Dubai's real estate sales surge to record highs in Q1

Khaleej Times

17-04-2025

Dubai's real estate market has kicked off 2025 with unprecedented momentum, achieving record-breaking transaction volumes and values in the first quarter, according to data from market experts.
The emirate saw 45,474 transactions valued at Dh142.7 billion, reflecting a 22 per cent increase in volume and a 30 per cent surge in value compared to Q1 2024. This remarkable growth, driven by both off-plan and ready property segments, underscores Dubai's enduring appeal to global investors and residents amid a robust economic backdrop, according to Q1 Insights from Property Finder, a leading property portal,
The ready property market achieved historic highs, with 20,034 transactions worth Dh87.5 billion, marking a 21 per cent rise in volume and a 34 per cent increase in value year-on-year. Meanwhile, the off-plan segment, which accounted for 56 per cent of total transactions, recorded 25,440 transactions valued at Dh55.2 billion—a 24 per cent increase in both volume and value from Q1 2024's Dh44.5 billion. 'Dubai's off-plan market reflects strong long-term confidence among investors, fuelled by the city's ambitious development pipeline,' said Haider Ali Khan, CEO of Bayut and head of Dubizzle Group Mena.
The surge in transactions is attributed to sustained demand from end-users and investors, spurred by rising rental prices that have pushed residents toward homeownership. Dubai's appeal as a global hub, bolstered by its tax-friendly environment and robust economy, continues to attract high-net-worth individuals, particularly in the luxury sector. 'The luxury market remains a hotspot, while sustainable, master-planned communities are increasingly popular among buyers seeking all-inclusive lifestyles,' Khan noted. Price trends across Dubai's real estate segments reflect this demand.
According to Bayut's Q1 2025 analysis, villa prices in Damac Hills soared by 20.7 per cent, the highest increase recorded, while apartment prices in affordable segments climbed by up to 10 per cent. Mid-range apartments saw price hikes of 1 to 11 per cent, though Business Bay recorded a 3.09 per cent decrease in transactional prices, likely due to a shift toward smaller, budget-friendly units. Luxury properties maintained strong growth, with villa prices rising by 11 to 21 per cent and apartments by up to 11 per cent.
Popular areas for budget-conscious buyers include Dubai Residence Complex, Dubai Silicon Oasis, Damac Hills 2, and Dubailand, while mid-tier buyers gravitated toward Jumeirah Village Circle, Business Bay, Al Furjan, and Reem. Luxury investors continued to favor Dubai Marina, Downtown Dubai, Arabian Ranches, and Damac Hills.
Comparatively, Abu Dhabi's real estate market also showed strength, with a 75 per cent year-on-year increase in the value of existing property sales and a 9 per cent rise in volume, driven by large commercial deals. However, Dubai's market outpaced its neighbor in transaction volume and value, cementing its position as the region's real estate powerhouse.
Experts attribute Dubai's resilience to strategic urban planning and investor-friendly policies. 'The emirate's ability to balance supply and demand while fostering sustainable growth is key,' said Mark Thornton, a senior analyst at Knight Frank Mena. He pointed to Dubai's focus on master-planned communities and green developments as a draw for environmentally conscious buyers. Thornton also noted that the city's real estate market ranks among the top globally, with Q1 2025 data surpassing performance in major hubs like London and New York.
However, challenges loom. Property market experts cautioned that rising interest rates and global economic uncertainties could temper demand if not carefully managed. 'While Dubai's market is robust, affordability concerns in the mid-tier segment may emerge if prices continue to climb,' they said. The Dubai Land Department's data also suggests that inventory supply must keep pace with demand to prevent overheating in high-growth areas like Damac Hills.
Recent reports from CBRE indicate that Dubai's residential property prices rose by 18 per cent on average in 2024, with Q1 2025 maintaining this upward trajectory. The firm projects a 10 to 15 per cent price increase for 2025, driven by limited prime inventory and strong foreign investment. 'Dubai's real estate market is on a sustainable growth path, but policymakers must ensure balanced development to maintain long-term stability,' said Sarah Mahmoud, CBRE's head of research for the Middle East.