Dubai’s population has crossed four million, fueling housing demand and supporting record activity in the real estate market, which saw transactions approach Dh900 billion in 2025.
Population Growth Drives Housing Demand
By the end of August 2025, Dubai added nearly 18,000 residents in a single month, supported by employment growth, business relocation, and international migration. This demographic expansion is translating into strong demand across rental and ownership segments, from mid-income professionals to high-net-worth individuals targeting prime waterfront and villa communities.
Property sales reached Dh680 billion across over 200,000 transactions in 2025. Including mortgages and gifts, total real estate transaction value climbed to around Dh919 billion, highlighting the market’s liquidity and depth.
Population growth is now one of the most powerful drivers shaping housing demand. As more residents relocate for work and lifestyle, well-located and high-quality housing stock remains consistently sought after.
Record Activity Signals Confidence
Market momentum strengthened in the second half of 2025, with the fourth quarter recording the highest quarterly sales value ever, exceeding Dh187 billion. Prime residential transactions also performed strongly, with nearly 6,000 deals above Dh10 million. Limited supply in established prime locations, combined with ongoing wealth migration, has helped sustain both prices and rental resilience.
Dubai outperformed many global residential markets through 2025, supported by population growth, job creation, and international demand.
Easing Financing Conditions
Recent interest rate reductions are gradually lowering mortgage costs. Improved affordability is expected to drive stronger buyer engagement in subsequent quarters, particularly among end users who had postponed property purchases. Lower borrowing costs also enhance the attractiveness of Dubai property investment, with competitive rental yields compared to global markets.
Supply Discipline and Future Outlook
Rapid population growth emphasizes the need for disciplined supply, infrastructure-led development, and quality-focused projects. Dubai is planning for a population of nearly six million by 2040, with the next phase of the market shaped by sustainable development and strategic supply alignment.
Population expansion, easing financing conditions, and strong transaction activity continue to underpin confidence in Dubai’s residential market as it enters 2026.