Why Are Dubai’s Off-Plan Property Sales Surging in Q2 2025?

Why Are Dubai’s Off-Plan Property Sales Surging in Q2 2025?

According to experts, the end of 2025 will see a 10% increase in off-plan sales in Dubai, thanks to new policies, foreign investment, and creative developer launches.

The off-plan sector in Dubai during Q2 2025 has set a new annual benchmark. The government’s latest initiatives and development projects played a crucial role as they collectively pushed the overall sale of off-plan properties in Dubai beyond AED 68 billion (30,000+ transactions)—up by 28% compared to last year, generating both local and international interest in new projects at rates that have never been seen before.

It’s more than just numbers; this surge is a reminder of Dubai’s rapid transformation into an ultra-modern city, its open regulatory landscape and its market confidence. Today, investors, end users and industry leaders feel confident about their investment ROI in Dubai.

Read on to understand the key growth drivers, buyer insights and more about the market.

What’s Driving this Growth in Dubai’s Off-Plan Market?

Statistically Dubai’s off plan market is growing rapidly, with off-plan sales transactions rising by 43% in Q2 2025. This uplift is also backed by a stronger GDP which is rising 4% year on year, reaching AED 119.7bn in Q1 2025.

Let’s break down these factors below.

Strong Economic Growth Fuels Confidence

As we discussed above, the strong year-on-year GDP growth of the emirate fuels strong economic growth, affecting each sector of the economy. As per our past quarter’s report, real estate has expanded by 7%, contributing AED 9 billion to the overall economy.

This constant flow of money in the market, along with government support for foreign investment in the form of new policy introductions like the First Time Home Buyer, regulation extensions like the expanded Golden Visa (10-year residency for property investments of AED 2 million+), Retirement Visa for expats 55+, Blue Visa for environmental contributors, and multiple entry tourist visas, are some key drivers that directly fuel market confidence and demand.

Q2 Property Transactions Outpace Previous Year

Now all these investor friendly schemes combined with strong GDP growth have led to massive growth in Dubai’s Off Plan market, especially for residential projects. When we compared Dubai’s off-plan market for Q2 2024 vs. 2025, it clearly shows a stronger momentum in 2025 than in Q2 2024, as evident from an increase in the volume of transactions from 22,722 to 26,024—a 14.53% increase.

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Connectivity Drives Community Demand

Improved infrastructure is making Dubai more attractive; values of properties around the Etihad Rail and Blue Line Metro projects are expected to rise by 30% by 2025. Developments such as Dubai South and Al Furjan are now high on buyers’ lists, offering short commutes and plenty of opportunities for rental yields and capital growth.

Looking for exclusive investment opportunities to enhance your portfolio? Read our blog, “Finding Hidden Gems: Off-Market Properties in Dubai | Chestertons MENA.” 

Buyer Insights: Who Are the Buyers Fuelling This Unprecedented Demand?

Fresh faces and new motivations are remaking the off-plan landscape in Dubai. Investors from Britain and beyond are rushing to Dubai, leaving behind higher taxes and soaring inflation at home for the city’s tax-friendly system. The pitch is irresistible—Dubai offers long-term security for its capital. Some of the major contributors to this growth involve Europeans, nationality-wise, and youngsters, age-wise.

For further clarification, our off-plan experts are seeing demands from these groups specifically:

• Expats
• New families
• First-time home buyers

Interested in investing in the best of commercial districts in Dubai? Our recent post, “Top 5 Fastest-Growing Commercial Districts for Best Property Investment in Dubai,” showcases where savvy investors are buying right now.

Some of the Prime Communities & Standout Projects Catching Investor Attention

Top residential hotspots in Dubai for Q2 2025, including Palm Jumeirah, Downtown, MBR City, Expo City and Business Bay, continue to appeal to discerning clients searching for a superior investment. The number of luxury home transactions above $10 million rose 52% in 2025, reinforcing strong demand and boosting investor confidence.

According to official market data, luxury home sales in these regions recorded 143 sales over $10 million in Q2 of this year, which represents an uptick of 52% from last year—a testament to consistent demand and high investor confidence.

Discover what sets Emaar South apart in today’s market. Refer to our most recent blog, “Emaar South Area Guide (2025)”, in which our experts provide pragmatic advice and current information. 

How Chestertons Supports Clients

• Research-backed recommendations built on market intelligence and decades of experience guide every client decision.
• Dedicated trend analysis reveals a shift early—fresh data suggest that Q1 2025 off-plan sales in Dubai are up by 21%.
• This means exclusive access to pre-launch and off-market opportunities, hence ensuring ‘first mover advantage.
• The strategic guidance of experienced leadership with over 20 years of experience in Dubai real estate represents a significant breakthrough in risk minimisation and capital growth.

Forward-Looking Commentary: What Does the Future Hold?

Looking ahead to the second half of the year, Chestertons anticipates sustained demand in the off-plan segment, supported by a steady stream of new launches and ongoing infrastructure development. Given their enduring lifestyle appeal and strong liquidity, we expect townhouses, villas, and waterfront apartments to remain highly attractive.

On average, Dubai launches 500 units daily! We understand the number seems unrealistic,  but that’s the pace of Dubai’s real estate market. Even the most seasoned investors can find such volume overwhelming. And that’s why Chestertons remains committed to guiding clients through this dynamic market landscape, leveraging our deep market expertise to identify the most promising investment opportunities as Dubai’s off-plan sector continues its upward trajectory.