Dubai property transactions up 26% in first half as more tenants convert to buyers

Dubai’s real estate sector experienced a sharp upswing in both volume and value of transactions in the first half of 2025, driven by the entry of over 59,000 new investors, including many residents.

According to data from the Dubai Land Department (DLD), a total of 125,538 property transactions were recorded – a 26% increase from the 99,947 transactions during the same period last year.

The total value of these deals reached Dh431 billion ($117 billion), reflecting a 25% year-on-year rise, as reported by the Dubai Media Office, underscoring the market’s continued strength and investor interest.

During the same timeframe, Dubai logged more than 1.3 million real estate procedures, including sales, leases, and other transaction types.

The city attracted 94,717 investors, marking a 26% increase, with 118,132 investments worth around Dh326 billion. Of these, 59,075 were new investors, whose investment value surged 40% to Dh157 billion.

Notably, UAE residents made up 45% of these new investors — a testament to the success of government efforts to convert renters into property owners and enhance long-term market stability.

The real estate boom is backed by initiatives such as long-term residency for retirees and remote workers, the 10-year golden visa programme, and broader economic diversification strategies.

Further boosting the market, a new scheme was introduced this month to support Emiratis and residents who don’t own freehold property in Dubai. This initiative gives first-time buyers priority access to new and existing homes, offers discounted prices, flexible payment options, and better mortgage terms, including reduced fees and faster approvals. It covers properties priced up to Dh5 million, with 5,000 new investors expected to benefit this year.

In terms of investment origins, foreign buyers contributed Dh228.35 billion, with Arab investors adding Dh28.4 billion, and Gulf-based investors accounting for Dh22.56 billion.

By transaction volume, Al Barsha South Fourth led with 10,469 deals, followed by Al Yalayis 1 (7,595) and Wadi Al Safa 5 (7,178). Other top areas included Business Bay, Dubai Marina, and Airport City.

In terms of value, Dubai Marina ranked highest with Dh25.1 billion, followed by Business Bay (Dh22.5 billion), Burj Khalifa (Dh17.1 billion), and Palm Jumeirah (Dh16.96 billion) – illustrating the concentration of luxury investments in iconic communities.

Other high-value areas included Al Yalayis 1, Meaisem Second, Wadi Al Safa 5, and Mohammed Bin Rashid Gardens, each recording over Dh14 billion in deals.

Dubai’s ultra-luxury market also saw record-breaking performance. According to Knight Frank, sales of $10 million-plus properties reached $2.6 billion in Q2 2025, marking a 37% jump from the previous quarter and a 63% increase year-on-year. The period recorded 143 ultra-prime deals, including 22 transactions above $25 million, reinforcing Dubai’s position as a global hotspot for high-net-worth buyers.

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