Real Estate

The latest Savills “Dubai Market in Minutes” reports reveal that Dubai’s office and residential real estate markets maintained their robust performance in Q3 2025, reflecting strong economic fundamentals, sustained investor confidence, and continued population growth.

Office Sector: Sustained Growth and High Demand

Dubai’s office sector continued its upward trajectory during the quarter, supported by solid non-oil economic expansion and a steady influx of new companies.

• Average office rents rose to AED 233 per sq ft, marking a 4.5% increase quarter-on-quarter and 35% year-on-year.

• Leasing activity remained buoyant throughout the summer, traditionally a slower period, driven by expansion, relocations, and new market entries.

• The technology, media, and pharmaceutical sectors each accounted for 29% of leasing activity, followed by consulting and energy firms at 14% each.

Toby Hall, Head of Commercial Agency, Middle East at Savills, commented:

“Dubai’s office market continues to defy expectations, with strong leasing activity across both established and emerging submarkets. The limited supply of Grade A offices and sustained occupier confidence are driving rental growth, while innovative developments such as branded and strata-led offices are reshaping the future of demand.”

Around 1 million sq ft of new office space is expected to be delivered between late 2025 and early 2026, much of which has already been pre-leased, signaling strong forward demand. Developers such as Rove Hotels, Danube, and Capital One are introducing flexible office concepts tailored to SMEs and fractional ownership models.

Dubai’s population surpassed 4 million during Q3, while the UAE’s GDP is forecast to expand by 4.7% in 2025, reinforcing the emirate’s long-term appeal as a commercial hub.

Residential Sector: Record Transactions and Investor Confidence

The residential market continued to build on its record-breaking momentum, supported by rising homeownership among expatriates, strong population inflows, and increasing high-net-worth individual (HNWI) migration.

• Transaction volumes exceeded 50,000 for the second consecutive quarter, far above historical averages.

• Apartments accounted for 86% of all transactions (up from 75% in Q1), while off-plan sales represented 69% of total deals, underscoring investor appetite for new projects.

• Average prices per square foot reached new highs across both apartments and villas, driven by luxury project launches in key master communities.

• In the prime residential segment, 1,500 transactions exceeded AED 10 million, with villas comprising 73% of this activity.

Andrew Cummings, Head of Residential Agency, Middle East at Savills, said:

“Dubai’s residential market continues to attract a diverse pool of buyers—from end-users seeking long-term value to investors drawn by stability and global appeal. The growing preference for ownership reflects Dubai’s evolution from a transient hub to a mature, family-friendly city.”

During Q3 2025, 8,500 new units were completed, bringing total completions for the year to nearly 30,000, matching the 2024 total. Looking ahead, over 250,000 units are projected to be delivered by 2028, ensuring a healthy long-term supply pipeline.

Outlook: Sustained Confidence Through 2025 and Beyond

Population growth remains a major market driver, with Dubai’s population projected to reach 5 million by 2030. The emirate continues to attract global wealth, with Henley & Partners forecasting that 9,800 millionaires will relocate to the UAE in 2025.

Savills anticipates that Dubai’s real estate market will maintain its strong fundamentals through the remainder of 2025.

• The office sector is expected to see moderate rental growth as new Grade A stock enters the market.

• The residential sector will continue to benefit from robust demand, quality-of-life advantages, and investor confidence—cementing Dubai’s position as one of the world’s most dynamic and resilient property markets.

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