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Khaleej Times
17-04-2025
- Business
- Khaleej Times
Dubai's real estate sales surge to record highs in Q1
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.
Khaleej Times
03-04-2025
- Business
- Khaleej Times
Land deals lead the way in Dubai real estate market
Land deals emerged as a major factor in Dubai's real estate market in the first quarter, recording a 193.8 per cent jump in plot sales worth Dh35.5 billion from 2,926 transactions. Dubai's real estate market has continued its buoyant start to 2025, recording total sales worth Dh142.7 billion in Q1, the second highest quarterly figure on record. This represented a 30.3 per cent year-on-year leap in value, while the 45,485 overall sales transactions also meant a 22.8 per cent year-on-year increase. A market update issued on Thursday by fäm Properties revealed that the Q1 results were only fractionally down on the all-time quarterly sales record of Dh147.2 billion from 50,218 transactions in Q4 2024. Data from DXBinteract shows villa sales were up by 43.1 per cent year-on-year to Dh41.3 billion from 8,369 deals, while apartment sales rose by 12.6 per cent to Dh62.3 billion from 32,884 transactions. Commercial sales were also up by 25.2 per cent to Dh3.6 billion from 1,212 deals. Rising property values in recent years were highlighted by a Q1 median price of Dh1,563 per sq ft, compared with the Q1 rates of Dh889 in 2021, Dh1,124 in 2022, Dh1,283 in 2023 and Dh1,497 last year. The rise in land deals underscores the shrinking size of the availability of land in the emirate, experts say. 'The reality is that plots for real estate development in Dubai are increasingly difficult to find, and this has led to land prices in the city soaring in recent years. Compared with COVID times, land prices have increased three or even four times in some areas, driven also by the exceptionally high demand we're witnessing today in off-plan sales. Obviously, off-plan sales are carried out by real estate development companies, which cannot exist without land to develop. Hence, there is fierce competition among these developers to acquire land, making it a key factor in driving land prices higher,' said Firas Al Msaddi, CEO of fäm Properties. 'The only scenario in which we will see land prices falling or stabilizing would be if the off-plan real estate market starts to decline. Any slowdown in off-plan prices would have an immediate impact on land prices in Dubai,' he added. Dubai's Q1 property sales over the last five years have now risen to the current level from Dh21 billion (9,800 transactions) in 2020 to Dh24.6 billion (11,600) in 2021, Dh54.6 billion (20,200) in 2022, Dh89 billion (31,100) in 2023 and Dh109.5 billion (37,000) last year. The top five performing areas of Dubai in terms of volume in Q1 were: • Jumeirah Village Circle: 3,605 transactions valued at Dh4.559 billion • Wadi Al Safa: 3,596 transactions valued Dh7.642 billion • Business Bay: 2,782 transactions valued at Dh7.265 billion • Dubai South: 2,676 transactions valued Dh8.745 billion • Dubai Marina: 2,583 transactions valued at Dh9.284 billion The most expensive individual property sold in Q1 was a luxury villa at Dubai Hills Estate which fetched Dh140 million. The most expensive apartment sold during the quarter went for Dh116 million at The Rings 1 at Jumeirah Second. With properties worth Dh1-2 million accounting for 31 per cent of sales (14,242), 26 per cent (11,899) were below Dh1 million, 19 per cent (8,567) between Dh2-3 million, 15 per cent (6,837) between Dh3-5 million, and 9 per cent (3,939) more than Dh5 million. Overall, first sales from developers significantly outnumbered re-sales in the secondary market - 65 per cent over 35 per cent in terms of volume and 61 per cent against 39 per cent in value. 'Once again we're seeing figures which emphatically underscore the remarkable resilience and strength of Dubai's real estate market, as the consistent growth of recent years continues,' said Al Msaddi. 'This sustained upward trend cements Dubai's position as a prime real estate investment hub, drawing increasing interest from global investors alongside strong demand from local and regional buyers.'
