Dubai’s real estate market surged to new heights in July 2025, recording AED63.6bn ($17.3bn) in property transactions — a 27 per cent year-on-year increase in value and a 24 per cent rise in transaction volume, according to Property Finder’s latest market performance report.
This strong performance was driven by robust off-plan sales, increased secondary market activity, and a landmark policy shift by the UAE Ministry of Finance, which now allows corporate tax deductions on investment properties held at fair value.
The move that aligns with global accounting standards and significantly enhances investor flexibility, according to Property Finder analysis.
Dubai real estate growth
Other notable highlights of the report, included:
- Secondary off-plan transactions stood out, hitting AED7.6bn ($2.07bn) — a 123 per cent increase in value and an 88 per cent rise in volume compared to July 2024
- The primary ready market recorded 1,961 deals worth AED 12.2bn ($3.32bn), demonstrating solid demand for newly completed units.
Overall, the primary market accounted for AED 31.9bn ($8.7bn) in sales — up 32 per cent YoY — with high-value deals in Wadi Al Safa 3 (16 per cent of primary value) and Dubai Investment Park (9 per cent).
The secondary market closely followed, contributing AED 31.7bn ($8.6bn) across 8,221 transactions — a 22 per cent increase in value and an 18 per cent boost in volume year-on-year. Key drivers included:
- A AED1.1bn ($299.5m) industrial land deal in Al Wasl
- Increased activity in Ras Al Khor, Jumeirah Second, and Marsa Dubai
The July 2025 policy update by the UAE Ministry of Finance allows depreciation deductions based on current market value, instead of historical cost — a change hailed by investors and analysts alike.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “With a powerful mix of market resilience, investor-friendly policies, and data transparency, Dubai continues to reinforce its position as one of the most attractive real estate markets globally.
“The new Ministerial Decision allowing depreciation deductions on investment properties held at fair value, is a forward-thinking move aligning the UAE’s tax framework with international best practices.
“It’s a prime example of how the country fosters long-term investor confidence by proactively evolving its regulatory landscape. Businesses can now claim tax deductions based on real-time market valuations, offering added flexibility and significant potential savings.
“This not only enhances reporting transparency but also incentivises growth for developers, funds, and corporates seeking to expand their portfolios.”
The market saw increased demand for smaller units, particularly one-bedroom and studios, as renters turned to ownership to hedge against rising rental prices.
- Apartments remained the dominant choice, attracting 62 per cent of buyer interest and nearly 80 per cent of rental searches.
- Rising rents are pushing renters toward ownership, particularly of smaller units:
- Studio apartments: 22 per cent of rental searches, 16 per cent of purchase interest
- One-bedroom units: 36 per cent of purchase searches, 40 per cent of rental searches
The share of buyers opting for apartments over villas in Dubai rose 3 per cent YoY, a trend largely attributed to affordability concerns and hedging strategies amid increasing rental prices.
