The market registers approximately 14,238 transactions, marking a significant 23 per cent increase compared to January 2024
Dubai’s Real Estate Market Surges in January 2025, Off-Plan Segment Shows Strong Momentum
Dubai’s real estate sector witnessed substantial growth in January 2025, with the off-plan market leading the way, as per the latest insights from Property Finder.
The market recorded around 14,238 transactions, reflecting a 23% increase from January 2024. The total transaction value surged to Dh44.4 billion, marking a 24% year-on-year rise.
Property buyers demonstrated distinct preferences for various housing types. Among those seeking ownership or investment opportunities, 31% opted for one-bedroom units, while 37% favored two-bedroom apartments. Studio apartments remained appealing to 15% of buyers. For townhouses and villas, 37% showed interest in three-bedroom homes, whereas 50% preferred properties with four or more bedrooms.
The most sought-after locations for apartment buyers included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah. Meanwhile, villa buyers gravitated towards Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan, and Damac Hills 2.
Rental Trends Reflect Market Preferences
Market insights also revealed evolving rental trends. Approximately 59% of tenants searched for furnished units, whereas 39% preferred unfurnished properties. In the villa segment, 52% of renters sought furnished homes, compared to 48% looking for unfurnished options. Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira emerged as top choices for apartment rentals, while Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Al Furjan were favored for villa rentals.
Existing Market Sees Major Growth
The existing property market exhibited notable gains, recording 6,918 transactions, a 32% increase from 5,185 transactions in January 2024. The total value of these transactions saw a 41% rise, reflecting strong investor confidence. Among standout locations, Palm Jebel Ali secured Dh2.1 billion in transactions from 95 deals, while Al Yelayiss 1 experienced an impressive surge to Dh1.7 billion, a sharp rise from Dh102 million the previous year.
In contrast, the off-plan segment recorded a 1.3% dip in transaction value, reaching Dh15.1 billion, slightly below Dh15.3 billion in January 2024. This marks the first decline in off-plan transaction value in three years. However, off-plan sales transactions increased by approximately 15%, making up 52% of total property transactions in January 2025.
Market Stability and Future Growth
Cherif Sleiman, Chief Revenue Officer at Property Finder, highlighted the sector’s continued strength, emphasizing that recent policies, such as the Dubai Land Department’s expansion of freehold ownership, are unlocking new avenues for investors and homebuyers.
He also noted that the Central Bank of the UAE’s focus on responsible lending is creating a more stable financial climate, supporting long-term market sustainability. These initiatives align with the Dubai Real Estate Sector Strategy 2033, signaling an evolution in the industry.
Positive Outlook for 2025
Industry experts, including ValuStrat, predict that Dubai’s residential market will maintain an upward trend in 2025, though at a more moderate pace. With economic growth, rising demand, and investor confidence, capital values are anticipated to rise between 5-10% over the year.
Supporting this outlook, Engel & Völkers Middle East reported that off-plan sales accounted for 63% of all property transactions in 2024, up from 54% in 2023. This trend suggests a growing preference for new developments, driven by competitive pricing and attractive payment plans. Additionally, total residential sales surged by 40.3%, reaching 170,992 units in 2024, reaffirming strong investor trust in Dubai’s real estate sector.
Luxury Market and Emerging Developments
The luxury segment remains highly attractive, with Palm Jumeirah, Downtown Dubai, and Dubai Marina drawing high-net-worth investors. Newly emerging projects like Palm Jebel Ali and The Oasis are also gaining traction, catering to buyers seeking exclusivity and long-term capital appreciation.
Daniel Hadi, CEO of Engel & Völkers Middle East, emphasized the dominance of off-plan sales, stating that investors are increasingly looking for properties with long-term value potential. He also highlighted government-led initiatives, such as long-term visas and free zone expansions, as key factors enhancing Dubai’s reputation as a leading global real estate investment hub.
