Transactions up nearly 19%; values up 27% year-on-year as off-plan dominates market activity

Construction timelines cut by 37% since 2021

Dubai, 10 February 2026 – Dubai’s residential property market hit new all-time records in 2025, with more than 200,000 transactions totalling AED541.5 billion, says leading real estate advisory and property consultancy, Cavendish Maxwell.

Sales rose by almost 19% compared to 2024, with transaction values up 27%, according to Cavendish Maxwell’s 2025 Dubai Residential Market Performance Report, released today (10 February) at the company’s Dubai Real Estate Market Update event.

The off-plan segment continues to dominate sales activity, accounting for 73% of sales last year, up from 69% in 2024. Off-plan secured AED395.7 billion worth of sales – almost a third (32%) higher than the previous year.

Around 40,400 new residential units were delivered during 2025, against earlier predictions of 82,600. Some 110,500 units are forecast to be delivered this year, but, given historical completion rates, this figure may range from 33,000 to 50,000, according to the report.

Construction timelines have reduced by nearly 37% since 2021, as developers speed up construction work to trigger post-handover payments, says Cavendish Maxwell. Last year, units took an average 942 days (2.6 years) to complete, compared to 1,494 days (4.1 years) five years ago.

Ronan Arthur, MRICS, Director, Head of Residential Valuation at Cavendish Maxwell said: “After another record-breaking year, Dubai’s residential market is beginning to show signs of normalisation, with rising supply and slowing price growth pointing towards more balanced conditions in 2026. Performance will increasingly depend on absorption rates, buyer sentiment and the market’s ability to digest upcoming completions.”

Apartments dominate

More than 83% of off-plan sales were for apartments, up from 80% in 2024, with apartments accounting for nearly 88% of new project launches. While the total number of villa and townhouse sales grew, their market share was down from 19.3% in 2024 to 16.7% last year, driven by a slowdown in new projects.

Apartments also secured the majority of sales in the ready property segment, with nearly 82% of sales. 44,000 ready apartments were purchased last year, up from 42,400 in 2024. Ready townhouse and villa sales also rose to 6,400 and 3,600 respectively.

Top 5 locations

Jumeirah Village Circle and Business Bay took first and second place for both off-plan and ready apartment transactions in 2025.

In the off-plan segment 12,261 apartments were sold at JVC and 8,626 at Business Bay. Dubai South took third place (6,757), followed by Dubai Residences Complex (6,657) and Dubai Science Park (5,155). Meanwhile, 5,301 investors bought 5,301 ready apartments at JVC, 3,247 at Business Bay, 2,526 at Dubai Marina, 2,100 at Downtown Dubai and 1,832 at International City.

The top five location for off-plan villa and townhouse sales were DAMAC Islands (4,845), The Valley (2,936), Grand Polo Club and Resort (2,521), Dubai South (,621) and DAMAC Hills 2 (1,504). In the ready segments, DAMAC Hills 2 was top of the sales chart (1,066) followed by Al Furjan (610), Dubai South (512), The Springs (463) and Town Square (369).

The life of luxury

Dubai’s luxury and ultra-luxury property segment saw strong growth in 2025. Sales of luxury homes (worth AED20 million to 50 million) increased by more than 47% year-on-year, with 2,500 transactions – more than 70% of which were off-plan. Transactions for ultra-luxury homes (priced at AED50 million and above) also reached new highs, with nearly AED28 billion worth of sales across 302 properties – a 54% increase in values and 32% jump in volumes.

Sales and rental prices

Dubai residential property prices saw an average annual increase of 12.1% last year, reaching AED1,673 per square foot. However, the pace of growth moderated from 16.5% in 2024 and 17.6% in 2023, signalling a gradual cooling from the market’s peak momentum. Price rises varied across the city, with double-digit growth in Discovery Gardens, Dubai Marina, Arabian Ranches 2 and Dubai Hills Estate, while locations including Jumeirah Lakes Towers, Downtown Dubai, Dubai Creek Harbour and Business Bay all saw single-digit increases.

The cost of renting a home in Dubai rose by an average 11% in 2025 to just under AED76 per square foot, with the pace of growth easing from the 13-15% range recorded earlier in the year, reflecting a gradual rebalance in the market. Cavendish Maxwell expects further moderation as new supply comes to the market, giving tenants more options and reducing upward rent pressure.

Over 590,000 rental contracts were registered last year, with renewals accounting for nearly two-thirds.

Rental yields

Gross rental yields averaged 7% for apartments in 2025, with some areas commanding well over 8%. Top of the chart was International City at 8.9%, followed by Downtown Jebel Ali and Dubai Production City at 8.3%. DAMAC Hills 2, Dubai Silicon Oasis and Dubai Studio City secured 8.2%.

Rental yield for villas and townhouses averaged 4.8%, with wide variations depending on location. Yields reached almost 7% at Al Barari, 6% at Dubai Industrial City and 5.7% at DAMAC Hills 2 and International City.

Project deliveries

40,400 new properties were delivered in 2025 – less than the initial projection of 82,600, resulting in a materialisation rate of just under 49%. Despite lower-than-predicted deliveries, the figure was 16.4% higher than in 2024, when 34,700 units were completed.

Apartments made up most of the 2025 completions, accounting for 32,500 units, up 24% on 2024. By contrast villa and townhouse deliveries declined by nearly 7% to 7,900 units.

JVC, Arjan, Business Bay, Sobha Hartland and Dubia Creek Harbour accounted for 42% of all completions.

Upcoming Supply

685 new projects, with a combined 174,900 units, were launched in 2025 – equivalent to 479 per day. New projects were dominated by apartments, which accounted for nearly 88%. This trend highlights developers’ preference for apartments because of faster sales cycles and a broader appeal to investors and end users.

Around 110,500 units are projected for delivery this year, with the bulk of new properties hitting the market in Q4. Historical trends suggest that actual deliveries could be lower. Currently, around one third of the units in 2026’s delivery pipeline are in the early stages of construction (less than 25% completion) with one quarter reaching 75% completion or more, signalling potential delays.

A further 133,300 units are scheduled for 2027 and another 101,500 in 2028, with apartments representing more than 84%. JVC, Dubai South, Business Bay, Dubai Residential Complex and DAMAC Lagoons are expected to account for nearly a third of new supply across the two years.