Dubai real estate market has seen a 23 per cent increase in transaction volume
Dubai’s residential real estate market kicked off 2025 with significant momentum, fueled by a growing population and heightened interest from investors across the globe.
According to the latest Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter saw an impressive 23% year-on-year increase in transaction volumes, highlighting Dubai’s ability to strike the right balance between investment returns and an exceptional quality of life.
Rachael Kennerley, Director – Research at Savills, noted:
“Off-plan sales were the backbone of transaction activity in Q1 2025, making up 69% of all deals. The residential sector saw a notable supply boost, with over 30,000 units launched during the quarter—predominantly apartments.”
🚀 Surge in New Launches and Off-Plan Sales
This marks more than double the number of units launched during the same period last year, as developers responded to strong buyer interest and market demand. The ready property market, which includes completed and handed-over homes, comprised the remaining 31% of transactions.
Within this ready market, apartments accounted for 81% of the deals, further showcasing their dominance in Dubai’s urban housing stock.
🏙️ Apartments Lead, But Villas and Townhouses Make a Comeback
Across the entire residential segment, apartments made up 76% of all transactions in Q1 2025. However, the villa and townhouse market showed a meaningful uptick, with their share of transactions rising from 18% in Q4 2024 to 24% in the first quarter of 2025.
Top-performing areas included Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons—micro-markets positioned along the Al Khail corridor. These locations accounted for 55% of all transaction volumes and 56% of new residential unit launches during the quarter.
According to Savills, the trend is largely driven by land scarcity and affordability issues in the city’s core zones, prompting a shift toward more peripheral locations.
🏡 Prime Residential Segment Stays Resilient
Dubai’s prime residential market remains robust, strengthened by the city’s ongoing popularity among high-net-worth individuals (HNWIs). The demand is powered by Dubai’s strong value proposition: high quality of life, a low-tax environment, simplified business setup, and the Golden Visa initiative.
In Q1 2025, over 1,300 units priced above AED 10 million ($2.72 million) were sold, reflecting a 31% increase compared to the same period in 2024.
Interestingly, villas led the prime segment, making up 73% of all high-end transactions. This represented a 52% year-on-year increase, along with a 4% quarter-on-quarter rise.
Andrew Cummings, Head of Residential Agency at Savills, commented:
“Demand for luxury homes in Dubai hasn’t just persisted—it’s grown stronger. Amid geopolitical tensions, trade wars, and tax unpredictability, the global elite continue to turn to Dubai. Developers are responding, but supply remains tight, especially for spacious villas in desirable areas.”
🔮 Future Outlook: Optimism with a Note of Caution
Looking forward, the forecast for Dubai’s residential property market stays optimistic. Savills expects that Dubai’s political stability, business-friendly ecosystem, and regulatory advantages will continue to attract both residents and investors—especially as global macroeconomic and geopolitical conditions remain volatile.
Nonetheless, Savills advises a balanced approach, noting that while development activity is substantial, aligning supply with sustained demand will be crucial for maintaining long-term market health.
📝 Final Thoughts
Dubai’s residential property sector in Q1 2025 reflects a city poised for continued growth. With strategic developments, expanding suburban markets, and high global investor confidence, the emirate is setting a strong tone for the year ahead.
