Dubai's Real Estate Boom: Double Price Surge

Dubai's Real Estate Market Doubles in Five Years

Over the past several years, Dubai's real estate market has demonstrated dynamic growth that even surprised the most optimistic analysts. The average price per square foot has more than doubled in the past five years, reaching 1,683 dirhams by October 2025. This figure isn't just a statistical data point—it's indicative of the long-term trend that has made the emirate's residential property market one of the most attractive investment targets in the region.

Processes Behind the Price Increases

According to recent data from the Property Monitor, although price increases had become more moderate by October 2025—with only a 0.13% monthly growth recorded—the trend is still upward. The market is stepping into a more sustainable phase, where sharp price hikes give way to gradual stabilization.

This slowdown does not indicate a weakening. Rather, it shows that the property market, after an initial speculative momentum, is moving more toward long-term, predictable growth. Demand remains strong, and supply is dynamically following suit.

Record Number of New Projects in 10 Months

To meet the demand, Dubai's property developers are responding with unprecedented activity. During the first ten months of 2025, 532 new projects were launched, comprising about 131,504 new residential units. This quantity far exceeds what would have been considered an annual achievement previously. In October alone, 65 new projects started with over 14,000 residential units, with a combined value reaching 33.5 billion dirhams.

The vast majority of these projects—99%—offer apartments, while only 144 new units were introduced in the villa and townhouse segments. This indicates that the demand for multi-unit buildings is currently dominating the market.

Increase in the Number of Developers

The supply side is also expanding. In 2025, so far, 228 different developers have launched new projects, while during the same period last year, 163 developers were active. This number clearly shows the growing interest in the opportunities Dubai's real estate market presents.

Looking forward, analysts suggest that the supply is increasingly expected to comprise single-family homes (villa, townhouse), as several major developments are already in preparation. These include Emaar's new cluster at the Grand Polo Club and the revamped concept for The Heights and the first phase of Damac Islands 2.

Transactions: On the Verge of Another Record

Not only do prices and supply show strengthening, but the transaction volume also continuously reaches new heights. In the year-to-date, nearly 178,000 sales transactions have been registered, representing a 17.4% increase compared to the same period in 2024. This already accounts for 98% of last year's total annual transaction count.

Over the past year, there was an average of 17,300 transactions per month, with figures dipping below 15,000 in just two months. If the current pace continues, by the end of 2025, the total transaction count could reach or exceed 212,000, which would set a new annual record, marking the third consecutive year of breaking the previous year's peaks.

Signs of Normalization and Sustainability

Although the Dubai real estate market shows robust growth, the slowing pace of monthly price increases suggests the market has settled onto a healthier, more sustainable trajectory. According to analysts, this normalization is not a sign of weakening but rather the market's adaptation to the logic of long-term growth.

It's essential to highlight that the current activity is built not only on speculation but on genuine housing and investment needs. Changing regulations, new infrastructural investments, and Dubai's global appeal—be it in tax policies, quality of life, or business environment—continue to strengthen investor confidence.

Why Is Dubai Still Attractive?

Dubai remains one of the most dynamically developing cities in the Middle East, where the real estate market garners significant attention on both a local and international level. Tax-free income, high rental yields, political stability, and world-class infrastructure are all factors boosting demand.

The continuous growth of tourism, a calendar packed with events (like international sporting events, expos, and fairs), and resources invested in digitalization and sustainability attract new layers of investors.

Summary

By the end of 2025, Dubai's real estate market presents the image of a mature, stable market still capable of growth. The doubled prices per square foot, near-record transaction volumes, and the steep rise in the number of new projects and developers collectively affirm that Dubai remains one of the most attractive destinations for property investment—whether for personal use or yield generation. In the coming months and years, the market's structured expansion is likely to strengthen further, while demand is expected to remain consistently high.

(Source of this article: Based on the latest data from Property Monitor.)