Dubai Real Estate Market Hits AED 63.6 Billion in July Sales, Driven by Off-Plan Surge and Corporate Tax Incentives

Real Estate

Dubai Real Estate Market Hits AED 63.6 Billion in July Sales, Driven by Off-Plan Surge and Corporate Tax Incentives

Dubai’s real estate sector continued its robust performance in July 2025, recording AED 63.6 billion in property sales, according to new data released by Property Finder, the region’s leading real estate platform. The market posted a 27% year-on-year increase in value and a 24% rise in transaction volume, highlighting sustained momentum across both the off-plan and secondary market segments.

A key catalyst behind this growth has been the UAE Ministry of Finance’s new Ministerial Decision introduced in July. The decision permits corporate tax deductions on investment properties held at fair value, aligning with international accounting standards and offering investors depreciation benefits based on current market prices rather than historical cost. This policy shift is expected to stimulate institutional investment and boost transparency in property asset management.

Off-Plan Market Sees Record Activity

Off-plan transactions were a major driver of July’s growth, with the secondary off-plan segment witnessing a 123% increase in value, reaching AED 7.6 billion across 2,680 transactions (+88% YoY).

The primary ready market also remained strong, recording 1,961 transactions valued at AED 12.2 billion, translating to a 66% increase in volume and a 56% increase in value year-on-year.

In total, the primary market contributed AED 31.9 billion, led by high-value deals in Wadi Al Safa 3 (16%) and Dubai Investment Park (9%).

Secondary Market and Landmark Deals

The secondary market also demonstrated resilience, registering AED 31.7 billion in sales from 8,221 transactions — a 22% increase in value and an 18% increase in volume compared to July 2024. Key deals included a AED 1.1 billion industrial land transaction in Al Wasl, with other high-activity areas being Ras Al Khor, Jumeirah Second, and Marsa Dubai.

Buyer Behavior and Unit Trends

Apartments continue to dominate buyer preferences, representing 62% of all property interest and nearly 80% of rental searches. There’s also a growing demand for smaller units, especially studio and one-bedroom apartments, as renters shift to ownership to hedge against rising rent prices.

Studios: 22% of rental searches; 16% of buyer interest
One-bedrooms: 36% of buy interest; 40% of rental searches

This shift marks a 3% YoY increase in demand for apartments over villas, further emphasizing affordability and practicality as key decision-making factors for buyers in a high-rent environment.

Industry Perspective

“With a powerful mix of market resilience, investor-friendly policies, and data transparency, Dubai continues to reinforce its position as one of the world’s most attractive real estate markets,” said Cherif Sleiman, Chief Revenue Officer at Property Finder. “The new depreciation-based tax incentives are a forward-thinking move that reflects global best practices and boosts long-term investor confidence.”

He added that businesses can now claim real-time, market-based tax deductions, offering greater flexibility, clearer reporting, and potential for portfolio growth for developers, funds, and corporates.