“In the third quarter, Dubai’s residential property sector experienced a significant rise in off-plan sales, contributing to unprecedented transaction volumes and reinforcing the city’s position as a thriving real estate hub.”
“Dubai’s Residential Market Sees Surge in Off-Plan Sales During Q3 as Transactions Hit Record Levels”
“Dubai’s residential real estate sector maintained strong momentum in Q3 2025, led predominantly by off-plan sales. Cavendish Maxwell’s latest market report shows that total residential transactions rose to 55,300, reflecting a 17.1% increase compared to last year, driven by rising investor confidence and population growth.
“The off-plan sector emerged as the market’s dominant force, representing an impressive 76% of total residential activity. Transactions in this segment reached a record 42,000 deals, reflecting a 23.6% year-on-year increase and an 18.1% rise compared to the previous quarter, even as new project launches slowed. The report highlighted that the strong demand for off-plan properties persisted throughout Q3 2025 despite fewer new developments entering the market.”
Experts link the off-plan segment’s strong performance to flexible payment options and appealing developer incentives, which continue to attract both investors and end-users. According to the report, the market’s focus has shifted toward upcoming projects, largely driven by these factors. Initial sales by developers accounted for 93.9% of off-plan transactions, up from 90.3% a year ago, highlighting the ongoing appeal of buying directly from developers. Meanwhile, off-plan resales dropped to 6.1%, indicating a reduced interest from speculative investors who typically sell properties before completion.”
“In contrast to the surge in off-plan sales, the market for ready properties showed a more muted performance. Completed home transactions reached 13,300 deals, marking a 5.4% decline from the previous quarter and only a slight 0.6% increase compared to last year. This dip may reflect buyer sensitivity to pricing or a temporary market adjustment. The report warned that if this trend persists, it could signal a modest slowdown in the ready property segment.
“Apartments remained the most popular property type across both segments, especially in the off-plan market, where they accounted for 89.4% of sales, boosted by numerous apartment launches earlier in the year. Off-plan sales of villas and townhouses were more modest, while their proportion in the ready property market edged up slightly, driven by families looking for larger homes with outdoor spaces.”
“Even with varied activity across property segments, prices continued to climb. Residential sales values increased 4.5% compared to the previous quarter and 16.1% year-on-year, driven by robust demand from both local and international buyers. The report noted, however, that price growth was uneven across different areas, with some communities experiencing double-digit rises while others recorded more moderate gains.”
“On the supply front, around 9,400 units were completed in Q3, falling short of the forecasted 22,800 units and reflecting a realization rate of 41.3%. Total deliveries for the first nine months of the year reached 28,100 units, marking a 6% increase year-on-year. Notably, construction timelines have shortened considerably, averaging 880 days in 2025 compared to 1,340 days in 2023, indicating faster project completion.”
“Looking forward, the market is set to face a significant test, with 48,200 units expected in Q4 and around 366,000 units projected through 2028, most of which are planned for 2026 and 2027. Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell, noted, ‘Although this pipeline could raise concerns about oversupply, the situation is more balanced than it appears. It reflects a phase of healthy normalization in Dubai’s housing market rather than an impending imbalance.'”
“Even with potential supply pressures on the horizon, the market’s fundamentals remain strong. Dubai’s economy is on a growth trajectory, with GDP projections revised higher and the population anticipated to near 5 million by 2030. Alongside investor-friendly policies and ongoing infrastructure developments, these factors continue to support confidence in the market’s long-term stability.”
“Chief Economist Julian Roche summarized the market perspective: ‘The question of whether Dubai’s real estate would be driven more by potential oversupply or by global uncertainty leading investors to seek high-quality assets seems, at least for now, to have tilted toward the latter. Nonetheless, the next few years will challenge the durability of price growth as a significant volume of new supply comes to market.'”
“Currently, off-plan sales continue to lead Dubai’s property market, breaking new records and cementing the city’s reputation as a premier destination for global real estate.”
