Engel & Völkers Middle East Reports Strong Double-Digit Growth Across Residential and Commercial Segments, Signalling Resilient Investor Confidence
Dubai’s Real Estate Sector Surges in April with Major Growth Across Residential and Commercial Segments
Dubai, UAE – Dubai’s property market delivered remarkable performance in April, recording 17,447 residential transactions—a 61% rise compared to the same period last year. Commercial rental activity also experienced a notable boom, with average office rents jumping 22.4% and warehouse rates rising an impressive 40.8%. These statistics, highlighted in Engel & Völkers Middle East’s April 2025 market report, emphasize Dubai’s ongoing appeal as a prime destination for international investment, even amidst global financial shifts and investor caution.
Residential property transactions not only surpassed April 2024 levels but also went over the Q1 2025 monthly average by more than 20%, signaling robust buyer interest. The depreciation of the US dollar enhanced affordability for international purchasers, intensifying demand across off-plan and resale markets. Foreign investors continue to be drawn to Dubai for its lifestyle offerings, strong yields, and attractive value when compared to other international hubs.
On the commercial side, demand followed a similar upward trend, supported by a growing population and a more diversified economic base. Business hubs such as Business Bay and Jumeirah Lake Towers experienced strong absorption rates with minimal new inventory, pushing average office lease rates up over 22% year-on-year. Simultaneously, the logistics and industrial real estate market saw warehouse rents increase nearly 41%, driven by escalating requirements from the e-commerce, manufacturing, and trade sectors for strategically located, high-quality spaces.
“Dubai stands out as a global real estate leader,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Both buyers and investors are drawn by the city’s unique mix of lifestyle quality, solid returns, and regulatory stability. This continued performance affirms Dubai’s growing appeal among global investors, end-users, and developers seeking reliable growth and a secure environment. The current trend reflects strong demand foundations and rising acknowledgment of Dubai as a stable, long-term investment hub.”
Demand in the residential market was widespread, with interest seen in both established and newer communities. Jumeirah Village Circle remained the most active area in terms of transactions, attracting both homeowners and investors due to its relative affordability. DAMAC Islands also showed strong performance, catering to rising interest in value-driven waterfront properties. Business Bay and Dubai Marina continued to perform well in the apartment segment, thanks to their vibrant lifestyles and steady investment interest.
Although prices are generally still increasing, Engel & Völkers has observed initial indicators of price moderation in mature neighborhoods—a possible signal of a more balanced and sustainable market cycle. Investor-friendly regulations, clear governance, and strong economic fundamentals remain key drivers of Dubai’s real estate expansion.
In commercial real estate, transaction hotspots included Business Bay, Jumeirah Lake Towers, Motor City, and Barsha Heights, all known for offering strategic benefits and robust business environments. With limited Grade A office availability and a steady inflow of firms setting up regional headquarters, office rent growth is expected to persist into the year’s second half. Meanwhile, warehouse operators are actively seeking proximity to transport corridors, free zones, and last-mile logistics centers, further pushing industrial rent rates in major clusters.
As Dubai reinforces its role as a global bridge between East and West and continues to draw innovation and foreign capital, Engel & Völkers Middle East anticipates this growth momentum will carry on through the rest of 2025. Strong fundamentals, resilient investor sentiment, and soaring international interest point toward another record-setting year for the city’s real estate market.
About Engel & Völkers:
Engel & Völkers is a globally recognized brand specializing in the brokerage of premium homes, commercial properties, yachts, and aircraft. For more than 45 years, the company has focused on fulfilling the needs of both private and institutional clients, continuously developing a wide array of real estate-related services. The firm employs over 16,500 professionals across five continents in more than 35 countries. The company emphasizes consistent training through its in-house Academy and upholds high standards of service delivery. Engel & Völkers also invests in the development of digital platforms and tools, maintaining efficiency and setting benchmarks in property technology.
About Engel & Völkers Middle East:
Launched in 2014, Engel & Völkers Middle East operates from Dubai, United Arab Emirates, with a team of over 200 agents who specialize in luxury residential and commercial real estate. The firm recently introduced a separate unit for commercial properties (Engel & Völkers Commercial Middle East), providing access to high-value opportunities including industrial assets and office spaces. Their Private Office division caters to high-net-worth individuals, offering access to elite properties globally. Whether buying, selling, or leasing, Engel & Völkers Middle East is a reliable partner for your real estate journey.
