Dubai Real Estate Market surges in April: Residential sales jump 61% YOY, office rents climb 22.4%

Zawya

09-05-2025

Dubai, UAE - Dubai's real estate market posted exceptional results in April, with residential sales transactions reaching 17,447—an impressive 61% increase compared to the same month last year—while commercial rental activity surged, including a 22.4% rise in average office rents and a sharp 40.8% jump in warehouse rates. These figures, published in the April 2025 report from Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, underscore Dubai's continued strength as a magnet for global capital, even amid wider economic uncertainty and shifting investor sentiment worldwide.
In the residential sector, transaction volumes not only outpaced April 2024 but also exceeded the monthly average of Q1 2025 by over 20%, highlighting strong underlying demand. A softer US dollar improved affordability for overseas buyers, further fuelling interest in both off-plan and secondary markets. International investors remain drawn to Dubai's combination of lifestyle, high returns, and relative value compared to other global cities.
Commercial real estate echoed this momentum, supported by sustained population growth and an increasingly diversified economy. Core business districts such as Business Bay and Jumeirah Lake Towers saw strong absorption and limited new stock, pushing average office rents up more than 22% compared to April 2024. In parallel, the logistics and industrial sector is experiencing an unprecedented surge, with warehouse rents climbing nearly 41% year-on-year—a result of surging demand from e-commerce, manufacturing, and trade sectors seeking well-located, high-specification space.
'Dubai continues to set itself apart on the global real estate stage,' said Daniel Hadi, CEO of Engel & Völkers Middle East. 'Buyers and investors are responding to the city's unique combination of quality lifestyle, competitive yields, and policy stability. This performance underscores Dubai's growing appeal to global investors, developers, and end-users seeking long-term growth and value in a secure, well-managed environment. The momentum reflects strong demand fundamentals and increasing recognition of Dubai as a safe haven and long-term growth market.'
Residential activity remained broad-based, with both established and emerging communities seeing sustained demand. Jumeirah Village Circle remained the city's highest transacting area, appealing to end-users and investors drawn to its relative value. DAMAC Islands gained momentum, meeting the growing demand for affordable waterfront villas and townhouses. Meanwhile, Business Bay and Dubai Marina remained among the top-performing apartment markets, combining strong lifestyle appeal with consistent investor interest.
While overall prices are still trending upward, Engel & Völkers noted early signs of stabilisation in mature communities—an indicator of a more balanced, sustainable market. Strong fundamentals, investor-friendly policies, and a transparent regulatory environment continue to support Dubai's long-term growth trajectory.
On the commercial side, top-performing areas for transaction activity included Business Bay, Motor City, JLT, and Barsha Heights—all offering strong fundamentals and strategic advantages for businesses across sectors. The limited availability of Grade A office space, coupled with a steady influx of companies establishing regional headquarters in Dubai, is expected to keep upward pressure on rents through the second half of the year. Meanwhile, warehouse operators continue to compete for space near trade corridors, free zones, and last-mile delivery hubs, driving sustained rental growth across key industrial clusters.
As Dubai cements its position as a gateway between East and West and as a magnet for innovation and investment, Engel & Völkers Middle East forecasts continued momentum through the remainder of 2025. With strong market fundamentals, resilient buyer sentiment, and record levels of global interest, the city's property market is on track to deliver another record-breaking year.
About Engel & Völkers: Engel & Völkers is one of the world's leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. For over 45 years now, the wishes and needs of private and institutional clients have had top priority, giving rise to the ongoing development of a range of services relating to all aspects of real estate. Sales and leaseholds, as well as consultancy for various investment opportunities in the real estate segment are among the core competencies of more than 16,500 people operating under the Engel & Völkers brand. The company is currently operating in over 35 countries on five continents. Intensive training schemes in its in-house real estate Academy and the high level of quality assurance governing its systematically structured service provision are key factors that account for the company's success. Engel & Völkers develops digital tools and IT products on an ongoing basis in order to keep its service as efficient as possible. In doing so, the company is setting new standards in digital solutions for property brokerage.
About Engel & Völkers Middle East: Established in 2014, Engel & Völkers Middle East has its offices in Dubai, United Arab Emirates. The team consists of over 200 trusted agents, each focusing on premium residential and commercial properties, serving as experts in their respective areas. The company recently established a separate entity for commercial real estate (Engel & Völkers Commercial Middle East). Engel & Völkers Commercial serves as an entry point to exceptional commercial real estate opportunities in Dubai, from attractive office spaces to industrial complexes. The Private Office provides services for affluent clients and has access to premium real estate globally. Whether you're in the market to rent, buy, or sell a property, Engel & Völkers Middle East is a perfect choice to achieve your real estate goals.