Dubai Real Estate Keeps Breaking Records While Other Markets Struggle

Dubai’s property market has just done something that seemed improbable even to the most bullish observers. By the end of October 2025, sales had already hit Dh559.4 billion, comfortably surpassing the full-year 2024 record of Dh522.1 billion with two entire months left on the calendar.

While London grapples with the steepest price drops in over two decades and American buyers get priced out by 7% mortgage rates, Dubai keeps accelerating in ways that demand explanation beyond just momentum or hype.

What the Sales Data Reveal About Dubai’s Market Strength

The five-year arc tells you everything about where this market has been and where it might be heading. Back in October 2020, Dubai recorded Dh6.8 billion in sales across 3,300 transactions, modest numbers for a market still shaking off pandemic disruption.

Jump to October 2025, and that same month delivered Dh59.4 billion across 19,875 transactions. That’s nearly nine times the value and six times the volume in just five years, the kind of exponential growth that suggests something fundamental has shifted in how global capital views the city rather than just cyclical recovery playing out.

Apartments led the charge with 16,238 transactions worth Dh31 billion, posting a 3.4% bump in volume year-over-year. That modest percentage increase actually matters more than it sounds because it shows sustained demand rather than speculative spike.

The real surprise came from land, where 399 plots sold for Dh11 billion, marking a 23.9% jump compared to last year. Land deals function as a leading indicator because they represent developers and investors committing serious capital to projects that won’t deliver for years, which only happens when confidence runs deep.

The commercial sector delivered perhaps the most striking number, with 689 transactions representing a 61.7% surge year-over-year, totaling Dh1.9 billion. Commercial real estate typically lags residential in recovery cycles, so this explosion signals that businesses are committing to physical presence in Dubai in ways that go beyond just riding out remote work experiments.

Price per square foot crept up 6.7% to reach Dh1,692, which sits in an interesting zone. It’s well above inflation but below the double-digit spikes that usually precede crashes, suggesting genuine demand is driving prices rather than panic buying.

Roughly 36% of the sales fell between Dh1 million and Dh2 million, 28% came in below Dh1 million, and 10% exceeded Dh5 million. This spread across the full spectrum from entry-level buyers to ultra-wealthy trophy hunters prevents the kind of concentration risk that makes markets fragile when sentiment shifts.

At the same time, geographic performance spread across Dubai’s expanding footprint rather than concentrating in one or two areas. Business Bay led in value with Dh3.2 billion from 1,177 transactions, capturing the premium that comes with proximity to business districts and waterfront views.

Why Dubai Thrives While Global Markets Face Headwinds

The transparency advantage has become more than just marketing talk.

Firas Al Msaddi, CEO of fäm Properties, points to how Dubai Land Department and DXBinteract have created “one of the world’s most transparent real estate ecosystems,” where buyers can verify ownership, check transaction history, and complete purchases with confidence that titles are clear and processes standardized.

This directly addresses concerns that keep institutional capital out of emerging markets where corruption and unclear ownership cloud everything.

The tax structure is probably the single most powerful force pulling global capital toward Dubai. Zero property tax. Zero capital gains tax. No personal income tax. Just a one-time 4% transfer fee when you buy.

Compare that to London where stamp duty can hit 15%, annual property taxes chip away at returns, and capital gains devour profits on exit. Or New York where property taxes never stop, state taxes take another bite, and federal capital gains claim their share. The math simply doesn’t work elsewhere for investors who can legally structure holdings in Dubai.

Moreover, geography has transformed Dubai into a genuine safe haven that attracts wealth flowing from every direction simultaneously. Russian capital seeking stability outside direct Western sanctions finds a home. Chinese investors diversifying beyond domestic markets facing regulatory whiplash discover an alternative.

European wealth escaping economic stagnation and rising fiscal pressure relocates. American capital pursuing international diversification lands somewhere that offers political stability, rule of law, and neutrality that few other markets can match.

At the same time, the visa programs amplify everything else by turning property purchases into lifestyle decisions rather than just financial ones. Law No. 7 of 2006 established clear foreign freehold ownership in designated areas, while Dubai Land Department’s e-services make transactions faster and more certain than many Western markets still grinding through paper processes that haven’t changed in decades.

The contrast with other global markets makes Dubai’s momentum even more remarkable. UK asking prices just posted their steepest July drop in over 20 years as stamp duty increases and economic malaise crushed sentiment. American markets are cooling as mortgage rates above 7% price out anyone who doesn’t have substantial cash.

European cities face affordability crises where local wages can’t support asking prices, creating political pressure for rent controls that frighten away the very investors those cities need.

Against this backdrop, Dubai’s combination of transparent governance, zero recurring property taxes, clear ownership rights, and efficient processes creates something that’s genuinely hard to match anywhere in the developed world.

What This Momentum Means for Investors and the Market’s Future

The sustainability question hangs over every conversation about whether this can continue. Analysts including Fitch have warned through Reuters that supply-driven price pressure could emerge in 2026 even as fundamentals look stronger than past cycles. The concern isn’t whether Dubai can build enough units, but rather whether demand can absorb delivery at the pace developers are promising.

Price per square foot currently sits at Dh1,692 after that 6.7% annual increase, which provides a useful benchmark going forward. If appreciation suddenly accelerates past 10% or 15% annually, that would flash warning signs about overheating. Stable or modest growth would suggest supply and demand remain reasonably balanced despite all the construction activity.

The mix of buyers looks healthier than purely speculative markets where 80% or 90% of transactions represent investors with no intention of ever occupying the units. When sentiment shifts in those environments, everyone rushes for the exits simultaneously and discovers there’s no liquidity.

Dubai’s current distribution includes substantial portions of actual end users buying primary residences or upgrading within the market, which provides more stable foundation than pure speculation ever could.

The comparison to 2008 matters because everyone remembers when Dubai property crashed by 50% to 60% and left carnage across the market. But the dynamics today look meaningfully different from that era. Pre-2008 featured minimal regulation, unclear foreign ownership, insufficient escrow protections, and speculation-driven pricing completely disconnected from incomes or fundamentals.

Today’s framework includes proper oversight through Dubai Land Department, mandatory escrow for off-plan purchases, clear ownership laws, and generally more measured appreciation that allows incomes and rents to keep reasonable pace with purchase prices.

These structural improvements won’t eliminate cycles entirely, but they should prevent the kind of catastrophic crashes that defined previous downturns. What you’re more likely to see is continued growth through 2026 at a decelerating pace as supply increases and easy gains get harvested, followed by consolidation where weaker projects struggle while prime locations hold value.

For investors entering now, the playbook should focus on established areas with genuine end-user demand rather than chasing the newest off-plan launches in untested locations. Avoid over-leveraged positions that depend entirely on continued appreciation to work out.

Maintain liquidity to take advantage of selective corrections that will inevitably create entry points in quality assets that get caught in broader selling when sentiment eventually shifts.