AirDXB's Real Estate & Short Let Market Report Q3 2025

The Dubai property market is evolving, and fast. Whether you're an investor, landlord, or simply curious about the turbulance of Dubai’s property landscape, The AirDXB Dubai Real Estate and Short Let Market Report delivers a clear, data-driven view of what’s really happening, backed by credible sources.

Dubai Real Estate Transaction Volume Up, But Value Slips

While Q3 saw 59,287 property transactions, up +11.7% quarter-on-quarter, total transaction value fell by -7.6% compared to Q2. This divergence suggests that buyers are scaling back, opting for smaller, more affordable units amid rising price per square foot. It’s a sign that confidence in the market is shifting, from bullish investment to cautious value-seeking.

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The Resale Market Sees Sharp Decline in Mid-2025

Dubai’s secondary sales market has shown a marked slowdown in recent months, with resale transaction volumes falling by 31.15% between April and August 2025.

After peaking at 7,068 transactions in April, volumes declined steadily to 4,866 by August.

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Oversupply Looms Large

The AirDXB Dubai Real Estate & Short Let Market Report Q3 2025 reveals a staggering 87,900 new units launched in H1 2025, with 72,000+ homes expected to be handed over this year. That’s a 171% increase from 2024. While developers race to meet demand, absorption is lagging, especially in areas like Jumeirah Village Circle and Mohammed Bin Rashid City, where inventory is piling up. This glut is already impacting prices and rental yields, and with 100,000 more units projected for 2026–2027, the pressure is only set to increase.

Long Term Rentals: Cracks Beneath the Surface

The long term rental sector is facing serious headwinds. Despite a growing population of 5.5% YOY according to Dubai Population Clock, Property Monitor shows rental renewals dropped by 27.5% from January to September 2025. Tenants are walking away, lured by better deals and more choice. Landlords are offering incentives like free rent just to retain occupants. This is a clear indication that the balance of power has shifted. It is now a tenants market!

Yields are also under pressure, falling from 6.99% to 6.76% year-on-year. For investors relying on steady long-term income, this trend is troubling. With oversupply mounting and tenant loyalty waning, the traditional rental model is losing its edge.

What This Means for Investors

Dubai’s property market is no longer a guaranteed win. The data shows a clear shift: long term rentals are weakening, resale volumes are declining, and oversupply is threatening returns. Investors must rethink their strategy.

Short Let Management: The Smarter Strategy

In stark contrast to the struggling long term rental market, short let management continues to deliver reliable performance. At AirDXB, we have consistently achieved market leading occupancy and excellent guest satisfaction. Recognised as Dubai’s Most Trusted Short Term Rental and Property Management Agency, our award-winning team provides a comprehensive service designed to thrive in uncertain conditions. From dynamic pricing to seamless guest experiences, we help property owners maximise returns while navigating market volatility.

Short term rentals offer what long term contracts increasingly cannot: flexibility, adaptability, and access to Dubai’s thriving tourism sector. Between January and July 2025, Dubai welcomed 11.17 million overnight visitors, a five percent increase compared to the same period in 2024. This surge in demand is driving a shift in investor strategy, with more owners turning to short let solutions as a dependable and profitable alternative.

In today’s unpredictable market, short let is not just a choice, it is the smarter investment strategy!

Check out the full report for more information