With over 131,000 new units launched this year alone, Dubai’s real estate market breaks records again—but growth is showing signs of stabilising.
If you bought property in Dubai five years ago, your asset has likely performed exceptionally well. According to the latest data released by Property Monitor, the average price per square foot in Dubai has more than doubled since 2020, reaching a record Dh1,683 per sqft in October 2025.
However, while the long-term trend points upwards, the frenetic pace of growth is shifting. October saw a modest monthly price increase of just 0.13 per cent, a clear signal that the market is moving from rapid expansion toward a period of measured normalisation.
The “Supply Tsunami” of 2025
Perhaps the most staggering figure from the October report is the sheer volume of new inventory. Developers are launching projects at a pace that far exceeds historical norms.
- Projects Launched (Jan–Oct 2025): 532
- Units to Market: 131,504
- Active Developers: 228 (up from 163 in 2024)
In October alone, 65 new launches introduced over 14,000 residential units valued at Dh33.5 billion. Apartments continue to dominate the pipeline, accounting for 99 per cent of this new supply.
Major players like Emaar (Grand Polo Club, The Valley), Damac (Damac Islands 2), and Wasl (Jumeirah Golf Estates expansion) are leading this charge, confident that the market can absorb this new inventory.
Transactions Are Smashing Records
Despite rising prices, buyer appetite remains voracious.
Year-to-date transaction volumes have hit nearly 178,000, marking a 17.4 per cent increase compared to the same period in 2024. In fact, by October, the market had already surpassed 98 per cent of last year’s entire annual total.
Monthly activity has averaged around 17,300 transactions, with only two months dipping below the 15,000 mark. Property Monitor projects that if this momentum holds through December, total sales for 2025 will exceed 212,000, extending Dubai’s record-breaking run into its third consecutive year.
What Does This Mean for Investors?
The data suggests a maturing market. The “wild” monthly gains of previous years are being replaced by steady, sustainable growth.
- For Buyers: The massive influx of 131,000+ units means more choice. As supply increases, price growth naturally tempers, potentially offering more negotiating power in the off-plan market.
- For Sellers: Activity is historically high, making it a liquid market. However, with price growth slowing to 0.13%, realistic pricing is key to securing a sale.
Key Takeaway
The boom isn’t over, but it is changing. Prices have doubled in five years, but the rate of growth is slowing as a record-breaking 131,504 new units hit the market. With transaction volumes set to smash 2024 records, Dubai is transitioning into a phase of high activity but stable pricing.
Frequently Asked Questions (FAQ)
Q: Are Dubai property prices going to drop in 2026? A: While price growth is slowing (0.13% in October), transaction volumes remain at record highs. The market is stabilising rather than crashing, though the high supply of new units will likely keep price rises moderate.
Q: Is it better to buy ready or off-plan in 2025? A: Off-plan continues to dominate, accounting for 99% of new supply in October. However, ready properties offer immediate rental income, which is attractive given current high rental yields.
Q: Can I get a residency visa if I buy property? A: Yes. Investing AED 750,000 makes you eligible for a 2-year Investor Visa, while a property worth AED 2 million+ makes you eligible for the 10-Year Golden Visa.
JobXDubai 
Leave a comment