Apartment prices rose by 1.4 percent monthly, recording an annual growth of 23.1 percent last month.
Dubai Real Estate Market Continues Strong Growth into 2025
Following an exceptional year in 2024, Dubai’s real estate sector has sustained its upward trajectory, with property prices and transaction values witnessing substantial growth. As 2025 commenced, the ValuStrat Price Index (VPI) climbed to 204.2 points, reflecting a 1.7 percent monthly increase and a significant 27 percent surge compared to the previous year. Villa values reached 264.2 points, while apartment prices rose to 165 points, with all figures benchmarked to a base of 100 points as of January 2021.
The growth rate for villa capital values eased slightly to 2 percent monthly, though annual gains remained strong at 31.2 percent. Notably, villas in Jumeirah Islands, Palm Jumeirah, Emirates Hills, and Dubai Hills Estate demonstrated the highest annual appreciation.
Apartment prices saw a 1.4 percent monthly increase and recorded an impressive 23.1 percent annual growth. The strongest capital gains over the year were observed in The Greens, Palm Jumeirah, The Views, Town Square, and Dubailand Residence Complex. Furthermore, apartment prices in Palm Jumeirah, The Greens, and Jumeirah Beach Residence have now exceeded their 2014 peak valuations.
Surge in Off-Plan Registrations
Dubai’s off-plan property market has experienced a surge in interest, with demand increasing significantly in recent years. Last month, Oqood (contract) registrations for off-plan properties declined by 13.5 percent on a monthly basis but showed an impressive 37.9 percent increase compared to the same period last year.
Off-plan transactions made up 69.1 percent of total home sales in January. Although ready secondary-home sales dipped by 5.1 percent on a monthly basis, they were still 7 percent higher year-on-year.
Top-performing off-plan locations last month included Dubailand Residence Complex, Emaar South, Damac Hills 2, Jumeirah Village Circle, and Business Bay. Among them, Dubailand Residence Complex set a new record for the highest number of off-plan property transactions within a single month. Meanwhile, the most sought-after locations for ready property transactions were Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai, and Jumeirah Lake Towers.
