Dubai’s luxury residential market is showing signs of maturity after an exceptional first half of the year, transitioning from record-breaking growth to sustainable strength, says a new report.

According to the latest Q3 2025 Market Report by betterhomes, 737 luxury property transactions were recorded, each priced at AED15 million and above, during the third quarter of 2025. This signals a natural recalibration following the city’s record-setting performance earlier in the year. Of these, 492 were secondary sales and 245 were off-plan transactions, underscoring ongoing buyer confidence in Dubai’s long-term appeal and supply pipeline.

While luxury secondary sales declined from the historic peak of 1,153 transactions in Q2, volumes remain well above the city’s long-term average, reflecting sustained strength at the upper end of the market. This signals maturity rather than slowdown, suggesting Dubai’s luxury segment is entering a more sustainable growth phase, it said.

“Dubai’s luxury real estate market is transitioning from hypergrowth to healthy stabilisation,” said Louis Harding, CEO of Betterhomes. “After two years of record-setting activity, what we’re seeing now is a recalibration. Prices remain strong, demand from international buyers is steady, and quality continues to drive decisions at the top end of the market. This is the sign of a confident, enduring market, not a cooling one.”

Among top-performing luxury communities in Q3, The Oasis, Dubai Hills Estate, Palm Jumeirah, Mohammed Bin Rashid City, and Nad Al Sheba led secondary sales, while Jumeirah, Palm Jumeirah, Downtown Dubai, Mohammed Bin Rashid City, and Business Bay topped off-plan transactions.

The off-plan segment, though slightly lower quarter-on-quarter, continues to outperform historical norms, bolstered by Dubai’s reputation as a global safe haven, its stable currency environment, and consistent foreign investment inflows.

“The evolution of Dubai’s luxury sector mirrors the city’s own maturity,” Harding added. “This quarter’s data reinforces the city’s position as one of the world’s most resilient luxury markets, where stability, not speculation, is now setting the pace.”  -TradeArabia News Service