Feb 23, 2026
Dubai’s residential real estate market recorded its strongest annual performance in 2025, reinforcing confidence as it enters 2026. Dubai’s real estate market continues its record-breaking momentum as the emirate’s population surpasses 4 million residents, reinforcing strong housing demand and investor confidence.
According to the latest data, Dubai crossed the four-million population milestone, a development that is already translating into increased property transactions and sustained demand across both rental and ownership segments.
Dubai Property Deals Top Dh900 Billion
Dubai’s property market recorded transactions approaching Dh900 billion in a record year. Dubai Land Department data shows property sales exceeded Dh680 billion in 2025 across more than 200,000 transactions, marking the strongest annual performance on record.
Total real estate transaction value, including mortgages and gifts, climbed to around Dh919 billion, highlighting the depth and liquidity of the Dubai real estate market.
This surge reflects steady engagement from both investors and end users rather than short-term speculative activity.
Population Growth Driving Housing Demand
Dubai added nearly 18,000 residents in a single month by the end of August 2025, driven by employment growth, business relocation and continued international migration.
The steady population growth is creating broad-based housing demand across multiple price points. Mid-income professionals are seeking apartments near employment hubs, while high-net-worth individuals are targeting prime waterfront and villa communities.
The prime residential segment also saw strong performance, with nearly 6,000 transactions above Dh10 million completed during the year. Limited supply in established prime locations, combined with ongoing wealth migration, has helped sustain both price and rental resilience.
Record Activity Signals Market Confidence
Market momentum strengthened significantly in the second half of 2025. The fourth quarter recorded the highest quarterly sales value ever, exceeding Dh187 billion. Three consecutive record months reflected consistent buyer engagement across the Dubai property market.
Industry experts note that population growth has become one of the most powerful drivers shaping housing demand in the emirate.
Lower Interest Rates Support Buyer Confidence
Financing conditions have begun to improve following recent interest rate reductions by the UAE Central Bank. Lower borrowing costs are expected to gradually ease mortgage expenses, improving affordability and supporting buyer activity in upcoming quarters.
Lower interest rates also enhance the relative attractiveness of property investment in Dubai, where rental yields remain competitive compared to global markets.
Supply Discipline to Shape the Next Phase
As Dubai’s population continues to grow, aligning supply with demand across locations and price ranges will become increasingly important.
The next phase of the Dubai real estate market is expected to be shaped by disciplined supply, infrastructure-led development and a continued focus on quality. These fundamentals position Dubai strongly as it plans for a population of nearly six million residents by 2040.
With population expansion, easing financing conditions and record transaction activity, confidence in Dubai’s residential property market remains firmly intact as the city moves further into 2026.
source: Gulf News