Dubai Real Estate Market’s First Price Drop
Dubai Real Estate Prices Experience First Decline Since 2022, Indicating Market Stabilisation
Dubai’s real estate sector witnessed a slight dip in property prices, declining by 0.57% in January 2025—the first drop since the summer of 2022—signaling a shift towards market stabilisation, as per the latest industry report.
Despite this decline, January 2025 recorded the highest-ever number of transactions for the month, with 14,413 property sales. However, average prices dropped to AED 1,484 per sq ft. Additionally, the report highlighted a 4.6% decrease in sales volume compared to December 2024.
Off-plan project launches remained strong, with 53 new developments introduced by 37 real estate developers, collectively adding 12,400 residential units to the market. Mortgage transactions also saw an increase of 6.8% on a monthly basis, reaching a total of 4,134 loans. Loan-to-value (LTV) ratios remained stable despite the UAE Central Bank’s continued enforcement of stricter lending regulations.
According to the report, median property prices stood at AED 1.35 million for apartments, AED 2,61,000 for townhouses, and AED 6,915,888 for villas. The off-plan segment remained dominant, accounting for 52% of January’s sales, with 7,555 transactions recorded. However, this figure represented a 17.7% decline compared to December 2024. Meanwhile, title deed transactions demonstrated a strong upward trend, increasing by 15.7% month-over-month and making up 47.6% of total sales.
Among developers, Emaar Properties led the off-plan market with a 16.5% share, followed by Damac Properties at 15.8% and Danube Properties securing 5.3%. The priciest recorded transaction for the month was a luxurious villa in Emirates Hills, selling for AED 425 million, whereas the lowest-priced deal was a studio apartment in Dubai Production City, which changed hands for AED 175,000.
