Dubai's residential market transactions see 23% rise in Q1
Dubai's residential market started the year on a strong note, amid sustained demand by a growing population and heightened investor interest.
According to the Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter of the year recorded a robust 23% y-o-y increase in transaction volumes.
Rachael Kennerley, Director – Research, says: 'In Q1 2025, off-plan sales continued as the cornerstone of transaction activity, representing 69% of all deals. The residential market witnessed robust supply, with more than 30,000 units launched during the quarter, most of which were apartments. This figure is more than double the volume recorded in the same period last year, as developers capitalised on strong market demand.'
The ready market — comprising transactions in completed and handed-over projects – made up the remaining 31% of transactions. Apartment sales accounted for the majority of transactions at 81% in this segment, reflecting its dominance in Dubai's housing stock.
Looking at the market overall, apartments dominated sales activity, accounting for 76% of all transactions. However, the villa and townhouse segment witnessed a notable resurgence, with transactions rising from 18% in the previous quarter to 24% in Q1 2025.
Prominent micro-markets located along the Al Khail corridor, including Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, accounted for 55% of total transaction volumes and 56% of all newly launched residential units - land saturation and limited affordability in the city's core residential locations have pushed development toward peripheral areas.
Dubai's prime residential market continues to perform well, underpinned by Dubai's sustained appeal for HNWIs. Demand was driven by the strong quality of life proposition, a low tax environment, easy business set up costs and the strength of the Golden Visa programme. Over 1,300 units were transacted at values exceeding the AED 10 million mark in Q1 2025 — marking a 31% y-o-y increase. Contrary to the wider market, villas dominated prime transactions with 73% of market share, recording a 52% y-o-y rise and a 4% q-o-q uptick.
According to Andrew Cummings, Head of Residential Agency: 'Demand across the prime residential segment in Dubai has not simply sustained but strengthened. Amid tariff wars, geopolitical uncertainties and unpredictable tax environments, the world's wealthy increasingly recognise Dubai's appeal, and developers are rising to the occasion. Villas in coveted locations, space and privacy are the preferred choice but supply remains restricted for the time being.'
Looking ahead, the outlook for Dubai's residential sector remains optimistic. Savills anticipates that amid global macroeconomic and political uncertainties, the emirate's political stability, competitive regulatory landscape, and business friendly ecosystem are expected to support ongoing population and investment inflows. The development pipeline is however significant and necessitates a balanced approach to supply and demand. – TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
an hour ago
- Arabian Business
‘Magnet for hedge funds', the UAE could change the $4.5tr global industry
A new research on the hedge fund industry has praised the effect Dubai and Abu Dhabi are having on what now has a size of over US$4.5 trillion. 'The state of the hedge fund industry', a report by the London-based IG Prime, said the Dubai International Financial Centre (DIFC) had attracted 60 hedge funds as of September 2024, and the Abu Dhabi Global Market (ADGM) is not far behind. UAE attracts hedge funds The UAE has 'emerged as a magnet for hedge funds' and other financial institutions in recent years. Some of the world's biggest hedge funds, including Millennium and Balyasny, have opened offices in the country, while overall employment in financial services has exploded to 44,000, up by two-thirds on the 2019 figure. The report quoted an earlier IG Prime/Hedgeweek report in September last year, which found that a clear majority (62 per cent) of the hedge funds surveyed identified Abu Dhabi and Dubai as the 'challenger' hubs. These locations were expected to see the most hedge fund growth, ahead of India, Latin America and the Nordics. Proximity to allocators was a key reason, but the report also highlighted tax advantages, time zone, and lifestyle as strong reasons. 'The huge wealth of the UAE, with the Gulf home to some of the world's largest allocators to alternatives, has advanced the case for having not only traders but business development leaders in the region,' the report added. The IG Prime report said the 'lightly regulated financial centres' such as Dubai and Abu Dhabi could lead to a global change and 'increase the pressure on regulators worldwide to carefully consider the impact of any new rules'. The UAE is an area of focus for the IG Prime, and Max Hayden, Global Head of Prime Brokerage, said: 'Everyone in the industry is talking about Dubai and Abu Dhabi and we're seeing headcount in both places increase, driven by new satellite offices started by big firms and, a relatively new phenomenon, new hedge funds launching there.' Turf war with PE firms With some of the more 'traditional' hedge fund strategies failing to deliver over the last few years, investor demand for hedge funds to improve their returns has led to more of them investing in a wider array of alternatives such as private credit, private equity and private real estate. The IG Prime research shows that 70 per cent of hedge funds now invest in private markets. As many as 61 per cent say they now invest in private equity, 45 per cent in private real estate, 39 per cent in private credit/debt and 38 per cent in infrastructure. Demand for investment in private markets from investors has also been driven by a global trend toward delisting from stock markets and companies holding off on IPOs for longer. These are expected to continue driving growth for private markets in the future. Hedge funds' expansion into private markets means they are increasingly competing with private equity funds, who have also been expanding from private equity into other private asset classes such as infrastructure, private credit and real estate. Chris Beauchamp, Chief Market Analyst at IG Prime, commented: 'The growth of hedge funds has meant that there has been a crowding of trades that have traditionally worked well for them. Arguably some of the opportunities have been arbitraged away, which has driven funds to look for new ways of getting index-beating returns. Many hedge funds are seeing private markets as an answer.' Private equity is the private market asset class with the fastest growth amongst hedge funds, with 58 per cent of hedge funds saying it's the area they've most increased exposure in during the last year. Hedge fund managers are also increasing their exposure in real estate (48 per cent), private credit (31 per cent), infrastructure (30 per cent) and natural resources (34 per cent). Despite its growing popularity, higher interest rates and uncertainty about the future of markets made private equity more difficult in 2024. That may change in the second half of this year as tariff levels continue to move down from their 'worst case' scenarios. While private equity suffered in 2024, private credit has continued to grow rapidly – 31 per cent of hedge funds identified private credit as the area of greatest growth within private markets. Stricter banking regulations and the withdrawal of bank lending have made private credit an important alternative for borrowers. Beauchamp added: 'While most hedge funds see private equity as the substantial growth investment in private markets, demand for hedge funds that invest in private credit have also been particularly strong. 'The question for hedge funds is what skills they bring to bear in these private market that might give them the edge over existing participants such as PE funds. Some will be competing directly with PE and private credit funds for the same investments. Others will be hoping that they can use the current tariff-related disruption to pick up assets priced for distress.'
Khaleej Times
an hour ago
- Khaleej Times
Prenups in UAE: Why more couples are signing contract before marriage
Across the Gulf, more couples are now choosing prenuptial agreements as a practical step before marriage. This is particularly happening in the UAE, where legal reforms have made them easier to draft, recognise, and enforce laws. While prenups can't prevent a marriage from breaking down — and may still carry a social stigma, legal experts say they can often reduce the bitterness and legal chaos that sometimes follow. A turning point came in 2021, when Abu Dhabi introduced Law No. 14/2021 on Personal Status for Non-Muslim Foreigners, followed by Resolution No. (8) of 2022, establishing a legal framework for civil marriages. For the first time, non-Muslim couples, mostly expats, could marry under a civil contract, independent of religious laws. 'As the ceremony is civilly based, it effectively allows for prenuptial agreements to be signed before marriage,' explained Tyne Hugo, Senior Associate, from law firm BSA. 'Couples now have the opportunity to tailor their financial arrangements from the outset, something that was previously unavailable or legally ambiguous.' With the UAE home to millions of expatriates from diverse cultural backgrounds, officials have increasingly worked to make the country feel like a long-term home, not just a stopover. 'To attract foreigners, the UAE must cater to their cultural norms, and in the West, prenups are not only common but expected,' Tyne added. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Learning from experience While prenups can't guarantee a marriage will succeed, they often serve as a powerful tool to reduce emotional and legal fallout if it fails. BSA shared that in one recent divorce case they handled, there was no prenup in place, but the couple was still able to amicably negotiate a financial agreement. 'That's not always the case,' Tyne said. 'We've seen divorces where couples fought over everything, including the cutlery. These kinds of disputes are often more about emotions than assets.' By contrast, couples who sign prenups typically experience less conflict and faster resolutions. 'There's clarity,' Tyne added, 'and that clarity helps prevent unnecessary legal battles.' One such experience was of Maha A., a Lebanese designer who got married last year. 'I was surprised when my fiancé suggested a prenup,' she recalled. 'At first, I felt hurt. But he explained it wasn't about preparing for divorce, it was about protecting each other. We both have separate assets and wanted to keep things clear. In the end, it actually made me feel more secure.' She said the process also forced them to have difficult, but important, conversations about spending habits, savings goals, and potential risks. 'It wasn't romantic, but it was responsible.' A tool for protection Although still an uncomfortable topic in some families, prenups are increasingly being viewed not as a threat to marriage but as a means of clarity and mutual understanding. 'Prenups don't just deal with how assets are split in case of a divorce; they can also outline how assets are managed during the marriage,' the Tyne noted. 'Partners can decide whether to have joint or separate estates and shield themselves from each other's financial liabilities. If one person goes into debt, the other can ensure their assets are protected from creditors.' Custom fit, not culture clash Cultural differences still shape how prenups are perceived. In more conservative families, the idea of signing a legal agreement before marriage can feel like an admission of doubt or distrust. 'Some cultures may see this as a betrayal of what a marriage is supposed to be,' Tyne said. 'But the beauty of a prenup is that it's entirely customisable. It can reflect any cultural or religious values the couple deems important.' Yet younger couples, especially those from dual-nationality backgrounds or raised in more globalised environments, are seeing prenups in a new light. 'Couples are beginning to realise that love and legal planning are not mutually exclusive,' said Rania F., a licensed marriage and family therapist based in Dubai. 'A prenup doesn't mean you expect a divorce, it just means you're mature enough to talk about money, expectations, and personal boundaries before problems arise.' Rania noted that more clients are now asking about prenups during premarital counselling, particularly when one partner owns a business, has children from a previous marriage, or carries significant debt.
Gulf Business
an hour ago
- Gulf Business
Banking on inclusion: How tech is reshaping financial access in the GCC
Image: Supplied In the bustling cities and vast deserts of the Arab world, a quiet transformation is taking place, one that doesn't always make headlines but has the power to change lives. It's the transformation of financial inclusion, where technology becomes the great equaliser, enabling access, dignity, and opportunity for all. Over the past few decades, millions have arrived in the region with aspirations of a better life. Among them are domestic helpers, construction workers, delivery riders, drivers, and retail attendants, individuals who form the backbone of many economies but have long remained excluded from the formal financial system. For years, many migrant workers were paid in cash, had no access to bank accounts, and relied on costly and time-consuming remittance services. They were often invisible to providers of essential financial services. This exclusion wasn't due to a lack of ambition but to systemic barriers such as documentation requirements, high fees, and limited financial literacy. Today, this is beginning to change. Advances in technology and the widespread adoption of smartphones are opening new doors. In the UAE, where expatriates make up nearly Growing mobile market The mobile banking market in the GCC is projected to grow at a compound annual growth rate (CAGR) of 12.5 per cent from 2025 to 2033, driven by increasing smartphone penetration, growing digital literacy, and proactive regulatory support. In the UAE, the combined prepaid card and digital wallet market is expected to expand from But access alone is not enough. Without the knowledge to use these tools safely and wisely, many remain vulnerable to scams, debt traps, and poor financial habits. Financial literacy is the essential counterpart to financial access. That's why human-centered design is key. Solutions must be simple, multilingual, culturally relevant, and built with empathy. Through initiatives like myZoi Money Tips, more than 2,200 blue-collar workers have participated in 12 community workshops and one large-scale community event, while digital content has garnered over 22 million views across social media, the app, and the website. The team listens closely to the needs of users, visiting shared accommodations, conducting in-depth interviews, and continuously refining services to reflect real challenges and aspirations. And it's working. Tangible shifts in engagement and trust are already being seen. Breaking cycles of inequality and enabling economic mobility Financial inclusion isn't just about banking; it's about breaking cycles of inequality and enabling economic mobility. It's about recognizing that inclusion is not a luxury, but a right. To build a more inclusive financial ecosystem, collaboration is essential. Governments, regulators, fintech innovators, employers, and civil society must work together to ensure that no one is left behind. With the UAE's vision, and initiatives like the Central Bank's Financial Infrastructure Transformation ( The journey is far from over. But with the right tools, the right mindset, and strong partnerships, every worker and every family can be empowered to turn their dreams into reality. The writer is the CEO at myZoi. Read:
