Dubai real estate: Villas, apartments, plots soar in 2025 amid AED86 billion capital gains

Dubai property market’s record-breaking performance in 2025 is signalling a new phase of market maturity, with strong investor returns and rapid industry expansion pointing to a shift beyond speculative activity, according to a leading luxury developer.

New data from DXBInteract shows that buyers generated AED86 billion in capital gains last year, alongside significant growth across all major property segments.

Capital gains were recorded across all asset classes in 2025. Apartment transactions generated AED19.7 billion in value, up 35.16 per cent year on year, while villa sales reached AED28.8 billion, marking a 66.83 per cent increase. Commercial property transactions rose by 80.14 per cent to AED3.4 billion, while plot sales saw the strongest growth, surging 155.13 per cent to AED34.1 billion.

The surge in activity was matched by a sharp expansion in the industry itself, with the number of registered Dubai real estate agencies rising by 39.7 per cent to 9,728, while licensed brokers increased by 34.5 per cent to 32,317.

Talal M. Al Gaddah, founder and chief executive of the Keturah luxury brand, said the figures reflect a deeper and more competitive market that is raising standards across the sector. “With greater choice, buyers compare more rigorously, brokers prioritise proven projects, and brand, delivery track record and product quality become decisive,” he said.

“In the luxury segment especially, abundance doesn’t drive volume; it drives selectivity, favouring developers that offer trust, differentiation and long-term value.”

The comments come as the final sales phase is launched at Keturah Reserve, a AED5.7 billion luxury residential master community developed by MAG at Mohammed Bin Rashid City’s District 7 in Meydan. Around 700 brokers from across the industry, including many newly registered agents, are expected to attend the launch event on Thursday.

The event is being held at the JW Marriott Hotel in Dubai and is organised by fäm Properties, which has been appointed exclusive master agency for Keturah Reserve.

Firas Al Msaddi, chief executive of fäm Properties, said the sector is moving towards greater collaboration. “We’re moving away from pure competition toward agencies and brokers working together to build a stronger market,” he said. “Sharing knowledge and resources creates a more transparent industry that benefits everyone.”

Keturah Reserve is a bio-living, wellness-focused community comprising 533 low-rise apartments, 93 townhouses and 90 villas. Townhouses are sold out, while more than 40 per cent of apartments are already committed. Handovers are scheduled to begin with townhouses in the second quarter of 2027, followed by apartments later in the year and villas in the first quarter of 2028.