A new Ministerial Decision allowing depreciation deductions on investment properties held at fair value, is a forward-thinking move stimulating the sectoral performance
● Secondary off-plan transactions reached AED 7.6 billion (+123%), with 2,680 transactions reflecting an 88% increase in volume.
● The primary ready market also demonstrated strong performance, registering 1,961 transactions worth AED 12.2 billion, representing a 66% year-over-year increase in volume and a 56% increase in value,
Property Finder, the leading property portal in the MENA region, has released its July 2025 market performance highlights, underscoring continued momentum in Dubai’s real estate sector. July saw an impressive AED 63.6 billion in sales transactions, representing a 27% year-on-year increase in value and 24% rise in transaction volume, fuelled by a surge in both off-plan and secondary market activity.
Amid this growth, recent policy shifts added further momentum. The UAE Ministry of Finance’s July 2025 announcement allows corporate tax deductions on investment properties held at fair value, in alignment with international accounting practices. This move has far-reaching implications for investors, offering depreciation based on current market valuations rather than historical cost.
Off-plan sales stood out as a key driver of this growth, particularly in the secondary off-plan segment, which recorded a staggering AED 7.6 billion (+123%) across 2,680 transactions (+88% YoY). The primary ready market also remained resilient, with 1,961 transactions worth AED 12.2 billion, reflecting continued confidence in newly completed properties.
Primary market
The primary market alone generated AED 31.9 billion, up 32% YoY, led by high-value deals in Wadi Al Safa 3 (16% of total value) and Dubai Investment Park (9% of total value).
Secondary sales overview
Meanwhile, the secondary market contributed AED 31.7 billion across 8,221 transactions, marking a 22% increase in value and an 18% rise in volume. Landmark transactions, including a AED 1.1 billion industrial land deal in Al Wasl, along with heightened activity in Ras Al Khor, Jumeirah Second, and Marsa Dubai, added further weight to the city’s growth trajectory.
Consumer Preferences
As seen consistently over the past 12+ months, apartments continue to dominate, comprising 62% of buyer interest and nearly 80% of rental searches. Notably, the market saw increased demand for smaller units, particularly one-bedroom and studios, as renters turned to ownership to hedge against rising rental prices. Studio apartments made up around 22% of rental searches but only 16% of purchase interest. In contrast, one-bedroom units account for 36% of apartment buy searches versus 40% of rental searches.
The market witnessed a slight increase in demand for purchasing apartments over villas, with the share of demand rising by 3% year-on-year, as compared to July 2024. Notably, interest grew in smaller units, specifically one-bedroom and studio apartments, outpacing demand for larger properties. This trend likely reflects the impact of rising rental prices, prompting tenants to shift toward ownership of smaller units to hedge against the increase in rent prices and secure long-term assets.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said, “With a powerful mix of market resilience, investor-friendly policies, and data transparency, Dubai continues to reinforce its position as one of the most attractive real estate markets globally. The new Ministerial Decision allowing depreciation deductions on investment properties held at fair value, is a forward-thinking move aligning the UAE’s tax framework with international best practices. It’s a prime example of how the country fosters long-term investor confidence by proactively evolving its regulatory landscape. Businesses can now claim tax deductions based on real-time market valuations, offering added flexibility and significant potential savings. This not only enhances reporting transparency but also incentivises growth for developers, funds, and corporates seeking to expand their portfolios. As Dubai shapes the future of real estate, Property Finder remains committed to empowering buyers and investors with the data and insights they need to make confident, future-focused decisions.”
