Dubai’s real estate market has displayed remarkable resilience and growth, achieving one of the most impressive August performances in its history. In August 2025, the city saw a staggering 18,678 property transactions, totaling a remarkable AED 51.1 billion ($13.9 billion), as reported by Provident Estate. This surge in activity highlights the increasing demand and optimism surrounding dubai real estate, making it an appealing option for both seasoned investors and newcomers alike.
These results not only underscore Dubai’s position as a global real estate hub but also highlight its continued growth compared to the same month in 2024.
The dynamic nature of dubai real estate continues to attract both local and international investors.
In addition to the observed growth, various factors contribute to the thriving dubai real estate sector, such as favorable government policies, infrastructural development, and a diverse economy that attracts a global audience.
Record-Breaking Sales and Mortgages
- Total sales: AED 51.1bn ($13.9bn), up 7.9% year-on-year.
- Transactions: 18,678, marking a 15.4% rise.
- Price per sq. ft.: AED 1,720 ($468), up 15.2% and setting a new benchmark.
- Mortgages: AED 21bn ($5.7bn), up 77.1% YoY – the strongest August ever for end-user financing.
Moreover, the rise in property transactions is indicative of a shift in buyer preferences, with many opting for luxury apartments and eco-friendly developments that promise higher returns in the long run.
This mix of rising sales values and historic mortgage activity shows both investor appetite and strong end-user demand.
What’s Driving the Market?
- Apartments: The clear winner, with 15,900 units sold, up 29.2% YoY, generating AED 30.2bn ($8.2bn). Apartments now account for 70% of all sales value.
- Villas: After peaking in 2024, villa sales dipped 38.1% to AED 10.9bn ($3bn), though prices still rose 12.7% YoY.
- Commercial real estate: AED 1.2bn ($327m) in deals, up 20.4%.
- Plots: Average prices surged 86.6% YoY, reaching AED 6.3m ($1.7m).
Interestingly, first-time sales dominated the market, making up 74% of transactions. Resale activity softened slightly but still contributed AED 16.9bn ($4.6bn), reflecting healthy liquidity.
The variety of choices available in the dubai real estate market—from lavish villas to modern townhouses—provides buyers with ample opportunities to find the ideal property that meets their needs and investment goals.
Dubai’s Rental Market Hits Record Levels
Rents are also surging, making Dubai one of the world’s strongest rental markets with attractive yields:
- Apartments: AED 85,000 ($23,140) average annual rent (+6.3%).
- Villas: AED 190,000 ($51,680) average annual rent (+8.6%).
- Commercial units: AED 62,900 ($17,100) average annual rent (+6.6%).
For investors, this means robust rental income alongside capital appreciation potential.
Hotspots Leading the Way
Business Bay and Jumeirah Village Circle (JVC) continue to dominate in transaction volumes. Meanwhile, emerging areas such as Jabal Ali First, Dubai Investment Park Second, and Wadi Al Safa 5 are gaining traction as new investment hotspots.
Long-Term Growth Story
Since 2021, Dubai’s August sales volumes have more than tripled, with 2025 marking the first time sales values crossed the AED 50bn milestone in a single August.
As Loai Al Fakir, CEO of Provident Estate, put it:
“Dubai’s real estate sector continues to set global benchmarks for performance and resilience. The surge in first sales, record-breaking mortgage volumes, and sustained rental growth reflect the city’s unique ability to attract both end-users and international investors.”
August 2025 vs. August 2024 Snapshot
| Indicator | Aug 2025 | Aug 2024 | Change |
|---|---|---|---|
| Total Sales | AED 51.1bn | AED 47.4bn | +7.9% |
| Transactions | 18,678 | 16,188 | +15.4% |
| Avg. Price/sq.ft. | AED 1,720 | AED 1,493 | +15.2% |
| Mortgages | AED 21bn | AED 11.9bn | +77.1% |
| Apartment Sales | 15,900 units / AED 30.2bn | 12,300 units / AED 23.4bn | +29% |
| Villa Sales | AED 10.9bn | AED 17.6bn | –38.1% |
| Commercial Sales | AED 1.2bn | AED 1bn | +20.4% |
| Avg. Plot Price | AED 6.3m | AED 3.4m | +86.6% |
Final Thoughts
Dubai continues to cement its status as a safe haven for investors and end-users alike. With record-breaking sales, soaring mortgage activity, and rising rents, the city’s real estate market remains one of the most resilient and attractive globally.
For investors, whether entering the market for the first time or expanding portfolios, Dubai offers a rare mix of strong yields, capital growth, and long-term stability.
