Dubai real estate market enters new era of end-user demand and community-led growth

The Dubai residential real estate market entered a new phase of maturity in 2025, shaped by end-user decision making, globally diverse investor activity and a clear shift toward community-led priorities, according to Banke International Properties’ year-end analysis.

The company said the patterns observed in 2025 point to sustained demand and evolving buyer expectations that will influence market behaviour through 2026.

Banke reported significant activity from GCC, Indian, UK and European buyers across both off-plan and secondary segments.

The first half of 2025 recorded more than AED431bn ($117.4bn) in real estate transactions across 125,538 deals.

Dubai real estate in 2025

By October 2025, total sales had already exceeded AED559.4bn ($152.2bn), reflecting continued confidence from end-users and international investors as Dubai’s population and economic diversification advanced.

Families continued to favour villa and townhouse communities such as Dubai Hills Estate, Arabian Ranches, Tilal Al Ghaf and Mudon, prioritising space, school access and lifestyle infrastructure.

Investors maintained strong interest in high-yield apartment corridors including JVC, Dubai Marina, Business Bay and JLT, where stable rental returns and high occupancy supported sustained demand.

Dubai’s long-term demand outlook remains robust, underpinned by expa inflows and expanding economic sectors. The Dubai Urban Master Plan 2040 projects the city’s population to reach 5.8m residents by 2040, reinforcing continued housing requirements across established and emerging communities.

Real estate analysis

Porush Jhunjhunwala, CEO of Banke International Properties, said: “2025 was the clearest indication yet that Dubai has entered a new era of real estate maturity. These decisions are being shaped by lifestyle, long-term value, and real demand rather than short-term speculation.

“Families are choosing communities that offer schools, green spaces, retail, and accessibility, while investors are gravitating toward developments with proven rental depth and stable yields.

“What we are seeing is not a spike in activity; it is the formation of a more balanced, fundamentals-driven market. Heading into 2026, the shift from momentum to sustainability will create opportunities across both districts and the upcoming corridors that are now benefiting from infrastructure, connectivity, and the UAE’s long-term economic agenda.”

Off-plan launches continued to dominate activity in areas such as Dubai Creek Harbour, Dubai South, JVC, Arjan and new phases of MBR City, supported by flexible payment plans and accessible price points. Off-plan absorption remained high across major master-developments through Q3 2025.

2026 forecast

Industry expectations indicate that 2026 will bring one of the largest handover pipelines in recent years, which may lead to price recalibration, particularly in mid-market segments.

This pipeline is supported by the volume of off-plan launches from 2023 to 2025.

Demand fundamentals remain strong, reinforced by continued population growth, expatriate residency reforms and national strategies such as We the UAE 2031 and the Dubai Urban Master Plan 2040.

Both frameworks emphasise long-term sustainability, liveability and housing diversification—factors that continue to shape market behaviour.