Dubai’s real estate market is undergoing a significant transformation, transitioning from rapid expansion to a more measured, segment-driven growth phase, as revealed by Q3 2025 data. According to a report by Betterhomes, the city recorded 55,280 property transactions worth Dh139.7 billion, marking an 18% year-on-year increase in both volume and value. However, the market’s trajectory is far from uniform, with distinct trends emerging across different property types. Apartments, particularly off-plan units, emerged as the standout performers, with sales surging 35% quarter-on-quarter—the highest jump ever recorded. Studios and one- to two-bedroom units dominated 80% of apartment transactions, driven by investor demand for liquidity and rental returns. In contrast, the villa and townhouse segment experienced a downturn, with villa sales dropping 22% year-on-year and off-plan villa transactions plummeting 69%. Louis Harding, CEO of Betterhomes, noted that villas, especially off-plan ones, face pricing and design challenges that require recalibration. Meanwhile, Dubai’s rental market remained robust, with leasing transactions nearly doubling year-on-year (+92%). Apartments led the charge with a 42% quarter-on-quarter increase, while townhouses rose 36%. The average annual rent stood at Dh196,000, with apartments averaging Dh145,000. Investor activity continued to dominate, accounting for 63% of all purchases, up from 58% in Q2. Mortgage-backed transactions eased slightly to 51%, reflecting a balanced buyer mix. Christopher Cina, Director of Sales, highlighted the market’s strength and depth, with volumes surging 11% despite a 6% dip in values from Q2 highs. The average price per square foot reached Dh1,664, nearly double the 2020 level. Over 28,500 units were delivered in 2025, with 250,000 more scheduled through 2027, underscoring Dubai’s long-term development momentum. As Q4 begins, the market is expected to focus on mid- to upper-mid products, particularly apartments, while luxury property transactions show signs of pause. Harding concluded that the market’s narrative is shifting from runaway growth to realignment, with Q4 set to test the stability of these trends.