MARKET ANALYSIS
Dubai Real Estate Market Shows Strong Q4 Performance
Sarah Mitchell
January 2, 2026
# Dubai Real Estate Market Shows Strong Q4 Performance
Dubai's real estate market concluded 2025 with exceptional performance, with off-plan sales reaching unprecedented levels in the fourth quarter.
## Record-Breaking Sales
The Dubai Land Department reported over 38,000 off-plan transactions in Q4 2025, representing a 22% increase year-over-year. Total transaction value exceeded AED 54 billion ($14.7 billion), driven by strong investor confidence and attractive developer offerings.
## Key Market Drivers
### Economic Fundamentals
- GDP growth of 3.8% in 2025
- Strong tourism recovery
- Expanding business ecosystem
- Favorable tax environment
### Developer Activity
Leading developers launched 45 new projects in Q4, offering diverse options from affordable apartments to ultra-luxury villas. Extended payment plans and competitive pricing attracted both local and international buyers.
### International Investment
Foreign investment accounted for 65% of off-plan purchases, with buyers from India, UK, Russia, and China leading demand. The UAE's golden visa program continues to drive long-term investment interest.
## Price Trends
Average prices for off-plan properties increased 8% in Q4:
- Dubai Marina: $850-$1,200 per sq ft
- Downtown Dubai: $1,100-$1,800 per sq ft
- Dubai Hills Estate: $550-$850 per sq ft
## 2026 Outlook
Analysts forecast continued market strength with:
- 15-20% price appreciation expected
- Over 150,000 new units planned for launch
- Increased institutional investment
- Sustained international buyer interest
The market's fundamentals remain solid, supported by economic diversification, infrastructure development, and progressive regulations.
Dubai's real estate market concluded 2025 with exceptional performance, with off-plan sales reaching unprecedented levels in the fourth quarter.
## Record-Breaking Sales
The Dubai Land Department reported over 38,000 off-plan transactions in Q4 2025, representing a 22% increase year-over-year. Total transaction value exceeded AED 54 billion ($14.7 billion), driven by strong investor confidence and attractive developer offerings.
## Key Market Drivers
### Economic Fundamentals
- GDP growth of 3.8% in 2025
- Strong tourism recovery
- Expanding business ecosystem
- Favorable tax environment
### Developer Activity
Leading developers launched 45 new projects in Q4, offering diverse options from affordable apartments to ultra-luxury villas. Extended payment plans and competitive pricing attracted both local and international buyers.
### International Investment
Foreign investment accounted for 65% of off-plan purchases, with buyers from India, UK, Russia, and China leading demand. The UAE's golden visa program continues to drive long-term investment interest.
## Price Trends
Average prices for off-plan properties increased 8% in Q4:
- Dubai Marina: $850-$1,200 per sq ft
- Downtown Dubai: $1,100-$1,800 per sq ft
- Dubai Hills Estate: $550-$850 per sq ft
## 2026 Outlook
Analysts forecast continued market strength with:
- 15-20% price appreciation expected
- Over 150,000 new units planned for launch
- Increased institutional investment
- Sustained international buyer interest
The market's fundamentals remain solid, supported by economic diversification, infrastructure development, and progressive regulations.