Dubai: Dubai’s population has crossed four million residents, marking a major milestone for the emirate. The increase is directly supporting strong housing demand and record property transactions.
The city added nearly 18,000 residents in a single month by the end of August 2025. Experts say the steady rise in population is driven by job growth, business expansion, and continued international migration.
According to property consultancy Savills, the growing population is creating demand across both rental and property ownership markets.
New residents include mid-income professionals looking for apartments near business areas, as well as high-net-worth individuals buying villas and waterfront homes.
Record Property Transactions
Data from the Dubai Land Department shows that property sales exceeded Dh680 billion in 2025, with more than 200,000 transactions completed during the year.
Total real estate transaction value, including mortgages and property transfers, reached around Dh919 billion, the highest level ever recorded.
The fourth quarter of 2025 alone saw sales worth more than Dh187 billion, making it the strongest quarter in the emirate’s history.
Savills said this growth reflects steady demand from both investors and people buying homes for personal use.
Prime Market Remains Strong
Dubai’s luxury property segment also performed well in 2025. Nearly 6,000 transactions above Dh10 million were recorded during the year.
Limited supply in established prime areas, along with continued wealth migration into Dubai, helped support both prices and rental rates.
Analysts noted that Dubai outperformed many global property markets during 2025 due to strong economic activity and population growth.
Lower Interest Rates Support Buyers
Recent interest rate cuts by the UAE Central Bank are expected to reduce mortgage costs gradually.
Experts say lower borrowing costs usually increase buyer activity, especially among residents who had postponed purchasing decisions.
Dubai continues to offer competitive rental yields compared to many global cities, making it attractive for investors.
Focus on Future Growth
Industry leaders say the next stage of the property market will depend on balanced development and infrastructure planning.
With Dubai aiming to reach nearly six million residents by 2040, supply management and quality housing development will be key factors.
Population growth, improved financing conditions, and strong transaction activity continue to support confidence in Dubai’s residential market as 2026 begins.
