05-04-2025
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.
