Dubai's Property Pulse: Mid-2025 Market Update

Dubai's real estate market has continued its impressive momentum into mid-2025, with both local and international investors showing growing confidence in the emirate's evolving property landscape. Backed by robust infrastructure projects, a booming off-plan segment, and favourable government incentives, the city is proving to be one of the most dynamic property hubs globally.

Strong Transaction Growth in H1 2025

As of the first half of 2025, Dubai recorded a remarkable 22.5% year-over-year increase in total real estate transactions. This translates to nearly 99,000 completed transactions, representing over AED 328.8 billion in combined sales volume. Notably, February alone saw 16,099 deals—a 35% increase from the same period last year—worth AED 51.1 billion.

Off-Plan Sector Dominates the Market

The off-plan property segment continues to lead the charge, accounting for over 56% of all transactions in Q1 2025. Developers are responding to demand by introducing flexible payment plans, including 1% monthly schemes, making homeownership more accessible and attractive to mid-income buyers. This strategy is particularly resonant with first-time investors and international buyers looking for long-term value and rental returns.

Infrastructure-Driven Growth

Major infrastructure investments are helping reshape Dubai’s real estate hotspots. One of the most anticipated projects is the Dubai Metro Blue Line, expected to complete by 2029. The new line is set to significantly boost the attractiveness and value of areas like Dubai Silicon Oasis, Mirdif, and Academic City, creating new corridors of investment potential.

In addition, Dubai’s skyline is undergoing a transformation with the construction of iconic skyscrapers, including the Burj Binghatti Jacob & Co. Residences and the soon-to-rise Burj Azizi, which will become one of the tallest buildings in the world. These projects not only signal Dubai’s architectural ambition but also reinforce its position as a luxury investment destination.

New Housing Supply to Balance Demand

The government and private developers are ramping up housing supply to meet growing demand. In 2025 alone, Dubai is on track to deliver 73,000 new residential units, with a goal of 300,000 homes by 2028. While this influx may alleviate some pricing pressure, it also ensures a healthy pipeline for both investors and end-users.

Market Outlook: Sustainable Growth with Cautious Optimism

While the momentum is strong, Fitch Ratings has recently issued a note of caution, forecasting a potential market correction of 10-15% toward late 2025 or early 2026. This is primarily due to oversupply concerns and natural market adjustments after several years of rapid growth. However, this correction is expected to be moderate and may present buying opportunities for savvy investors.

At the same time, new regulations and government-led schemes are making property investment more accessible. Initiatives that offer discounts and reduced fees for first-time buyers are encouraging broader participation in the market and supporting long-term sector health.

Final Thoughts: A Strategic Time to Act

Dubai's mid-2025 real estate environment presents a dynamic mix of opportunity, growth, and structural evolution. Whether you're an investor looking to capitalise on off-plan value, a buyer seeking your first home, or a developer watching macro trends, now is the time to reassess and position for long-term success.

At TBF Partners, we specialise in identifying high-yield opportunities across Dubai’s emerging and established neighbourhoods.

Ready to explore the future of Dubai property? Get in touch with us today.