Dubai Property Market Sees Robust Growth as Off-Plan Property Dominates; Premium Neighborhoods Lead Price Rally
United Arab Emirates, April 27, 2025 — Dubai’s real estate market continued its upward trajectory in the first quarter of 2025, achieving record-high sales volumes and values, according to the latest Betterhomes Q1 2025 Dubai Residential Real Estate Market Report.
Residential property transactions in Dubai surged by 23% year-on-year in Q1 2025, totaling over 42,000 deals. The total sales value climbed by 29% to reach approximately AED 114 billion. Off-plan properties represented 59% of all transactions during the quarter, highlighting the strong and continued attraction buyers have toward new developments. This impressive performance reflects steady end-user demand and growing investor confidence, making Q1 2025 one of the strongest periods on record for the Dubai property market.
According to a Betterhomes report, premium communities continue to lead the market’s growth. Areas like Dubai Hills Estate, Palm Jumeirah, and Jumeirah Golf Estates stood out as the top-performing locations in Q1, driven by high-value transactions and concentrated buyer demand. The villa market, in particular, experienced remarkable growth in transaction volume, showcasing increased interest from families and investors seeking larger, luxurious homes—especially multi-bedroom units designed for elevated lifestyles and comfort.
Both domestic and international buyers remained active throughout the quarter, drawn to Dubai’s tax-free environment, impressive rental yields, and a wide range of high-quality properties available across the market’s various segments.
Residential property prices hit new records in Q1. The average sales price reached AED 1,535 per square foot, reflecting a 16% increase compared to Q1 2024. This growth has been fueled by limited supply, especially for villas and three-plus-bedroom homes, combined with competitive market dynamics. Despite the higher property prices, rental yields remain strong. Rising rents have further enhanced the appeal for investors looking for solid income potential.
On the development side, construction activity is gaining momentum. A total of 7,848 residential units were completed during the first quarter of 2025, and nearly 97,000 additional units are anticipated to be delivered by 2026. Although the upcoming supply is expected to broaden choices for buyers and investors over the medium term, inventory remains tight in major communities, maintaining upward pressure on prices and demand.
“Q1 2025 has been an outstanding quarter for Dubai’s real estate sector, reaffirming the market’s robust performance and strong appeal to both buyers and investors,” said Louis Harding, Chief Executive Officer of Betterhomes. “The notable increase in transaction volumes and property values across both new developments and established neighborhoods illustrates sustained confidence from both local end-users and international investors. We expect this momentum to continue through 2025, driven by ongoing economic expansion and the launch of new projects. Dubai continues to stand out as one of the most attractive property destinations globally for investors and homebuyers seeking long-term value.”
For property buyers and investors, the Betterhomes Q1 2025 Dubai Residential Real Estate Market Report provides comprehensive insights into community-level trends, buyer behavior, and the shifting dynamics of investment-grade real estate across the emirate.
