Dubai’s real estate market demonstrated strong momentum in Q1 2025. From rising property values to increased transaction volumes and investor confidence, the first quarter has reaffirmed Dubai’s status as a premier global investment hub. Below is a comprehensive overview of the current market landscape and what it means for buyers and investors.
Market Performance: Transaction Growth at All-Time High
Total Transactions: Over 45,000 deals in Q1 2025, marking a 22% year-on-year increase
Transaction Value: AED 142.7 billion, up 30% from Q1 2024
Ready Sales: 20,034 transactions worth AED 87.5 billion, up 21% in volume and 34% in value
Off-Plan Sales: 25,440 deals worth AED 55.2 billion, a 24% increase year-on-year
(Source: Arabian Business, Property Finder)
Residential Sector: Price Appreciation and High Demand
Average Sale Price: AED 2.7 million
Villa Market: Sales volume up 65%, value up 56% to AED 53.4 billion
Apartments: 32,000+ transactions, up 14% year-on-year
Rental Trends: Apartment rents increased by 10%; villa rents rose 5.1%
(Sources: The National News, MAK Developers)
Premium neighborhoods such as Palm Jumeirah, Emirates Hills, and Dubai Marina continue to outperform, with luxury villa prices rising more than 20% in some areas.
Market Drivers: Population Growth and Investor Confidence
Dubai added nearly 90,000 new residents in the first quarter of 2025—an average of 1,000 people per day. This surge in population has intensified demand for both rentals and homeownership. Notably, off-plan sales accounted for nearly 60% of all transactions, reflecting high investor confidence and market liquidity.
(Source: The National News, LinkedIn)
Supply Outlook and New Launches
Q1 Deliveries: Over 7,800 new residential units
2025 Forecast: More than 81,000 new units expected by year-end
Luxury Focus: Continued demand for upscale villas and branded residences
(Source: Provident Estate, Business Insider)
Despite increased construction, demand continues to outstrip supply—particularly in the villa segment.
Why Dubai Remains a Smart Investment
- 0% property tax
- Rental yields averaging 6–10%
- Strategic global location
- Stable economy with population growth
- High liquidity and strong resale market
Dubai real estate continues to deliver value—whether you’re seeking capital appreciation, stable cash flow, or long-term security.
Let’s Talk Strategy
Thinking about investing in Dubai real estate?
AE Realty Group offers exclusive access to top developers, pre-launch deals, and personalized advice—right from Toronto.
Book a free no obligation consultation with one of our Dubai property specialists.
