While apartments remained a significant segment, the villa market emerged as a standout performer.
Dubai Real Estate Shows Robust Growth in Q1 2025
Dubai’s property sector continues its upward trajectory, showcasing strong growth and resilience during the first quarter of 2025.
As per the Q1 market update from Betterhomes, the total number of property sales jumped by 23% compared to the same period last year, while the total transaction value climbed by 29%, reaching AED 114 billion.
Apartments maintained a significant presence in the market, but it was the villa segment that stood out, posting a 65% rise in transactions and a 56% increase in value. Off-plan developments remained the main force behind activity, making up 59% of total transactions. However, there’s a rising interest in luxury properties that are fully completed and ready to move into.
These findings are just a glimpse into the detailed Q1 2025 Dubai Real Estate Market Report by Betterhomes.
Meanwhile, insights from Property Finder also indicate a positive outlook for the UAE real estate sector overall, with both Dubai and Abu Dhabi seeing a powerful start to the year, though the growth drivers differ.
Dubai Hits Record Highs
Dubai reached unprecedented levels in both transaction numbers and value, making Q1 2025 its strongest first quarter in more than 10 years. The emirate recorded 45,474 transactions worth AED 142.7 billion, translating into a 22% year-on-year increase in volume and a 30% boost in value compared to Q1 2024. This surge is largely attributed to a boom in both off-plan and secondary market deals.
Off-plan Sales
Off-plan properties represented 56% of all transactions, with the total number reaching 25,440—marking a 24% increase compared to the same quarter last year. The value of these deals rose from AED 44.5 billion in Q1 2024 to AED 55.2 billion in Q1 2025. In parallel, the ready property segment also performed remarkably well, with 20,034 transactions totaling AED 87.5 billion—a 21% rise in volume and a significant 34% growth in value. These are the highest-ever figures achieved in a single quarter for this segment.
The continuous rise in these numbers highlights consistent demand from both end-users and investors, possibly driven by a shift from renting to buying, as increased rental prices push residents to pursue ownership.
Abu Dhabi’s Market Momentum
In the capital, there has been a notable uptick in the completed property segment. Abu Dhabi posted a 9% increase in transaction volume and an impressive 75% rise in value, influenced by major commercial transactions and a growing preference for move-in-ready homes. Residential sales of ready properties increased by 5% in volume and 33% in value, showing a clear consumer tilt toward immediate occupancy.
Key Market Highlights
Off-plan Segment – Dubai
Dubai maintained its reputation as a global leader in real estate, with Q1 2025 witnessing a sharp increase in both the number and value of transactions. The 45,474 deals recorded represent a 22% growth over the same period last year, with a 30% boost in value, totaling AED 142.7 billion—the highest on record for any Q1.
The off-plan market experienced its strongest performance in over a decade, contributing 56% of the total transactions. The total number of off-plan sales hit 25,440, up from 20,557 in Q1 2024, showing a 24% growth. This increase reflects growing confidence among medium and long-term investors.
In terms of value, the off-plan segment reached AED 55.2 billion in Q1 2025, up 24% from AED 44.5 billion a year ago. This made up 39% of the total transaction value, reinforcing the continued attractiveness of Dubai’s upcoming property developments.
Off-plan Segment – Abu Dhabi
Abu Dhabi’s real estate market registered around 2,496 transactions in Q1 2025, totaling AED 9.6 billion. Within that, 1,332 off-plan sales were recorded, worth approximately AED 4.9 billion.
Ready Property Market – Dubai
Dubai set a new quarterly benchmark, exceeding the average quarterly figures of 2024. The number of ready property transactions surpassed the 2024 average by 12%, and value by 19%, reflecting continued strength in the market going into 2025.
There were about 20,034 completed property transactions, marking a 21% rise in volume and totaling AED 87.5 billion—a 34% increase in value compared to AED 65.3 billion during Q1 2024. Ready properties accounted for 44% of total sales volume in Q1 2025.
Ready Property Market – Abu Dhabi
Abu Dhabi recorded 1,164 transactions for completed properties during Q1 2025, making up 47% of total market activity—up from 1,066 transactions a year prior. These deals represented 49% of total transaction value, indicating a 9% increase in volume and a sharp 75% spike in value year-on-year.
Of the ready property market, residential sales comprised 88% of total transaction volume and 60% of total value. Compared to Q1 2024, there was a 5% rise in residential transaction volume and a 33% gain in value, showing continued demand for ready-to-occupy homes.
