2025 has been a defining year for the UAE’s real estate market as experts believe that the landscape is no longer driven solely by cyclical demand, but by long-term confidence, policy stability, and a rapidly evolving buyer base.
From record-breaking transactions and a wave in first-time homeowners to smarter, greener developments and infrastructure-led growth, the year marked a clear shift in how property is viewed across the Emirates. According to Porush Jhunjhunwala, Founder & CEO of Banke International Properties, these changes are laying the groundwork for a more mature, resilient market in 2026.
“In 2025, the UAE real estate market was shaped by several key developments. The first was record transaction growth and strong demand. Dubai’s total sales passed historic levels, reaching over Dh498.8 billion and more than 158,000 deals recorded in the first three quarters alone,” shared Porush.
Beyond the numbers, the growth mirrored deep-rooted confidence from both investors and end-users. Activity was spread across segments, specially the luxury villas to mid-market apartments, continuing to highlight healthy liquidity and broad-based participation rather than speculative concentration.
According to Jhunjhunwala, a defining trend of the year was the dominance of off-plan sales, supported by flexible payment plans and phased delivery timelines. These structures lowered entry barriers while appealing to buyers focused on long-term capital appreciation and lifestyle upgrades.
Equally important were policy reforms. Long-term residency options, including property-linked Golden Visas, repositioned real estate as more than an asset class. As he notes, these initiatives helped frame ownership as a pathway to long-term life planning in the UAE, especially for young professionals and global investors.
To delve depeer into the stats, according to a recent report released last month by fäm Properties, Dubai’s real estate market has reached an all-time high, with property sales for 2025 hitting Dh559.4 billion by the end of October, surpassing the previous full-year record of Dh522.1 billion set in 2024.
The report shows that October alone recorded 19,875 transactions worth Dh59.4 billion, bringing the year-to-date total to 178,244 deals. With two months still left in the year, 2025 is on track to become the busiest year ever for Dubai’s property market.
Meanwhile, apartments remained the dominant segment, with 16,238 sales totaling Dh31 billion in October, a 3.4% increase compared to the same month last year. Villa sales, however, fell 36.8% in volume to 2,549 deals worth Dh15.5 billion, while land sales surged, with 399 plots sold for Dh11 billion, marking a 23.9% rise year-on-year.
The commercial property sector showed the strongest growth, with 689 transactions valued at Dh1.9 billion, up 61.7% from October 2024. Meanwhile, the average price per square foot increased 6.7% to Dh1,692.
So given big numbers, what investors should watch in 2026?
Jhunjhunwala, shared, “Looking ahead to 2026, selective price adjustments are expected in some mid-market segments as new supply comes online.”
While headline growth may moderate in certain areas, this is expected to create strategic entry points for informed buyers. Luxury homes, branded residences, and villas, however, are likely to continue outperforming, supported by limited supply and sustained demand from high-net-worth individuals.
Technology will also play a larger role. Smart homes and PropTech-enabled features are increasingly influencing purchase decisions, particularly among international buyers seeking transparency, efficiency, and future-ready living spaces.
Wellness, sustainability & the shift in lifestyle priorities
Buyers are placing greater value on energy efficiency, walkable communities, green spaces, and overall quality of life. This shift is pushing developers to rethink design strategies, with eco-conscious masterplans and wellness-focused communities gaining strong traction. Returns remain important, but long-term liveability is now firmly part of the decision-making equation.
Visa reforms & the global buyer effect
Recent visa reforms have strengthened confidence among expatriates and international buyers,”Porush explains. Also that, clearer ownership laws and long-term residency pathways have widened the buyer pool beyond traditional investors. International professionals and younger expatriates are now entering the market earlier, viewing property ownership as both financial security and a lifestyle commitment.
Transparency, digital platforms, and easier transactions
Government-led digital reforms, escrow protections, and PropTech platforms have significantly simplified transactions. These measures have improved transparency, reduced risk, and strengthened buyer trust, making the UAE one of the most efficient real estate markets globally.
Lastly, with the new metro line coming up, Porush beleives “Transport infrastructure has historically reshaped preferences – as seen with the existing metro, where proximity has boosted values and rentability. The new metro line will likely continue this trend by enhancing connectivity to prime and emerging zones, broadening the appeal of transit-oriented communities and improving lifestyle convenience for commuters and families alike. Multiple analyses show that infrastructure upgrades consistently lead to re-prioritization of location decisions.”
As the UAE real market now moves into 2026, experts look forward to smarter, more inclusive, and firmly anchored in long-term fundamentals.
