Dubai crosses 4m residents while property deals top Dh900 billion in record year

Dubai: Dubai’s population has surpassed four million, a milestone that is already feeding directly into housing demand and reinforcing record activity in a property market that saw transactions approach Dh900 billion last year.

The emirate added nearly 18,000 residents in a single month by the end of August 2025, reflecting sustained inflows driven by employment growth, business relocation, and continued international migration. According to Savills, this steady demographic expansion is translating into real, broad-based demand across both rental and ownership segments.

New residents are entering the market across multiple price points, from mid-income professionals seeking apartments close to employment hubs to high-net-worth individuals targeting prime waterfront and villa communities.

Dubai Land Department data shows property sales reached more than Dh680 billion in 2025 across over 200,000 transactions, the strongest annual performance on record. Total real estate transaction value, including mortgages and gifts, climbed to around Dh919 billion, highlighting the depth and liquidity of the market.

Savills notes that population growth is now one of the most powerful drivers shaping housing demand in the emirate.

“When Dubai adds close to 18,000 residents in a single month, it has an immediate impact on market activity," said Alec James Smith, Head of Residential Sales and Leasing at Savills Middle East. "We see it in enquiry levels, viewing volumes, and the pace at which well-priced homes transact. This is demand driven by people relocating for work and lifestyle, alongside investors targeting resilient rental income.”

He added that demand continues to be supported by long-term relocation trends.

“As population growth continues, well-located and high-quality stock remains consistently sought after.”

Record activity signals sustained confidence

Market momentum strengthened significantly in the second half of 2025, with the fourth quarter recording the highest quarterly sales value ever, exceeding Dh187 billion. Three consecutive record months during that period reflected steady engagement from both investors and end users rather than short-term speculative activity.

The research also found that Dubai’s prime residential segment saw strong growth, with nearly 6,000 transactions above Dh10 million completed during the year. Limited supply in established prime locations combined with ongoing wealth migration has helped sustain both price and rental resilience.

Savills noted that Dubai continued to outperform many global residential markets through 2025, supported by population growth, job creation and sustained international demand.

Lower borrowing costs support buyer confidence

Financing conditions have begun to improve following recent interest rate reductions by the UAE Central Bank, which are expected to gradually ease mortgage costs.

According to Savills, improving affordability typically translates into stronger buyer engagement over subsequent quarters, particularly among end users who had delayed purchasing decisions.

Lower interest rates also enhance the relative attractiveness of property investment in Dubai, where rental yields remain competitive compared with global markets.

Supply discipline will shape next phase

Rapid population growth places increasing emphasis on aligning supply with demand across locations, price ranges and infrastructure readiness.

Andrew Cummings, Head of Residential Agency at Savills Middle East, said the population milestone reflects the emirate’s continued global appeal.

“Dubai crossing the four million population mark is a clear signal of the city’s global appeal and economic momentum. This growth supports a broad base of housing demand, from first-time buyers through to ultra-high-net-worth individuals.”

He added that the next stage of the market will depend on disciplined development.

“The next phase of the market will be shaped by disciplined supply, infrastructure-led development, and a continued focus on quality. These fundamentals place Dubai in a strong position as it plans for a population of nearly six million residents by 2040.”

Population expansion, easing financing conditions, and strong transaction activity continue to reinforce confidence in Dubai’s residential market as it enters 2026.