Dubai Real Estate Sales Surge 13% to $10.9bn in August as Population Surpasses 4 Million

Dubai’s real estate market continued its upward momentum in August 2025, recording sales worth AED40 billion ($10.9bn), a 13.2% increase year-on-year. The growth was fueled by strong off-plan launches, steady secondary sales, and population growth that pushed the emirate past the four million resident milestone.

Over the course of the month, the city registered 16,993 residential transactions, reflecting the depth of investor confidence and end-user demand across Dubai’s communities.

Off-Plan Dominance and Secondary Market Strength

The off-plan segment once again took the lead, with 12,917 transactions valued at AED28.3bn ($7.7bn). This represented a 22.1 percent increase in volumes, underlining investors’ appetite for Dubai’s future-ready developments.

Meanwhile, the secondary market remained resilient, contributing 4,076 transactions worth AED11.7bn ($3.2bn)—a 5.8 percent year-on-year rise. This balance between off-plan and ready homes highlights both investor optimism and the trust end-users place in established neighborhoods.

“Dubai’s real estate market continues to demonstrate balance. Off-plan sales highlight investor appetite for the city’s future, while steady activity in the secondary segment reflects the trust end-users place in established communities,” said Farooq Syed, CEO of Springfield Properties.

Communities Leading the Market

Among the most active areas in August were Business Bay, Jumeirah Village Circle, and Damac Riverside, which saw particularly strong transaction volumes. Premium districts including Dubai Hills Estate, Sobha Central, and Dubai Maritime City continued to command solid pricing, reflecting the sustained appeal of high-quality, centrally located properties.

Commercial Sector Insights

Dubai’s commercial real estate market also performed steadily, recording 1,273 transactions valued at AED8.12bn ($2.2bn). Land sales accounted for the majority, with AED4.62bn ($1.26bn) in transactions, underscoring developers’ ongoing focus on shaping the emirate’s future supply pipeline.

Other commercial activities included AED894 million in office sales, AED485 million in retail properties, AED322 million in hotel apartments, and AED311 million in whole buildings, while warehouses, workshops, and labor camps contributed a further AED1.49 billion.

However, the sector also faces challenges. Rising prices in prime locations are putting pressure on developers’ resources and raising concerns about the affordability of commercial spaces for businesses.

The Dubai real estate sector saw $5.2bn of transactions and 4,640 sales last week

Rental Market Resilience

The rental market mirrored the sales sector’s strength, with 12,181 leases signed in August, generating AED1.1bn ($300m). Established districts such as Jumeirah, Nad Al Sheba, and Zaabeel recorded the strongest growth, while family-friendly communities like Town Square and Dubai Silicon Oasis continued to attract tenants seeking a balance of affordability and lifestyle amenities.

Population Growth Driving Demand

Population growth has been a key driver of real estate momentum. Dubai’s population rose from 3.86 million in January to 4.0 million in August 2025, marking a 3.6 percent increase in just eight months. This expansion is underpinned by the Dubai 2040 Urban Master Plan, long-term residency reforms, and the steady inflow of high-net-worth individuals.

Government initiatives, such as the First-Time Home Buyer Scheme, are also broadening demand, making growth more sustainable across different segments of the market.

“As Dubai surpasses the four-million resident mark, investor sentiment remains highly positive. With liquidity, new launches, and demographic momentum aligned, the market is well positioned for continued resilience,” Syed concluded.

Conclusion

August’s real estate performance underscores Dubai’s position as one of the world’s most dynamic property markets. With off-plan launches fueling growth, secondary sales maintaining stability, and rentals thriving alongside population expansion, the city’s property sector is evolving in a balanced and sustainable way. Supported by government initiatives and investor confidence, Dubai remains on track for long-term, strategic growth in the years ahead.