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Since the beginning of 2021, the Dubai real estate market has experienced an unprecedented boom. The emirate has become even more attractive to foreign investors. What happened? Property prices have risen almost fourfold, and the volume of transactions has reached historic highs. Economic recovery after the pandemic, an influx of investors, and visa policy reforms are the main factors cited by experts.
Analysts report that the total value of transactions for the first nine months of 2025 amounted to 499.1 billion dirhams (about $136 billion). This figure is 380% higher than in the same period in 2021, when it barely exceeded 104 billion dirhams. The number of transactions also increased sharply — from 43,200 to 158,400, i.e., an increase of 267%. Thus, the average monthly sales volume reached 17,600 transactions worth 55.46 billion dirhams, which is significantly higher than the figures for 2024.
What is particularly impressive is the growth in the apartment segment. Their value jumped by 452%, from 43.6 billion to 240.5 billion dirhams, and the number of transactions increased by 339%. The growth is not limited to apartments. The value of villa sales increased by 302% to 162 billion dirhams, with transactions growing by 144%. Land plots rose in price by 379%, and commercial real estate by 414%. These figures tell us that prices per square meter have really skyrocketed. The ValuStrat Price Index (VPI) for villas rose by 195% compared to the post-pandemic low, and for apartments by 80%. In September 2025, the VPI reached 230.6 points, with a monthly increase of 1.4%.
There are several factors behind this boom. After COVID-19, Dubai quickly recovered its economy thanks to government incentives and simplified visas for residents. The emirate's population is growing, attracting families and wealthy individuals who prefer spacious villas. Young professionals and expats are choosing apartments in central areas. Foreign investors, especially from Europe and Asia, see Dubai as a stable asset: there are no taxes on rental income, and rental yields reach 5-8%. In addition, developers offer flexible payment plans for properties under construction, which account for 80% of sales.
Prestigious areas have become the leaders in price growth. Among villas, Jumeirah Islands leads with an annual increase of 39%, followed by Palm Jumeirah (39%) and Green Community West (26%). For apartments, Remraam (22%), Dubai Silicon Oasis (22%), and The Greens (22%) are the top performers.
Jumeirah Village Circle, Business Bay, and Dubai Marina are also in high demand, with record transaction volumes. The ultra-premium segment is also doing well: in September, 31 transactions worth over AED 30 million were registered, including properties on Palm Jumeirah and in Dubai Hills Estate.
Experts are optimistic in their forecasts, but cautious. Firas Al Msaddi, head of fäm Properties, notes: “Price growth is outpacing the number of transactions in all segments, which speaks to the depth and stability of the market. This is ideal for investors seeking long-term stability.” What are the analysts' forecasts? A further 10% increase in off-plan sales by the end of the year, but a slowdown is possible due to the introduction of 42,000 new housing units. Villas and luxury properties will remain in the lead due to limited supply, while the mid-range segment may stabilize.
This trend makes Dubai an attractive option for global capital investment. However, according to experts, investors should carefully study the market to avoid overvaluation. Overall, the emirate confirms its status as one of the most dynamic real estate markets in the world.
