A Practical Investment Guide for Off-Plan and Ready Properties
1. Ultra-Short Snapshot for Busy Investors
In October, prices in the Dubai real estate market increased by only 0.13% month-on-month, but the overall long-term trend is still strongly upward.
The average price per square foot in Dubai is around AED 1,683, which is more than double the market low in 2020 and around 36% higher than the previous peak in 2014.
In October, there were about 19,760 property transactions. This is slightly lower than last year’s October, but still the second strongest October ever recorded in Dubai.
Off-plan properties are the core of the market: after adjusting for how some under-construction townhouses and villas are registered, off-plan actually represents around 70.6% of all transactions.
From January to October 2025, there have been roughly 178,000 total transactions, which is already about 98% of all transactions recorded in the full year 2024.
So far in 2025, developers have launched more than 131,500 new units, which is already more supply than you would see in a “normal” full year.
Mortgage activity grew by 28.9% in October compared to September. The average Loan-to-Value (LTV) ratio is around 73.6%, which means banks are still comfortable sharing risk with buyers and investors.
In simple terms:
The Dubai property market is no longer in a crazy, vertical rally. Instead, it is shifting into a phase of strong but more sustainable growth. For investors, this is a healthier environment: still powerful, still liquid, but less speculative than the 2021–2023 hyper-rally.
2. Big Picture – Why the Dubai Property Market Is Still “Alive and Energised”
When you look at Dubai real estate as a whole, the first thing that stands out is how deep and active the market still is.
Over the last 12 months, the market has averaged around 17,300 transactions per month, and only two months fell below the 15,000 transaction level. For a single city, this level of activity is extremely high.
For an investor, that translates into three very important real-world points:
High liquidity
If you choose the right project and price your property sensibly, your chances of being able to sell or rent it out are high. You are not stuck in a dead market.Deep and diversified demand
Demand is not concentrated in just one or two headline areas. Activity is spread across different communities – apartments, villas, townhouses, waterfront, golf communities, suburban master developments and more. This lowers the risk of everything depending on one single hotspot.No signs of a classic “crash pattern” in the current data
What the numbers show is more consistent with a slowing of the speed rather than a hard stop. Prices are still rising year-on-year, volumes are strong, and developers continue to launch aggressively.
On the supply side, developers are clearly playing a long-term game:
In October alone, around 65 new projects with more than 14,000 units were launched.
Year-to-date, the market has seen 532 project launches and about 131,504 units coming to the market.
This scale of project activity tells you something important:
Serious developers are positioning for multi-year demand driven by population growth, infrastructure, tourism and global capital inflows – not just a short-term flip cycle.
For professional investors, this high level of supply creates opportunities, but it also means you must be selective and analytical. Not every launch will perform strongly. The skill is choosing the right developer, the right community and the right price band.
3. Price Trends and the Dynamic Price Index (DPI)
To understand price behaviour in the Dubai property market, this report uses the Dynamic Price Index (DPI). The DPI tracks residential prices across 42 major communities and is set to 100 in January 2008 as a base.
DPI Levels in October 2025
Index Value: 235.03
Month-on-Month Change (MoM): +0.13%
Quarter-on-Quarter Change (QoQ): +3.56%
Year-on-Year Change (YoY): +14.29%
Average Price per sq ft: AED 1,683
What does this mean in practical terms?
Massive recovery from the 2020 low
Since the bottom of the current cycle around October 2020, residential prices have increased by more than 106%. That means the market has more than doubled from its COVID-era lows.New highs beyond the 2014 peak
Compared to the previous historic peak around September 2014, today’s index is roughly 36% higher. This confirms that we are in a new pricing era for Dubai real estate.Very persistent positive momentum
The market has now recorded 60 consecutive months of positive year-on-year price growth. A streak like this is rare in most global markets, but it matches Dubai’s unique combination of:strong population growth,
aggressive infrastructure spending,
and sustained international demand for both lifestyle and investment properties.
How Investors Should Interpret the DPI
If you enter the market with the mindset of:
“I want to buy today and double my money in a year.”
you are late to that party. The explosive post-COVID rebound phase is behind us.
But if your mindset is:
“I want to position capital in a market that is strong, liquid and still growing over the next 3–7 years.”
then Dubai still looks attractive, especially if you choose your entry carefully.
For off-plan properties, a more stable, rounded growth path is often better than a crazy spike. You want:
a market that remains healthy at handover,
realistic end-user and investor demand,
and a price curve that allows rental yields and resale values to play out gradually.
The key is understanding that Dubai is still rising, but not in a straight vertical line. The DPI shows a strong upward slope with a more controlled speed – which is actually a good environment for building sustainable wealth.
Dubai Residential Price Trend (Dynamic Price Index)
| Month | Index Value | MoM Change | QoQ Change | YoY Change | Index Price (AED / sq ft) |
|---|---|---|---|---|---|
| Oct 2025 | 235.03 | +0.13% | +3.56% | +14.29% | 1,683 |
| Sep 2025 | 234.73 | +1.00% | +4.45% | +16.12% | 1,681 |
| Aug 2025 | 232.40 | +2.40% | +5.19% | +16.28% | 1,664 |
| Jul 2025 | 226.96 | +0.99% | +3.86% | +16.20% | 1,625 |
| Jun 2025 | 224.73 | +1.71% | +4.87% | +16.63% | 1,609 |
| May 2025 | 220.95 | +1.11% | +5.12% | +16.34% | 1,582 |
| Apr 2025 | 218.52 | +1.97% | +5.43% | +15.86% | 1,565 |
| Mar 2025 | 214.29 | +1.95% | +2.80% | +15.83% | 1,535 |
| Feb 2025 | 210.18 | +1.41% | +1.72% | +16.31% | 1,505 |
| Jan 2025 | 207.26 | -0.57% | +0.79% | +15.64% | 1,484 |
| Dec 2024 | 208.45 | +0.88% | +3.09% | +16.52% | 1,493 |
| Nov 2024 | 206.63 | +0.48% | +3.39% | +16.42% | 1,480 |
| Oct 2024 | 205.64 | +1.73% | +5.44% | +17.22% | 1,473 |
Dubai Residential Price Trend – Index & Price per sq ft
This chart shows how the Dubai Dynamic Price Index and the average price per square foot have moved over the last 12 months. It helps investors visualise both the index level and the price trend on the same timeline.
4. Off-Plan vs Ready Property – Where Is the Real Game?
One of the main questions every investor asks about Dubai is:
“Should I buy off-plan or ready?”
The data for October 2025 answers this clearly.
Off-Plan (Under-Construction) Activity
About 12,947 off-plan transactions (Oqood registrations) were recorded in October.
This is roughly 9.9% lower compared to September, but off-plan still represents the majority of the market.
Officially, Oqood makes up about 65.5% of all transactions. However, because some under-construction villas and townhouses are registered directly via Title Deeds, the true share of off-plan is closer to 70.6%.
Ready (Title Deed) Transactions
Title Deed transactions in October increased by around 14.7% month-on-month.
Their share of the market reached about 34.5%, driven mainly by a rise in transactions for ready apartments.
Resale Market Dynamics
Resale is where an existing property is sold again (second or third owner), and it shows how much trading is happening:
In October, there were around 5,956 resale transactions, giving resale a 30.1% share of the total market.
Within resale, off-plan resale (trading under-construction properties) accounts for 21.7% of all resale deals.
The 12-month average share of off-plan resale is around 25.1%, down from a peak of more than 33% in April.
This tells you the following:
For short-term traders and flippers:
The era when almost every off-plan launch could be flipped for a big premium very quickly is fading. Off-plan resale still exists, but it is more selective now. You need:uniquely positioned products (waterfront, branded residences, prime views),
or communities with genuinely limited future supply.
For medium- to long-term investors:
Off-plan remains a powerful tool, especially when:you secure a strong entry price,
in a project with a solid developer,
in a location where future infrastructure and demand are clear.
You are not just betting on a quick flip; you are positioning for:stable long-term capital appreciation,
attractive rental yields after handover,
and a flexible payment structure that matches your cash flow.
For end-users (people buying to live in Dubai):
The increase in ready transactions – especially in apartments – suggests there are more liveable, move-in-ready options on the market.
If you want to live in the property within 6–12 months, it may be worth comparing:ready apartments in established communities
versusoff-plan units that will be handed over soon and offer post-handover payment plans.
Market Composition – Off-plan vs Ready (Oct 2025)
The majority of Dubai property transactions are still driven by off-plan projects. This donut chart highlights the real split between under-construction and completed properties.
5. Mortgages and Leverage – What Are Banks Signalling?
Mortgages are a very important indicator for the health and depth of the Dubai property market.
Mortgage Highlights for October 2025
Around 4,885 mortgages were registered in October.
That is a 28.9% increase compared to September, a very strong jump in one month.
Around 58.3% of these mortgages were for new purchases, not just refinancing.
The average mortgage size was about AED 1.79 million.
The average Loan-to-Value (LTV) ratio was 73.6%, which means typical buyers are putting down approximately 25–30% as equity.
Bulk mortgages (large loans covering multiple units or whole floors for institutional or big private investors) made up about 21.6% of total mortgage activity and are increasing again.
This expansion in mortgage activity also coincided with a 25 basis point cut in interest rates. Many buyers had been waiting on the sidelines for some clarity on rates, and once the cut happened, they moved.
What This Means for Investors
Retail investors using leverage:
You can still structure deals around 70% LTV, which is a comfortable level for many buyers. However, you must be conservative:stress test your repayments at +1% or +1.5% higher interest rates,
make sure that rental yields or your personal income can safely support the mortgage.
Cash investors:
The fact that so many buyers are using leverage means there is:strong underlying demand,
but also more sensitivity to interest rates.
If you are buying in cash, you may have an advantage in negotiations on secondary ready stock, especially with sellers who are under pressure or with properties that have been listed for a while.
Institutional and bulk buyers:
The rise in bulk mortgages suggests that large and professional investors are still allocating capital to Dubai, often at scale. This acts as a confidence signal for smaller investors; big money is not leaving the market.
6. Price Bands – Where Is the Real Demand Concentrated?
The report breaks the Dubai real estate market into nine price tiers based on total property price, not price per sq ft. This gives a clearer view of where most of the transaction volume is happening and how buyer preferences are shifting.
Changes in Market Share by Price Tier (September vs October 2025)
Key winners:
AED 3M – 5M tier
Share increased by 1.9 percentage points, reaching 11.8% of all deals.
Much of this growth is linked to new launches such as:
Vindera at The Valley,
Bay Grove Residences in Dubai Islands,
Binghatti Skyblade in Downtown Dubai,
and other high-quality projects in the “high” and “upper mid-luxury” segment.
Below AED 1M segments
Below AED 500K: market share rose from 2.4% to 3.6% (+1.2 pp).
AED 500K – 750K: rose from 11.5% to 12.6% (+1.1 pp).
These increases are largely driven by mid and lower-mid off-plan launches such as:
Auresta Tower,
Samana Sky Views,
Ananda Residences,
and similar projects targeting entry-level investors.
Biggest loser:
AED 1M – 1.5M tier
Market share dropped from 27.5% to 24.1%, a decline of 3.4 percentage points.
This suggests some buyers either moved down into sub-1M units or up into the 3–5M band where they see better long-term value or lifestyle.
Grouping the Tiers into Three Simple Segments
To make it easier to understand:
Under AED 1M:
Represents around 28.7% of all transactions.
This segment is growing in share.
AED 1M – 3M:
Takes about 50.9% of the market.
Still the largest bucket, but its share has slightly reduced.
Above AED 3M:
Accounts for about 20.4% of transactions.
This segment has grown by around 2.6 percentage points.
Market Share by Price Tier – Sep vs Oct 2025
This grouped bar chart compares the share of transactions in each total price band between September and October 2025. It clearly shows where demand is increasing or decreasing across different price tiers.
How to Use This Price-Tier View for Strategy
Entry-level investors (below AED 1M):
Competition is strong, but the growing share shows solid, sustainable demand, especially for studios and 1BR units in emerging locations with good connectivity.
The right play here is to focus on:
smart layouts,
future infrastructure (metro, highways, community amenities),
and reasonable service charges.
The goal: healthy rental yields (target 6–8% or more) plus gradual capital growth.
Mainstream investors (AED 1M – 3M):
This is still the core of the Dubai real estate market, covering most mid-market and upper mid-market units.
The slight drop in share doesn’t mean the segment is weak; it simply shows that investors are also exploring cheaper entry points and more premium lifestyle options.
The sweet spot here is often:
townhouses in developing family communities,
2BR and 3BR apartments in well-located buildings with a strong community story and good facilities.
High-end and luxury investors (AED 3M+):
Rising share in the 3–5M band suggests growing interest in:
branded residences,
waterfront projects,
golf-front and villa communities.
In this segment, the main value driver is:
quality and uniqueness – views, brand, architecture, service level –
rather than simple price per sq ft.
Investors here are often less sensitive to yield and more focused on:
capital preservation,
long-term upside,
and lifestyle.
Dubai Property Transactions by Price Tier (Sep vs Oct 2025)
| Price Tier (AED) | Sep 2025 Share | Oct 2025 Share | MoM Change (pp) |
|---|---|---|---|
| < 500K | 2.4% | 3.6% | +1.20% |
| 500K – 750K | 11.5% | 12.6% | +1.10% |
| 750K – 1M | 12.6% | 12.5% | -0.40% |
| 1M – 1.5M | 27.5% | 24.1% | -3.40% |
| 1.5M – 2M | 11.8% | 12.1% | +0.30% |
| 2M – 3M | 16.1% | 14.7% | -1.40% |
| 3M – 5M | 9.9% | 11.8% | +1.90% |
| 5M – 10M | 5.6% | 5.5% | -0.10% |
| 10M+ | 2.3% | 3.1% | +0.80% |
7. Overall Conclusion and Practical Strategies for Investing in Dubai & Off-Plan Property
Bringing all the data together, this is the real picture of the Dubai property market today:
We are in a “strong but more stable” phase, not a bubble top.
Year-on-year price growth remains double-digit,
but month-on-month growth is modest and controlled.
For off-plan investments, that is a healthy backdrop: it lowers the risk of a sharp reversal at handover and supports a more predictable exit environment.
Off-plan is still the main growth engine (around 70% of transactions), but the style of investing is changing.
Off-plan flipping is becoming more selective and professional.
The smarter strategy now is:
choosing strong projects with good developers,
in strategic locations,
with payment plans that fit your financial plan,
and focusing on combined rental yield + long-term capital growth, not just quick premiums.
Mortgage and bulk financing show that serious capital still trusts Dubai.
Retail buyers are using leverage at comfortable LTV levels.
Institutional and bulk buyers are actively taking positions.
This keeps liquidity high and acts as validation for the market’s fundamentals.
New supply is large, but not random.
Developers are expanding the map with new communities:
Dubai South,
Dubai Islands,
The Valley,
new islands and waterfront clusters,
and upgraded villa and golf communities.
For you as an investor, this means the real opportunity is to understand:
which macro corridors (airport corridors, new highways, coastline expansions) will gain population,
and which micro locations inside those corridors have the best balance of price, quality and future story.
Three Practical Investment Profiles
A) Budget under AED 1M – First step into Dubai real estate
Focus on:
studios and 1BR apartments in growing areas with strong road access and planned public transport,
projects with realistic service charges and well-designed amenities.
Aim for:
solid yields (target 6–8%+),
decent resale liquidity in 3–5 years,
and exposure to areas where infrastructure and community facilities are still upgrading.
B) Budget AED 1M – 3M – Balancing growth and lifestyle
Consider:
off-plan townhouses in well-planned master communities,
2BR or 3BR apartments in strong lifestyle projects with real community feel (parks, schools, retail).
Aim for:
a property you could either live in or rent out,
with a balanced profile between rental income and capital growth,
and strong long-term fundamentals like schools, hospitals, malls and connectivity.
C) Budget AED 3M+ – Quality, scarcity and brand
Focus on:
waterfront communities,
branded residences,
golf communities and high-end villa projects,
and locations with limited future land supply.
Aim for:
wealth preservation in a hard asset priced in AED,
global-level lifestyle,
and a strong story for future resale to international buyers.
Share of Transactions by Key Price Segments (Oct 2025)
To simplify the view of the market, this chart groups all transactions into three core price segments: entry-level under AED 1M, mainstream AED 1M–3M, and high-end above AED 3M.
