Engel & Volkers indicates that the demand was concentrated in commercial areas with transport networks and services, reflecting tenants' preference for reliable infrastructure, modern offices, and long-term operational stability. Dubai continues to attract companies, capital, and skilled professionals from around the world, supported by its political stability, competitive tax environment, world-class infrastructure, and clear long-term vision.Engel & Volkers Middle East, a company specializing in brokerage services for luxury residential and commercial real estate worldwide, has released its annual real estate market report for 2025, which highlighted this year as a pivotal milestone in the evolution of Dubai's real estate sector. The sector witnessed unprecedented levels in transaction volume and value, alongside a shift in market dynamics.Dubai's commercial real estate market delivered a strong performance in 2025, driven by business expansion, corporate office relocations, and strong and sustained demand from investors.Commercial property sales reached AED 135.6 billion with 13,175 transactions, led by the office sector, which recorded a 54.5% annual increase in transaction numbers, while the total sales value doubled. The results are expected to become more diverse rather than broadly outstanding, driven by location quality, infrastructure maturity, real estate developer efficiency, and long-term quality of life.Wealth migration continues to be a structural growth driver, especially in the luxury real estate market, enhancing Dubai's position as a global destination for high-net-worth individuals seeking stability, a comfortable lifestyle, and long-term capital preservation.The CEO of Engel & Volkers Middle East, Daniel Hadi, said: '2025 was a pivotal year for Dubai's real estate market, demonstrating exceptional growth and high reliability, and forming a turning point in the market's trajectory. Today, the market's maturity is evident with demand encompassing a wide range of end-users and investors in both established and emerging residential communities.'The growing interest in offices under construction reflects confidence in Dubai's commercial growth trajectory and the city's status as a regional business center.Investor and end-user confidence remained strong in 2025, with Dubai's residential sales market reaching record levels, with total transactions rising to 202,349, valued at AED 546.8 billion. The momentum was largely driven by apartment activity, which accounted for 83% of total transactions, while villas and townhouses maintained strong performance in many established and new residential communities, indicating the breadth and flexibility of market demand.The report also noted that off-plan transactions constituted 64.8% of total residential property sales in 2025, confirming investor confidence in Dubai's real estate projects.The company expects Dubai to kick off 2026 with strong activity, with the market transitioning from sharp acceleration to consolidating gains, increasing participation, and measured growth.
Dubai: Real Estate Market Growth in 2025
According to Engel & Volkers, Dubai's real estate market reached record levels in 2025. The commercial and residential sectors demonstrated unprecedented growth in transaction volume and value, solidifying the city's position as a global hub.