Savills: Dubai Markets Maintain Strong Momentum for Q3 2025
The residential sector saw record transactions, while office rents climbed, driven by economic growth and investor confidence
Savills latest Dubai Market in Minutes reports highlight continued resilience across the emirate’s office and residential sectors in Q3 2025, driven by strong economic performance, population growth, and sustained investor confidence.
Dubai’s office sector continued its positive trajectory in Q3 2025, supported by strong non-oil economic growth and a steady influx of new companies. Average office rents reached AED 233 per sq ft, up 4.5% quarter-on-quarter and 35% year-on-year, reflecting sustained demand despite limited new supply. Leasing activity remained buoyant throughout the summer months, a period traditionally marked by a slowdown, with expansion, relocation, and new market entries collectively dominating transactions. According to Savills, technology and media and pharmaceutical firms each accounted for 29% of total leasing activity, followed by consulting and energy sectors at 14% each.
Toby Hall, Head of Commercial Agency, Middle East at Savills, said: “Dubai’s office market continues to defy expectations, with strong leasing activity across both established and emerging submarkets. The combination of limited Grade A availability and sustained occupier confidence has maintained upward pressure on rents, while new developments such as branded and strata-led offices are reshaping future demand.”
Approximately 1 million sq ft of new office space is expected for completion between late 2025 and early 2026, much of which has already been pre-leased, a testament to strong forward demand. Developers such as Rove Hotels, Danube, and Capital One have introduced innovative projects targeting SMEs and fractional ownership models. The report also noted that Dubai’s population surpassed 4 million during the quarter, while the UAE’s GDP is forecast to grow 4.7% in 2025, reinforcing long-term demand for high-quality commercial real estate.
Dubai’s residential sector sustained its record-breaking performance in Q3 2025, underpinned by continued population inflows, growing homeownership trends among expatriates, and rising levels of high-net-worth individual (HNWI) migration. Transaction volumes remained above 50,000 for the second consecutive quarter, far surpassing historical averages. Apartments dominated the market, accounting for 86% of all transactions, up from 75% in Q1, while off-plan sales represented 69% of total deals, highlighting investor confidence in new launches.
Andrew Cummings, Head of Residential Agency, Middle East at Savills, commented: “Dubai’s residential market continues to attract a diverse pool of buyers, from end-users seeking long-term value to investors drawn by the emirate’s stable regulatory framework and global appeal. The growing preference for homeownership reflects the city’s transition from a transient to an established, family-friendly market.”
Average rates per square foot reached new highs for both apartments and villas, supported by luxury project launches across key master developments. In the prime residential segment, approximately 1,500 transactions exceeded AED 10 million, with villas accounting for 73% of this activity. Q3 2025 also saw 8,500 new units completed, bringing total completions for the year to nearly 30,000, matching 2024’s annual total. Over 250,000 units are expected to be delivered by 2028, indicating a strong long-term pipeline.
Population growth remains a key driver, with Dubai’s population expected to reach 5 million by 2030. The emirate continues to benefit from global wealth migration, with Henley & Partners forecasting 9,800 millionaires to relocate to the UAE in 2025Savills expects Dubai’s real estate market to maintain its strong fundamentals through the remainder of 2025.
The office sector is set to experience moderate rental growth as new Grade A completions enter the market, while the residential market continues to see robust demand driven by population growth, quality-of-life advantages, and investor confidence.
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