Dubai Property Market Surges in Q1 2025 as Off-Plan Sales Dominate and Premium Districts Lead Price Growth
DUBAI, UAE, April 23, 2025 – Dubai’s real estate sector witnessed remarkable growth during the first quarter of 2025, with transaction volumes and values reaching record levels, according to the newly released Q1 2025 Residential Market Report by Betterhomes.
Residential transactions climbed by 23% year-over-year, surpassing 42,000 deals, while the total sales value soared by 29% to nearly AED 114 billion. Off-plan property led the market, comprising 59% of all residential transactions this quarter—a clear indicator of buyer enthusiasm for upcoming developments. The surge was supported by continued demand from end-users and strong investor interest, making Q1 2025 one of the best-performing quarters in Dubai’s property history.
The report also emphasizes that upscale districts are at the forefront of this expansion. Areas like Dubai Hills Estate, Palm Jumeirah, and Jumeirah Golf Estates saw particularly strong performance, attracting a large volume of high-value deals. Villas showed the most pronounced growth, driven by increased interest in larger homes and multi-bedroom units from both families and real estate investors seeking lifestyle upgrades and luxury living.
Dubai continues to attract both domestic and international buyers, thanks to its tax-free investment environment, attractive rental returns, and the wide range of available residential inventory.
Home prices reached new peaks in Q1, with the average sale price for residential properties rising to AED 1,535 per square foot—up 16% from Q1 2024. The price increase stems largely from constrained supply, particularly in villa segments and larger family homes, and heightened market activity. Despite escalating prices, yields remain appealing to investors. Rental rates have also experienced an upswing, further boosting the income potential for landlords and property holders.
On the supply front, the pace of development is accelerating. In the first quarter, 7,848 residential units were completed. Additionally, nearly 97,000 units are projected for completion by 2026. While this future inventory is expected to expand buyer and investor choices in the coming years, availability in key areas is still limited—sustaining demand and upward pressure on prices.
“Q1 2025 has delivered extraordinary results for Dubai’s property market, underscoring its appeal to both investors and end-users,” stated Louis Harding, CEO of Betterhomes. “We’re seeing strong growth across off-plan and established neighborhoods alike, reflecting both investor trust and resident confidence in the market. With new supply, sustained demand, and ongoing economic momentum, we anticipate this trend will continue throughout 2025. Dubai remains a premier global real estate destination for long-term returns.”
The Betterhomes Q1 2025 Residential Market Report provides comprehensive analysis of buyer behavior, community performance, and market trends, offering valuable guidance for those looking to invest or purchase property in Dubai.
