The market records Dh35 billion in sales across 13,019 transactions in January, posting 5% month-over-month increase from December 2024
Dubai’s Real Estate Market Starts 2025 with Strong Momentum, Signaling Investor Confidence
Dubai’s property sector has entered 2025 on a high note, demonstrating remarkable strength and reflecting the city’s enduring appeal among investors, according to real estate industry professionals.
As the new year unfolds, property transactions in January alone amounted to an impressive Dh35 billion, spread across 13,019 deals—marking a 5.0% increase from December 2024. This steady upward trend highlights the strong demand for Dubai’s dynamic real estate offerings.
A key driver of this momentum is the surge in off-plan property sales, which made up 56% of total transactions last month. The continued preference for newly launched projects underscores the confidence buyers have in Dubai’s evolving real estate landscape. Renowned developers such as Emaar, Sobha, Damac, and Danube are leading this sector, capitalizing on the growing demand for innovative, contemporary housing solutions.
Despite robust sales activity, a slight market adjustment was noted in January, with average price per square foot decreasing by 0.57% month-over-month to Dh1,484. This follows a peak in December 2024 and is seen as a natural stabilization rather than a market decline. The average sale prices for various property types were Dh1.75 million for apartments, Dh2.67 million for townhouses, and Dh7.18 million for villas, offering buyers a wide spectrum of options.
Leading brokerage firm Betterhomes reported a 56% rise in buyer inquiries from the previous month, reflecting sustained demand across the sector. A large portion of transactions were financed through mortgages, highlighting the role of both investors and end-users in shaping market trends.
Popular Communities Driving Market Activity
Among apartment buyers, prime locations such as Jumeirah Lakes Towers (JLT), Business Bay, and Dubai Marina remained top choices, while villa buyers favored Dubailand, Arabian Ranches, and Damac Hills 2. This pattern reaffirms the appeal of well-established communities that provide strong investment potential along with premium lifestyle amenities.
Looking ahead, Dubai’s property sector is poised for continued growth. Betterhomes forecasts a record-breaking 72,365 residential unit completions in 2025—a staggering 171% increase from the previous year. This surge reflects the emirate’s ongoing urban expansion and developers’ commitment to meeting the rising demand for quality housing.
The off-plan market also experienced significant growth in 2024, with more than 470 new projects launched—averaging over one project per day. Developers are now prioritizing sustainable and affordable housing to accommodate the city’s diverse expatriate population while aligning with global sustainability goals. In 2024, apartments accounted for 77% of new completions, followed by townhouses at 17% and villas at 6.0%. This shift towards high-rise living is expected to continue as urbanization accelerates.
Key Investment Hotspots and Market Stability
Areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay remain focal points for both investors and homebuyers. The first quarter of 2025 is set to witness notable project handovers, particularly in Sobha Hartland, Arjan, and JVC, further fueling market activity.
With an estimated 163,000 new housing units expected to be delivered between 2025 and 2026, analysts predict stable price trends across the market. While minor price fluctuations may occur, Dubai’s strong economic fundamentals and strategic investments are expected to maintain investor confidence.
A senior analyst at Condor Developers commented, “While some price variations are possible, the market fundamentals remain robust. With sustained economic growth and ongoing infrastructure developments, investor confidence is likely to stay strong.”
He further noted, “The influx of new residential units will not only meet growing demand but also diversify the market, catering to buyers across all segments—from affordable housing to luxury villas.”
Investor sentiment remains overwhelmingly positive, buoyed by competitive financing options and favorable market conditions. The fact that mortgage financing played a major role in January’s transactions highlights the strong participation of both local and international buyers.
Daniel Rogers, a leading property consultant, emphasized, “Dubai’s real estate market continues to attract global investors due to its strategic location, strong economic resilience, and investor-friendly regulations.”
As the year progresses, Dubai’s real estate sector remains well-positioned for sustained growth, reinforcing its reputation as one of the world’s most attractive property investment destinations.
