Dubai’s residential property market continued to grow strongly in 2025, with emerging neighbourhoods leading a new phase of expansion. Buyers and investors are moving beyond established locations, according to Metropolitan Premium Properties (MPP), one of the UAE’s leading real estate brokerages.
Figures from Property Monitor show that Dubai recorded 200,780 residential transactions worth AED 541.5 billion last year. This marks an 18.9% rise compared to 2024. While areas such as Jumeirah Village Circle and Business Bay remained top performers, several fast-growing districts posted sharp increases, showing wider demand across the city.
Two of the strongest emerging locations were Palm Jebel Ali and Dubai Islands. Palm Jebel Ali, a major new waterfront development, recorded a 244% rise in transaction volumes. Dubai Islands, which is reshaping the northern coastline, saw growth of 156%.
Other areas that showed strong performance included The Oasis (+132%), Nad Al Sheba (+80%), La Mer (+74%), Dubai Water Canal (69%), Dubai Maritime City (54%) and Dubai South (30%).
MPP reports that this growth is mainly driven by off-plan sales. Buyers are investing early in areas still under development, supported by long-term master plans.
“Investor demand is increasingly concentrating on large-scale, future-facing developments where infrastructure, lifestyle appeal, and long-term supply dynamics support sustained growth,” said Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties. “While waterfront locations have consistently attracted strong interest, we are now seeing heightened activity in new, large-scale coastal districts as buyers position themselves early in Dubai’s next phase of urban expansion.”
MPP notes that completed properties still attract end-users and buyers seeking rental income. In contrast, emerging areas appeal to investors focused on long-term price growth rather than short-term returns.
By transaction volume, Jumeirah Village Circle ranked first with 17,933 deals at an average price of AED 1,102,967. Off-plan sales made up 69% of activity. Business Bay placed second with 11,874 transactions at an average of AED 2,341,979, with a 73% off-plan share. Dubai South followed with 9,820 transactions averaging AED 2,084,040, with 84% off-plan, reflecting growth near Al Maktoum International Airport.
Other high-volume locations included Dubai Residence Complex (7,802), Motor City (5,828), Dubai Science Park (5,391), Dubai Production City (5,273), Jumeirah Village Triangle (5,137) and DAMAC Islands (4,845). The top five areas together accounted for 26.1% of all transactions, showing strong geographic spread.
According to MPP, off-plan sales continue to shape new growth corridors. As developers increase launches in line with Dubai’s long-term urban plans, these districts are expected to develop into major residential hubs.
Marcus Andersson, Head of Sales – Off-plan, Metropolitan Premium Properties said: “Off-plan remains the driving force of Dubai’s residential real estate market, accounting for over 75% of total transactions in 2025 and this momentum is set to accelerate further. As major developers roll out large-scale projects in 2026 – particularly in high-growth corridors such as Dubai South, Dubai Islands and new master-planned phases by Emaar and DAMAC – we anticipate off-plan unit sales to rise by a further 10–15% in 2026.”
Looking ahead, Vasilieva added: “Dubai’s secondary market is set for steady, sustainable growth through 2026. Areas such as Dubai South, Dubai Hills Estate and Dubai Creek Harbour are increasingly attracting end-users and long-term investors, driven by airport-led development, improved connectivity and a growing focus on family-oriented communities. These emerging districts will be central to the next chapter of Dubai’s real estate story.”
As transactions spread across more communities, MPP believes Dubai’s market is entering a more balanced phase. Growth will be defined by wider demand, stronger diversification and long-term stability.
