Dubai Residents Turn Buyers as Home Deals Surge to Dh138 Billion in Q3
According to new market data, real estate transactions in Dubai surged to a record Dh138 billion in the third quarter of 2025, marking one of the strongest quarters in the city’s history. More importantly, a growing number of these transactions came not from overseas buyers but from people who live, work, and build their lives in Dubai.
This shift signals a new chapter in the city’s evolution one where Dubai is no longer just an investment hotspot, but a homeownership destination.
A Turning Point: From Tenants to Homeowners
For decades, Dubai’s skyline has symbolized ambition and growth but much of that growth was fueled by international capital. The rental market thrived as professionals and expatriates preferred flexibility over commitment.
Now, as rents have climbed by nearly 25–30% since 2022, and mortgage rates stabilize, more residents are choosing to buy instead of rent. The city’s maturing financial ecosystem, availability of mortgage products, and long-term visa options are giving end-users the confidence to invest in their own homes.
According to the Dubai Land Department (DLD), property sales in Q3 2025 not only crossed Dh138 billion but also represented a year-on-year increase of 16%. Analysts believe this growth reflects both domestic and foreign participation but the strongest new wave of demand is coming from within Dubai itself.
Why Residents Are Now Buying
The reasons behind this local buying surge go beyond market numbers. They’re rooted in trust, stability, and belonging values that have steadily strengthened in Dubai over the past decade.
1. Rent vs. Buy: The Math Has Changed
With rents soaring across key communities like Downtown Dubai, Business Bay, and Jumeirah Village Circle, many residents are realizing that mortgage payments are now comparable to monthly rents.
Developers are also offering flexible post-handover payment plans, allowing buyers to spread payments over several years. For families planning to stay in Dubai long-term, homeownership has become not just practical but financially strategic.
2. Long-Term Residency and Visa Reforms
Dubai’s Golden Visa program has been a game-changer. Professionals, entrepreneurs, and investors can now secure 10-year residency through real estate ownership. This has encouraged mid- to high-income earners to invest in their primary homes rather than renting.
As one Dubai-based professional put it in a recent interview: “Owning a property here isn’t just about an address — it’s about securing your family’s future.”
3. A Sense of Permanence
Over the last few years, Dubai has become a true home for millions of expatriates. With world-class healthcare, education, and safety, many residents who once saw Dubai as a temporary posting now view it as a permanent base.
This emotional and financial shift is driving families to move from short-term rentals into owned homes, especially in community-centric areas such as Arabian Ranches, Dubai Hills, and Tilal Al Ghaf.
HNW Investors Still Set the Pace
While local buyers are playing a bigger role, the upper end of the Dubai real estate market continues to be powered by High-Net-Worth (HNW) investors from across the globe.
Saudi Investors in Dubai
Saudi buyers remain among the top contributors to Dubai’s luxury property boom. Their interest extends from exclusive villas on Palm Jumeirah to branded residences in Downtown Dubai. Many Saudis view Dubai’s real estate as a stable, globally connected investment that complements their domestic holdings.
Indian Investors in Dubai
Indian investors continue to be the largest group of foreign buyers. With strong cultural and business ties, many NRIs are investing in both high-end and mid-market segments. Areas like Business Bay, JVC, and Meydan are particularly popular due to affordability and strong rental yields.
European and Global Interest
Wealthy individuals from Europe, Russia, and Asia are also flocking to Dubai for lifestyle investments properties that combine luxury, privacy, and tax benefits. The city’s real estate remains one of the few global markets offering high returns with political stability and modern infrastructure.
The Mid-Market Segment Takes the Spotlight
While luxury headlines dominate newsfeeds, the real growth story lies in the mid-market housing segment.
Developers like Danube, Azizi, and Sobha are focusing on projects that cater to working professionals with prices ranging between AED 1 million and AED 3 million. These homes are not just affordable but also come with smart layouts, shared amenities, and sustainable design.
According to the DLD, nearly 60% of all residential transactions in 2025 came from properties priced under AED 2 million, signaling the rise of a more balanced, end-user-driven market.
This democratization of property ownership is creating a healthier ecosystem where Dubai is not just a playground for global elites but a city where its own residents are shaping its future.
Dubai’s Lifestyle Still Holds Global Appeal
Even as residents step into the market, Dubai’s international allure remains unmatched. The city’s real estate growth is reinforced by its unparalleled lifestyle, safety, and economic freedom.
World-Class Infrastructure and Amenities
From futuristic projects like Palm Jebel Ali’s relaunch to the continuous expansion of Dubai Metro and green community initiatives, the city continues to invest heavily in infrastructure that enhances daily life.
Expo 2020 Legacy and Economic Confidence
The Expo 2020 legacy lives on through the thriving District 2020 (now Expo City), which has become a hub for technology, innovation, and sustainability — further boosting surrounding real estate values.
A Global Hub for Work and Leisure
Dubai’s positioning as a global business hub, combined with its appeal as a luxury lifestyle destination, gives it a dual advantage. Investors and residents alike benefit from a city that’s as much about economic opportunity as it is about living well.
Data Snapshot: The Numbers Behind the Surge
To understand the scale of Dubai’s property market growth, consider this:
Total property transactions (Q3 2025): Dh138 billion
Growth year-on-year: 16% increase from Q3 2024
Residential sales share: Over 70% of total deals
Mid-market dominance: 60% of units sold priced below AED 2 million
Prime and ultra-prime deals: Over 350 transactions worth $10 million+ in 2025 so far
These figures highlight one truth Dubai’s property market isn’t just recovering; it’s diversifying.
What This Means for the Future
Experts predict that 2026 will continue this momentum, with both local and international demand sustaining price growth. However, instead of the rapid spikes of previous cycles, Dubai is entering a period of measured, sustainable growth.
The shift toward resident buyers brings more stability to the market, reducing dependence on speculative activity. Developers are responding with a wave of community-focused, affordable luxury projects that align with long-term living rather than short-term gains.
Moreover, as Dubai aims to attract 5.8 million residents by 2030 under the Dubai 2040 Urban Master Plan, housing demand is expected to remain robust.
The Harpreet Real Estate Perspective
At Harpreet Real Estate LLC, we believe this new wave of Dubai residents entering the property market marks a powerful shift one that reinforces the city’s maturity, inclusivity, and confidence.
Our team has witnessed increasing inquiries from first-time buyers and long-term residents who want to convert their rent into equity. This trend is reshaping the city’s property landscape and creating a more grounded market built on real end-user demand.
Whether it’s a young couple purchasing their first apartment in JVC, or an executive family upgrading to a villa in Dubai Hills these stories represent the heart of Dubai’s transformation.
For investors, this trend also signals market depth and resilience. A strong local buyer base ensures that the Dubai real estate market can weather global fluctuations while continuing to offer strong returns.
Conclusion
Dubai’s real estate story is no longer defined solely by luxury towers and billionaire investments. It’s now being shaped by the people who call this city home residents who are confident in its future, invested in its community, and committed to its promise.
As home sales soar to Dh138 billion in Q3 2025, the message is clear: Dubai’s property market is evolving not inflating. It’s maturing into a balanced ecosystem where both global investors and local residents play their part in driving growth.
At Harpreet Real Estate LLC, we’re proud to be part of this journey guiding clients with honesty, transparency, and deep market insight. Whether you’re a first-time buyer, an NRI exploring opportunities, or an investor seeking your next property move, we’re here to help you make informed, confident decisions in Dubai’s thriving real estate landscape.
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