04

Nov

Is Dubai’s Luxury Real Estate Market Stabilizing or Slowing Down?

  • by admin
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Dubai’s luxury real estate market is doing well. The first half of the year saw strong growth. That strength continued in the third quarter of 2025.

In Q3 2025, there were 737 luxury property deals. Each was worth AED 15 million or more. This is a big jump after the record-breaking numbers earlier in the year. Out of these, 492 were resale homes and 245 were off-plan Dubai. These figures show strong buyer confidence and steady demand in the market.

Sales of properties resale reached 1,153 in Q3, the highest ever recorded. This is much higher than the long-term average for Dubai. It indicates that the high-end market remains strong. The market is now becoming more stable instead of growing too fast.

Betterhomes CEO Louis Harding said, “Dubai’s luxury real estate market is moving from rapid growth to stability.”

He explained that after two years of very high activity, the market is now adjusting. Prices are strong. International buyers are still active. Buyers at the top end are focusing more on quality. This shows a confident and steady market, not a weak one.

The best communities for resale luxury properties in Q3 were The Oasis, Dubai Hills Estate, Palm Jumeirah, Mohammed Bin Rashid City, and Nad Al Sheba.

Resale Properties in Dubai (secondary sales):

  • Palm Jumeirah led the pack, accounting for about 34% of ultra-luxury transactions (AED 15 million +)
  • Dubai Hills Estate also drew strong interest thanks to its new-generation villas. It appeals to those seeking golf-side amenities and brand recognition.
  • Mohammed Bin Rashid City (MBR City) has benefited from a high-end supply of townhouses and villas. Its location is also well-connected, with good infrastructure.
  • Nad Al Sheba has seen rising demand for premium villas in golf/green-frame settings—scarcity is working in its favour.
  • The Oasis is part of newer villa-community. This community is gaining popularity as buyers seek of-water options for ultra-premium islands.

Why these areas are top performers for resale:

  • Strong lifestyle appeal (water, golf, green space) plus prestige built into the address.
  • Supply is limited or tightly controlled—this supports pricing and demand.
  • International buyers favour “iconic” or “destination” developments with proven track records.
  • They combine ready stock (in resale markets) with proven infrastructure, making them less risky compared to very new launches.

For off-plan sales, the top areas were Jumeirah, Palm Jumeirah, Downtown Dubai, Mohammed Bin Rashid City, and Business Bay.

Transactions of Off-plan projects in Dubai:

  • Jumeirah is a popular luxury beachfront and freehold destination. It remains a top choice for off-plan buyers looking for future-grade luxury by the sea.
  • The Palm Jumeirah remains strong in off-plan sales as well, showcasing the twin appeal of brand and location in ultra-luxury.
  • Downtown Dubai remains a magnet due to its central location, famous landmarks, and global tenant appeal (when homes are completed).
  • Mohammed Bin Rashid City boasts a status quo for its master planning. Several premium developments are being introduced to this area, making it increasingly attractive to forward-looking buyers.
  • Business Bay appeals to those seeking vertical luxury, integrated urban living and investment upside (office + residential swap-in).

Why these communities lead in off-plan:

  • Buyers are looking “forward” to completion: brand new inventory and modern design. For off-plan projects in Dubai, the good reputation of the developer plays a main role.
  • These locations offer infrastructure and connectivity (including metro, malls and business hubs). This reduces risk and increases attraction.
  • International buyers like the idea of a future-ready asset in a stable market—Dubai ticks that box.
  • Developers in these areas often offer flexible payment/launch offers. This encourages buying any off-plan property at an early stage.

Off-plan sales dropped slightly compared to the previous quarter. Still, they remain higher than past levels. Dubai’s safe environment, stable currency, and steady foreign investment continue to support demand.

Harding added, “The growth of Dubai’s luxury sector shows how mature the city has become. The data proves Dubai is one of the world’s most stable and reliable luxury markets.”