A quick look back at Dubai’s real estate market highlights a history of strong resilience, visionary leadership, and the remarkable success of a young yet dynamic industry.
The modern property era in Dubai truly began in 2002, when His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued the landmark decree granting freehold ownership rights to non-UAE nationals. At that time, Dubai’s population stood at just over 1 million, with expatriates making up approximately 75%—a pivotal move that unlocked the city’s real estate potential and reshaped its global investment appeal.
Beginning in 2003, Dubai’s property development rapidly expanded beyond the traditional Creek area, with new communities taking shape across the emirate. That year, 3,364 properties were completed in Emirates Living, marking a significant step in suburban residential growth. In 2004, five new projects were launched in Dubai Marina, introducing 654 apartments laying the foundation for what would become one of the city’s most sought-after waterfront communities. Just 15 years later, Dubai Marina has transformed into a fully developed and vibrant district.
By 2005, the growth continued with Arabian Ranches handing over 829 homes, while Dubai Marina added another 319 apartments to its skyline solidifying the city’s shift toward large-scale, master-planned communities.
In 2006 Emirates Living expanded by a further 5,990 properties and in the Marina 3,555 apartments were handed over. 2007 saw the introduction of Jumeirah Lake Towers with 2,665 apartments completed, 2,153 apartments in the Marina and 1,393 more units in Arabian Ranches. 2008 and 2009 saw a combined 52,297 properties come onto the market 2,409 on the newly formed Palm Jumeirah, the first ‘affordable’ properties in Discovery Gardens amounting to a staggering 25,412 apartments, Dubai Silicon Oasis 1,425 properties and 6,250 in Jumeirah Lake Towers.
At the peak of Dubai’s property boom in 2007 RERA (Real Estate Regulatory Authority) was formed which brought various Rules and Regulations that streamlined transactions and registrations of ownership for land/property in Dubai.
In 2008, property transaction data became publicly accessible for the first time in Dubai. At that time, average prices stood at AED 2,197,956 for villas and townhouses, and AED 1,375,068 for apartments. That same year also marked the introduction of Oqood, following the implementation of Law No. 13. This law outlined key obligations for developers and laid the foundation for the formal registration of off-plan properties through the Oqood system—ushering in a new era of transparency and regulation in the market.
2009 saw the collapse of major banks around the World closed down and billions of dollars were lost globally in all sectors. Unfortunately, it impacted the Dubai property market around 2010 villa/townhouses saw a drop of over 8% in 12 months and apartment sale prices saw a drop of 49% (average price of an apartment across Dubai (AED698,280).
In Q2 2015, property prices had significantly rebounded from 2010 levels. Average prices for villas and townhouses rose by 13.3%, while apartments saw an even stronger growth of 37%. Overall, the average residential property prices in 2015 surpassed their pre-crash peak, marking a full market recovery.
After a period of price declines from 2016 through early 2019, Dubai’s real estate market began to show signs of recovery by late 2019. At that time, average apartment prices rebounded to AED 1.67 million and villas to AED 3.25 million. Fast forward to Q2 2025, and the market has now enjoyed over three years of consistent growth, reaching new heights in both transaction volume and value.
This quarter alone recorded 49,606 property transactions—an impressive 82% increase compared to Q2 2023. The total value of these transactions surged to AED 147.6 billion, with the average sale price climbing to AED 2.98 million, reflecting a 15.3% increase over the past two years. Price per square foot also rose to AED 1,823, further highlighting the market’s strong upward trajectory.
Fueling this momentum is a growing wave of investor confidence and new government-led incentives, including the recently introduced first-time buyer initiative, designed to make property ownership more accessible for UAE residents. Interestingly, resale properties continue to offer more competitive pricing than off-plan developments, prompting a surge of demand in the secondary market.
Dubai’s real estate sector continues to evolve, with strong fundamentals and dynamic opportunities across both the resale and off-plan segments.