Dubai real estate sector saw over $31bn of transactions in Q1; rents surge with one neighbourhood seeing 26% price hike
Dubai's real estate market recorded a total transaction value of AED114.08bn ($31.1bn) in the first quarter of 2025, according to Springfield Properties.
This represents a 29.19 per cent increase compared to the same period in 2024, with 42,269 transactions completed, itself a 23.11 per cent rise year-on-year.
Off-plan properties have been a significant contributor to this growth, with 24,920 transactions in Q1 2025, up from 20,006 during the same period last year.
Dubai real estate Q1 2025
The ready market also saw notable gains, with transaction values increasing from AED43.9bn ($12bn) in Q1 2024 to AED60.2bn ($16.4bn) in Q1 2025.
The rental market has mirrored this upward trend, with average rents per square foot rising by 14 per cent, from AED71 ($19) to AED81 ($22).
Notably, Dubai South and Al Furjan led this growth, posting increases of 26.37 per cent and 21.56 per cent, respectively.
Farooq Syed, CEO of Springfield Properties said: 'The sustained growth in Dubai's real estate market reflects a strategic alignment with the emirate's long-term vision for economic diversification and urban development.
'The significant uptick in both off-plan and ready property transactions underscores the confidence investors have in Dubai's robust regulatory framework and its commitment to infrastructural excellence.
'As we progress through 2025, the market is poised to offer further opportunities, driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns'.
Market projections suggest that property prices are expected to increase by 5 per cent to 10 per cent throughout 2025, supported by the anticipated delivery of approximately 72,365 residential units.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
9 hours ago
- Arabian Business
How $35bn Al Maktoum International Airport expansion is driving major Dubai South real estate investment boom as property prices tipped to grow 20%
The AED128bn ($35bn) expansion of Al Maktoum International Airport in Dubai South is fuelling a real estate boom that has major implications for the wider UAE economy, according to Betterhomes analysis. Property transactions in the area exceeded AED15bn ($4.1bn) in the first five months of 2025 and prices could increase by up to 20 per cent in the near term said analysts. Spanning 70 sq km, the new Al Maktoum Airport will feature five runways and 400 aircraft gates and is expected to accommodate more than 260m passengers annually upon completion. Al Maktoum International Airport drives Dubai South real estate growth More than just an enhancement to the aviation sector, however, the project is poised to drive growth across real estate, hospitality, and the broader economy. Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development, said Betterhomes. Louis Harding, CEO of Betterhomes, said: 'The development of Al Maktoum Airport is not just a milestone in aviation, but a catalyst for the next chapter of Dubai's real estate growth. We're already seeing the ripple effects in Dubai South. This is the early stage of a long-term growth cycle.' Rental rates have risen 20 per cent year-to-date, with a sharp increase in both off-plan and ready property sales. Betterhomes has also recorded more than 20 per cent monthly growth in buyer and tenant inquiries, while institutional capital is entering the market, most notably a $1bn investment partnership between a major Abu Dhabi-based asset manager and Brookfield. Property prices in Dubai South are forecast to rise by 15–20 per cent in the near term. Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent AED1bn ($272m) contract award for the airport's second runway signals continued momentum. Average prices in surrounding areas remain up to 60 per cent lower than in prime districts like Downtown Dubai, offering attractive value. A similar growth pattern was seen following the launch of Terminal 3 at Dubai International Airport in 2005, when surrounding areas such as Dubai Marina and Al Barsha experienced substantial appreciation. Between the launch and early 2008, average sale prices had nearly doubled. With demand surging and a long-term development pipeline in motion, the neighbourhood is emerging as one of the UAE's most promising real estate growth corridors. The $35bn terminal expansion is set to create employment and housing opportunities for over one million people, with far-reaching effects across multiple sectors. As job creation increases, population growth is expected to follow, driving greater demand for housing and supporting broader economic development. Surrounding areas are already experiencing a rise in transactions, property prices, rental rates and yields. The aviation sector alone is projected to contribute over 30 per cent to the emirate's GDP by 2030.
Zawya
2 days ago
- Zawya
Dubai South launches South Square, sells out first tower within three hours
Dubai, United Arab Emirates – Dubai South Properties has announced the launch of South Square, a new luxury residential development strategically located along Sheikh Mohammed Bin Zayed Road, just minutes from the recently announced new terminal at Al Maktoum International Airport. The S4 Tower within the project was launched and completely sold out within just three hours. The project reinforces Dubai South's vision of creating integrated, people-centric communities and comes in response to strong demand from investors and end-users drawn to the area's growing appeal. South Square is a thoughtfully-planned community offering over 550 apartments in a mix of one-, two-, and three-bedrooms layouts. Elegantly designed with a focus on wellbeing and convenience, the community blends modern architecture with wellness-inspired amenities such as landscaped outdoor spaces, seed farms, walking trails, scenic water features, a yoga deck, multi-age fitness and leisure zones, as well as essential retail, dining outlets, and co-working spaces. Designed for families and individuals alike, South Square promotes meaningful connections between people, nature, and healthy living—delivering a residential experience that reflects the evolving expectations of today's urban residents. Prices for units start at AED 1.1 million, with completion scheduled for Q4 2028. In his comments, Nabil Al Kindi, CEO of Dubai South Properties, said: 'In the past few years, we have witnessed a sharp increase in demand for residential options in Dubai South, driven by its strategic location, modern infrastructure, and exceptional connectivity to the rest of the city. South Square is our response to this momentum—offering spacious homes, wellness-focused amenities, and in proximity to Al Maktoum International Airport and key roads. This project, like all our communities, is designed not just for living, but for enhancing quality of life through value-driven spaces focused on wellness and human connection.' With overall residential sales exceeding AED 19 billion during 2024, Dubai South has quickly gained prominence amongst savvy investors. The area continues to reinforce its residential offerings with amenities for the comfort and convenience of the residents in the community. These include public parks; sports courts; retail shops; a 50,000 square-foot hypermarket, a mosque; a petrol station; and a public bus route connecting the district to the Expo Metro station. Additionally, a GEMS Founders School at Dubai South, opened its doors last year. Currently, The Residential District is home to over 30,000 residents who enjoy its distinctive lifestyle, range of amenities, and several gated residential communities with apartments and townhouses.
Zawya
2 days ago
- Zawya
Dubai South to complete new luxury housing project in Q4 2028
Dubai South Properties expects to complete construction on South Square, a luxury residential development close to the new terminal at Al Maktoum International Airport, in the fourth quarter of 2028. The tower was completely sold out within just three hours, the developer said in a statement. South Square houses more than 550 apartments in a one-, two-, and three-bedroom configuration. No financial details or contractor names were disclosed. 'In the past few years, we have witnessed a sharp increase in demand for residential options in Dubai South, driven by its strategic location, modern infrastructure, and connectivity to the rest of the city,' said Nabil Al Kindi, CEO of Dubai South Properties. (Writing by P Deol; Editing by Anoop Menon) (
