In July 2025, the value of real estate sales in Dubai reached an impressive AED 63.6 billion (approximately $17.3 billion), marking a 27% increase compared to the same month last year. Meanwhile, the number of transactions rose by 24%. This growth was driven by the revitalisation of the off-plan and secondary markets. Additionally, companies are now permitted to take depreciation allowances on investment property measured at fair value, opening up new opportunities for tax optimisation.
Growth in key market segments
The primary market generated AED 31.9 billion (USD 8.7 billion) during the reporting month, marking a 32% increase compared to 2024. Leaders in high-value transactions included Wadi Al Safa 3, accounting for 16% of the primary market, and Dubai Investment Park, with a 9% share.
The secondary market also demonstrated robust growth, contributing AED 31.7 billion (USD 8.6 billion) through 8,221 transactions. This represents an increase of 22% in value and 18% in the number of transactions on an annualised basis.
Impact of tax reform
The UAE Ministry of Finance's updated tax policy, which came into effect in July 2025, permits depreciation deductions to be calculated based on a property's current market value rather than its historical price. This approach has been well received by both investors and analysts, as it enhances reporting transparency and stimulates market development.
Expert opinion
Local experts note that Dubai's combination of market stability, investor-friendly conditions, and high data transparency makes it one of the world's most attractive real estate markets. The UAE Ministry of Finance's new decision is an example of forward-looking regulation that aligns the tax system with global best practices.
The ability to calculate tax deductions based on current market value provides businesses with flexibility and reduces costs, thereby strengthening the confidence of long-term investors. This policy increases reporting transparency and stimulates the growth of developers, investment funds and corporations looking to expand their portfolios.