The UAE property market is experiencing a transformative phase, with Dubai and Ras Al Khaimah (RAK) emerging as key drivers of growth. Dubai’s real estate sector achieved unprecedented milestones in Q3 2025, recording 59,228 property transactions worth Dh170.7 billion (\$46.5 billion), a 17.2% increase in volume and 19.9% rise in value compared to the previous year. Apartments dominated the market, with 49,370 units sold for Dh94.3 billion, reflecting a 25.9% year-on-year surge. Off-plan sales accounted for over 70% of transactions, fueled by flexible payment plans and investor confidence in Dubai’s development pipeline. Despite a 30% decline in villa sales, demand remains robust in lifestyle-focused communities, with average residential prices reaching a historic Dh1,664 per sq ft. A suburban shift is evident as rising rents in central areas push residents toward emerging zones offering affordability and modern amenities. Sustainability is also reshaping buyer preferences, with developers integrating green building practices and smart home systems. Dubai’s population surpassed 4 million in September 2025, and with nearly 9,800 millionaires expected to migrate to the UAE this year, demand for quality housing is projected to remain strong. Meanwhile, RAK’s property market surged 118% year-on-year, reaching Dh15 billion in total transactions. The ValuStrat Price Index rose 13.8%, with villas appreciating 15% and apartments 13.2%. RAK’s off-plan segment dominated, accounting for 85% of freehold sales, with over 3,000 units sold worth Dh6 billion. Mega-projects like the Wynn Al Marjan Island Resort and branded residences from Ritz-Carlton and Aston Martin are reshaping the luxury landscape. Mantra Properties’ Jacob & Co Residences, launched in collaboration with the luxury brand, registered over Dh300 million in sales within 12 hours, underscoring the UAE’s dominance as a hub for branded luxury living. As the UAE advances toward its 2030 vision, both Dubai and RAK are poised to benefit from infrastructure expansion, tourism growth, and investor-friendly reforms, solidifying the country’s position as a global real estate powerhouse.
UAE property market enters new phase of growth amid record sales and shifting buyer trends
