Dubai Residents Turn Buyers as Home Deals Surge to Dh138 Billion in Q3 2025
Dubai’s property market continues to accelerate, but this time the boom is being fueled not just by investors — it’s being powered by residents turning into homeowners. The latest reports from Espace Real Estate and Property Finder reveal a notable shift in the emirate’s real estate dynamics, with more UAE residents choosing to buy homes to live in rather than to rent or resell. The Q3 2025 data paints a picture of a maturing market driven by genuine end-user demand, strong off-plan activity, and the steady rise of family-oriented communities.
Dh138 Billion in Residential Deals Reflects Market Liquidity
According to Espace Real Estate’s Q3 2025 Residential Market Overview, Dubai recorded Dh138 billion in residential sales across 55,280 transactions during the quarter — an 18% increase compared to Q3 2024. The report highlights a balanced mix between off-plan (70%) and ready (30%) property sales, reflecting sustained appetite across all buyer profiles. Espace noted that “the market continues to show strength and depth,” signaling resilience in both primary and secondary segments.
Communities such as Dubai South, Business Bay, and Jumeirah Village Circle (JVC) led the way in off-plan activity, buoyed by developer-friendly payment structures and an influx of branded residences. Meanwhile, waterfront projects in Dubai Creek Harbour and Palm Jebel Ali continued to attract investors seeking high-end coastal properties.
Family-Friendly Communities Dominate the Market
Dubai’s family communities are seeing some of the strongest appreciation rates in years. Prices rose in 31 of the 34 areas tracked by Espace, with villas remaining the top-performing segment. Emirates Living, Arabian Ranches, and Jumeirah Park all registered double-digit price gains. Jumeirah Islands led the rally, with villa prices up an impressive 22% year-on-year.
Palm Jumeirah retained its crown as Dubai’s most expensive community, where average villa prices surpassed Dh5,000 per square foot. Other high-demand villa neighborhoods like The Meadows and Jumeirah Golf Estates also witnessed rising transactions, driven by long-term families seeking space, greenery, and community infrastructure.
Shift Toward Long-Term Homeownership
Both Espace and Property Finder point to a significant behavioral shift in the buyer base. More residents now view Dubai as a permanent home rather than a short-term investment opportunity. Nearly 60% of buyers in October 2025 were UAE residents, many of them first-time homeowners taking advantage of flexible payment options and stabilized rental prices.
Popular choices among first-time buyers include JVC, Dubai Hills Estate, and Damac Hills 2, which combine affordability, family-oriented amenities, and accessibility. “We are witnessing a behavioural shift — buyers are no longer looking at Dubai as a short-term opportunity but as a long-term base,” Espace commented.
Rents Stabilize as Supply Expands
After two years of relentless rent hikes, Dubai’s rental market is finally showing signs of equilibrium. According to Property Finder, rental activity has plateaued across central zones like Downtown Dubai, Dubai Marina, and JVC, where new supply has entered the market. Many tenants are choosing to buy rather than renew leases, especially in suburban areas offering better value, such as Mudon, Arabian Ranches 3, and Dubai South.
Mid and Luxury Segments Continue to Thrive
The AED 5–10 million price bracket has emerged as the fastest-growing segment, up 60% year-on-year. While the luxury market remains robust, the upper-mid tier is where activity is most pronounced. Dubai Hills Estate, Palm Jumeirah, and Tilal Al Ghaf continue to lead in luxury sales, while communities such as JVC and Al Furjan attract stable mid-tier buyers looking for long-term value and convenience.
Market Outlook: Stable Growth Through Early 2026
With interest rates easing and developers launching new off-plan projects, the final quarter of 2025 is expected to remain active. Espace forecasts continued transaction growth into early 2026, supported by population expansion, investor confidence, and Dubai’s enduring appeal as a tax-free, high-quality lifestyle hub. The emirate’s maturing real estate ecosystem now balances speculative energy with genuine end-user participation, creating a more sustainable growth trajectory.
For UAE residents contemplating property ownership, the timing may be ideal. Prices are still rising, but the combination of rent stability, flexible developer incentives, and expanding housing options presents a window of opportunity. Dubai’s evolution from a speculative market to a genuine home for its residents signals the next chapter in its real estate story — one defined not just by record numbers, but by lasting community value and belonging.
Explore more about Dubai’s evolving property trends and find your ideal home with Aurantius Real Estate.
