Dubai’s luxury real estate sector is showcasing remarkable resilience and strategic evolution in the third quarter of 2025. According to the latest Q3 2025 Market Report by betterhomes, the market recorded 737 luxury property transactions, each priced at AED15 million and above.
The breakdown reveals 492 secondary sales and 245 off-plan transactions, underscoring continued investor confidence in Dubai’s long-term real estate potential. Despite a natural recalibration from previous record-breaking quarters, transaction volumes remain significantly above the city’s historical average.
Market Dynamics and Performance
Louis Harding, CEO of Betterhomes, emphasized the market’s transition: “Dubai’s luxury real estate market is moving from hypergrowth to healthy stabilization. Prices remain strong, international buyer demand is steady, and quality continues to drive decisions at the top end of the market.”
Top-performing luxury communities in secondary sales included The Oasis, Dubai Hills Estate, and Palm Jumeirah, while off-plan transactions were led by Jumeirah, Palm Jumeirah, and Downtown Dubai.
Broader Market Context
The overall residential real estate market demonstrated continued strength, recording 56,015 transactions worth AED138.3 billion ($37.66 billion). Apartment sales reached a record AED93 billion ($25.32 billion), with 48,646 units sold—a 22 percent increase driven largely by off-plan sales.
Key market indicators suggest sustained growth:
- Average residential prices reached a historic high of AED1,664 per sq ft
- Off-plan transactions accounted for 70 percent of total sales volume
- Over 28,500 units delivered in 2025, with 200,000 units expected by 2027
Future Outlook
As Dubai enters the final quarter of 2025, the real estate market is expected to maintain its steady trajectory. Continued population growth, infrastructure expansion, and global investor interest reinforce the city’s position as a dynamic and resilient property market.
The market is on track to potentially exceed its record full-year value of $152.3 billion, demonstrating remarkable economic adaptability and investor appeal.
