betterhomes’ report, Shaping Skylines: Dubai Residential Market Report Q3 2025, reveals a market in selective ascent rather than straight line growth. It marks a transition from the exceptional highs of early 2025 to a more balanced phase, underpinned by solid economic fundamentals and expanding supply.
BH-Market Report Q3
Dubai’s residential real estate market continued to demonstrate its strength and resilience in Q3 2025, recording 56,015 transactions worth AED 138.3 billion. Despite a 6.4% dip in value quarter-on-quarter, total sales volume surged 11.4%, underscoring sustained demand and investor confidence across key segments.
Apartments and off-plan stay in front
Apartment sales soared to AED 93 billion this quarter, marking the highest value ever recorded in Dubai’s residential market. Volumes climbed 22% to 48,646 units, driven largely by off-plan apartment sales, which jumped 35% quarter-on-quarter. Off-plan transactions accounted for 70% of total sales volume and 59% of value, the strongest contributions on record. This trend highlights robust investor confidence and an active wave of new project launches across the city.
Villas and townhouses recalibrate
Following an exceptional first half, villa and townhouse transactions eased 30% QoQ, and values declined 34% QoQ, a natural post-rally adjustment as launches paused and buyers became more selective. Demand for larger family homes remains healthy in established and lifestyle-led communities.
Dubai’s property market is experiencing selective ascent rather than straight-line growth. Sales volume and value rose 18% year-on-year, reaching 56,015 transactions worth AED 139.7 billion, anchored by off-plan sales. Demand is tilting decisively toward new supply, particularly apartments, where deals jumped 28% year-on-year. By contrast, villas cooled and prime transactions eased 48% QoQ, suggesting a moment of pause rather than panic,” says Louis Harding, CEO at betterhomes
Record prices and expanding supply
Dubai’s average residential prices reached a historic high of AED 1,664 per sq ft, nearly double 2020 levels. This 5.2% quarterly rise was fueled by end-user demand, liquidity in mid-market communities, and favourable global conditions, including the U.S. Federal Reserve’s 25-basis-point rate cut that boosted affordability for international investors.
Supply also strengthened, with over 28,500 units delivered so far in 2025 and more than 200,000 units expected by 2027. Apartments made up 85% of Q3 handovers, led by Jumeirah Village Circle, Business Bay, and Town Square.
Inside betterhomes’ own metrics
betterhomes saw 24% year-on-year increase in transactions and 38% growth in sales leads. In contrast to the broader Dubai property market, townhouse demand led the surge, up 91% YoY, alongside a 12% growth in villas and 5% in apartments. Investor activity climbed to 63% of total buyers, reflecting Dubai’s growing appeal as a global investment hub.
In the rental sector, leasing transactions at betterhomes soared 92% year-on-year and 29% quarter-on-quarter, underscoring the city’s enduring rental demand. Average annual rents stood at AED 196,000, with apartments accounting for the majority of leasing activity.
Outlook for Q4 and beyond
As Dubai moves into the final quarter of 2025, the market is expected to maintain its steady trajectory. The combination of sustained population growth, infrastructure expansion, and global investor interest continues to reinforce Dubai’s position as one of the world’s most dynamic and resilient property markets.