Dubai real estate: New areas drive residential sales growth as buyers shift beyond popular areas

Emerging residential districts like Palm Jebel Ali, Dubai South and Dubai Maritime City are driving the next phase of the city’s property market expansion, as buyers and investors increasingly look beyond established locations including Business Bay and Jumeirah Village Circle (JVC).

According to data released by Metropolitan Premium Properties, Dubai recorded 200,780 residential transactions worth AED541.5 billion ($147.45 billion) in 2025, marking an 18.9 per cent year on year increase, based on figures from Property Monitor.

While areas such as Jumeirah Village Circle and Business Bay continued to lead by transaction volume, several newer districts recorded stronger growth.

Palm Jebel Ali recorded a 244 per cent increase in transaction volumes during the year, while Dubai Islands posted growth of 156 per cent. Other emerging areas showing strong gains included The Oasis at 132 per cent, Nad Al Sheba at 80 per cent, La Mer at 74 per cent, Dubai Water Canal at 69 per cent, Dubai Maritime City at 54 per cent and Dubai South at 30 per cent.

The data revealed that growth in these areas has been driven largely by off-plan activity, with investors positioning early in districts still under development and supported by long-term master planning.

Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties, said: “Investor demand is increasingly concentrating on large-scale, future-facing developments where infrastructure, lifestyle appeal and long-term supply dynamics support sustained growth.

“While waterfront locations have consistently attracted strong interest, we are now seeing heightened activity in new, large-scale coastal districts as buyers position themselves early in Dubai’s next phase of urban expansion.”

Ready and secondary market transactions continue to attract end users and buyers seeking immediate occupancy or rental income, while emerging districts are drawing investors focused on long-term capital growth.

Off-plan sales fuel market expansion

By transaction volume, Jumeirah Village Circle ranked first with 17,933 transactions at an average price of AED1,102,967 ($300,331.4), with off-plan deals accounting for 69 per cent. Business Bay followed with 11,874 transactions at an average price of AED2,341,979 ($637,707), with a 73 per cent off-plan share. Dubai South recorded 9,820 transactions at an average price of AED2,084,040 ($567,495.7), with off-plan accounting for 84 per cent.

Other high volume areas included Dubai Residence Complex, Motor City, Dubai Science Park, Dubai Production City, Jumeirah Village Triangle and DAMAC Islands.

The top five areas accounted for 26.1 per cent of all residential transactions. Off-plan transactions accounted for more than 75 per cent of total residential deals in 2025.

Marcus Andersson, Head of Sales – Off-plan at Metropolitan Premium Properties, said: “Off-plan remains the driving force of Dubai’s residential real estate market, accounting for over 75 per cent of total transactions in 2025 and this momentum is set to accelerate further.

“As major developers roll out large-scale projects in 2026 particularly in high-growth corridors such as Dubai South, Dubai Islands and new master-planned phases by Emaar and DAMAC we anticipate off-plan unit sales to rise by a further 10–15 per cent in 2026.”

Vasilieva added: “Dubai’s secondary market is set for steady, sustainable growth through 2026. Areas such as Dubai South, Dubai Hills Estate and Dubai Creek Harbour are increasingly attracting end-users and long-term investors, driven by airport-led development, improved connectivity and a growing focus on family-oriented communities. These emerging districts will be central to the next chapter of Dubai’s real estate story.”