WHILE REAL ESTATE MARKETS IN CITIES LIKE LONDON, SYDNEY AND SINGAPORE CONTINUE TO COOL, DUBAI CONTINUES TO CHART ITS OWN COURSE
As trade tensions, rising financing costs, and geopolitical uncertainty continue to cool property markets across much of the world, Dubai’s real estate sector is moving in the opposite direction.
In the second quarter of 2025, Dubai reached another record for home sales, reaching nearly AED 152 billion (around $41 billion), a 46 percent increase over the same period last year. More than 50,000 transactions were recorded during the quarter, up 25 percent year-on-year, according to data from Betterhomes.
These numbers cap off what is now Dubai’s strongest first half on record, continuing the gains from the previous quarter.
Bucking Global Trends
This momentum is a contrast to trends seen in other global property markets, where a mix of trade tensions, elevated mortgage costs, and economic uncertainty has weighed heavily on buyer sentiment. In the United States, existing-home sales fell nearly 3 percent in June, hitting a nine-month low according to the National Association of Realtors. Meanwhile, London is facing its toughest housing market in over a decade, with asking prices falling and deals stalling, Rightmove data shows. Even resilient markets like Singapore and Sydney are beginning to show signs of a slowdown.
Dubai, however, is still gathering momentum.
“Population growth is steady, infrastructure continues to expand, and while more supply is coming online, demand is still outpacing it in most areas,” Harding said. He acknowledged that the months ahead could bring “more negotiation, more realistic pricing, and a little more competition, which, frankly, is no bad thing.”
Why Dubai Is Different
To understand what’s fuelling Dubai’s real estate boom, Rohit Bachani, co-founder of the family-owned brokerage Merlin Real Estate, says it helps to look at who’s actually investing. “In the past 24 months, we’ve seen an uptick in international buyers, especially from the U.K., India and Pakistan,” he said. “Europe and North America are growing rapidly too, particularly due to the Golden Visa appeal.”
Many of these clients are high-net-worth individuals and families, drawn by Dubai’s mix of lifestyle, infrastructure and long-term value. “Dubai is still seen as undervalued, and smart investors are paying attention,” Bachani said.
That view is shared across the market. At Betterhomes, demand from European countries like Poland, Ireland, France and Italy has surged, while demand from U.K. buyers rose 56 percent quarter-on-quarter.
The appeal, for many, lies in the numbers. In the U.K., a home worth AED 25 million (about $6.7 million) can generate over AED 6.4 million ($1.7 million) in taxes over a decade after stamp duties and rental income taxes are factored in. “In Dubai, there’s no capital gains tax, no property tax, no rental tax,” Bachani said. “It’s a no-brainer.”
Still, international demand is just one part of the story.
Nearly 45 percent of homebuyers in the second quarter were UAE residents, according to data from Dubai Land Department—a sign that demand is becoming more local. The figures also reflect a broader effort to convert renters into long-term homeowners.
There’s also a shift in who is buying. At Merlin Real Estate, Bachani says women now account for roughly a third of the firm’s buyers. “We’ve seen a lot of female investors coming in Dubai, be it single mothers, Gen Z [professionals] and retirees,” he said.
That trend is mirrored in official data. In the first half of 2025, more than 30,000 women accounted for nearly AED 73.2 billion ($19.9 million) in transactions—underscoring a growing face of wealth in Dubai’s real estate market.
What investors are buying
Apartments remain the cornerstone of Dubai’s housing market. Between April and June, more than 40,000 apartments changed hands, a 21 percent increase from the same period last year. Communities such as Jumeirah Village Circle, Business Bay and Dubai Marina continued to attract steady interest, particularly two-bedroom units, which remain a favorite among both investors and tenants.
Meanwhile, townhouses, are gaining ground – particularly on the secondary market. Activity for these types of homes have surged 66 percent year-on-year and over 20 percent since last quarter. Demand was strongest in Damac Islands, which accounted for nearly a third of all resale transactions, followed by the Grand Polo Club and Resort.
While mid-market sales remained strong, the sharpest gains were at the top. Dubai’s ultra-luxury sales more than doubled for properties priced above AED 15 million compared to a year ago. Much of that momentum came from the secondary market, which recorded over 1,150 transactions, marking a 137 percent year-on-year increase.
Luxury off-plan properties in Downtown Dubai and Palm Jumeirah continued to see strong interest. However, the most sought-after units came from the secondary market, where ultra-high-net-worth individuals gravitated towards homes in areas such as The Oasis, Palm Jebel Ali, The Acres and MBR City.
Looking Ahead
While global property markets continue to slow as buyers take a more cautious stance, Dubai appears to be charting its own course. With more than 70,000 off-plan units slated for delivery by year’s end, industry leaders say there’s little sign of momentum slowing.
In a moment when many global cities are hitting pause, Dubai is leaning in—fuelled not only by foreign capital, but by residents, families, and a new generation of buyers who see the emirate as more than a playground. For them, it’s becoming home.
