insights into investment opportunities.
• Define your investment goals: Take your investment goals into account, whether you are looking for long-term capital growth or rental income.
• Choose the right location: Dubai is a diverse city with a range of neighborhoods and developed areas. It is important to consider the location of the property you are interested in, including its proximity to transportation, facilities, and tourist attractions, as well as its potential for rental income or capital appreciation upon sale.
• Monitor market trends: Stay up-to-date with the latest market trends and developments in the Dubai real estate market. This will help you identify new investment opportunities and make sound decisions regarding your investment projects.

Imtilak Global: Your Distinguished Gateway to the Dubai Real Estate Market

If you aspire to enter the Dubai real estate market, Imtilak Global is the key gateway to achieving your ambitions. The company meets your aspirations and provides you with freehold services within the most luxurious residential projects in the most prestigious neighborhoods of global Dubai, in line with modern and contemporary lifestyles, with multiple options, stunning views, and spaces suitable for individuals and families, accompanied by all social and entertainment services. It is also your guide to owning commercial properties such as warehouses or offices, ensuring price offers that suit owners or investors.

For more information or inquiries, do not hesitate to contact Global Real Estate Company, real estate experts in the UAE.

Questions and Answers About the Dubai Real Estate Market

Edited by: Imtilak Global Real Estate Company©