Experts predict that the Dubai real estate market will continue to develop steadily until 2025, as residential and commercial buildings demonstrate high growth potential throughout the first quarter of each year. The sales of residential properties in Dubai rose 22.4%, while total sales values increased by 29.6% in annual terms, according to Engel & Völkers Middle East. The total transaction values across commercial real estate segments increased by 18.2% annually, while these properties experienced a 29.5% sales boost during the same period.
Residential market demand in Dubai continued to rise, despite the usual seasonal decline in Q4. Off-plan housing deals increased by 23.9%, and secondary property sales grew by 20.3%, as the market continued to show steady interest in both affordable housing and luxury real estate.
Key Highlights
| Category | Key Highlights |
| Residential Sales | Up 22.4% YoY; Total value up 29.6% |
| Commercial Sales | Up 18.2% YoY; Total value up 29.5% |
| Apartments | 76% of residential transactions; JVC leads |
| Villas | Transactions up 80.6%; Value up 55.1% |
| Luxury Sales | Dh10M+ transactions up 29%; Palm Jumeirah dominates |
| Rental Market | Strong tenant demand; key areas up 20-33% in rents |
| Mortgage Transactions | 57% of sales; mortgage deals up 21% YoY |
| Off-plan Market | 59% of all transactions; prime sector shifts to secondary |
| Office Sales | Up 40% YoY; Business Bay, JLT, and Motor City popular |
| Retail Sales | Up 6% YoY; Arjan, JVC active in retail deals |
| Infrastructure Growth | Major projects like Etihad Rail and Dubai Loop drive future demand. |
Apartments Dominate Transactions, JVC Leads the Pack
Apartments accounted for 76% of all residential properties sold in the market. JVC maintained its position as the top area for off-plan and resale apartment sales, as investors appreciated its affordability alongside attractive rental yields and convenient transportation options.
The secondary market in areas spanning from Business Bay through Dubai Marina and Downtown Dubai remains active because investors, along with end-users, prefer these prime neighbourhoods due to their prime amenities and the continuous rental market.
Villas Surge as Buyers Seek Larger Homes
The villa market demonstrated the most remarkable growth, with annual increases of 80.6%. Most property off-plan sales during the period originated from The Valley, Emaar South, and Damac Islands master-planned developments in emerging communities. The villa market experienced a 55.1% increase in transaction values, as families sought accessible, price-conscious homes in Dubai’s developing outer areas.
BetterHomes data confirms a rising trend, with villa sales increasing by 65% throughout the year, reaching 10,185 individual deals. The total value of villa sales reached AED 53.4 billion. It represents a 56% increase from the previous statistics. Prices for villas reached their highest appreciation level since they rose by 92% during the period.
Dubai’s Luxury Market Maintains Momentum
Properties valued at more than Dh10 million demonstrated strong growth in Q1 2024 sales, which increased by 29% compared to the previous quarter’s figures and delivered an impressive surge of 185% from Q1 2022. The development areas of Palm Jumeirah and Palm Jebel Ali contributed to 31% of high-end waterfront villa property sales that exceeded Dh10 million.
Two significant property sales involving the Marble Palace in Emirates Hills, at Dh425 million, and a Dh115 million villa in the Palm Jumeirah’s EOME community were completed by Engel & Völkers Private Office Advisor Fadi Alsalem. The real estate brokerage firm Betterhomes reported a 44% annual growth in prime property deals exceeding AED 15 million, combined with an impressive 77% increase in secondary market sales at this level.
The Upward Trend in Market Demand
The number of high-net-worth individuals (HNWIS) visiting the UAE exceeded that of all other nations in 2023 and 2024. The number of millionaires has reached 81,000, along with 237 centi-millionaires and 20 billionaires in Dubai. Experts anticipate a continued increase, as affluent individuals are drawn to Dubai’s stable and high-performing market.
Rental Market Sees Sustained Demand
The growing population of Dubai led the rental market to accommodate over 51,000 new residents during Q1 of 2023. Property rental rates are adjusting to levels that are no longer fluctuating wildly; however, various districts have experienced significant price increases. The luxury apartment sector in Bluewaters experienced a 14.1% yearly rent increase.
In comparison, Dubai Hills Estate recorded 33.8% growth in villa and townhouse prices and a 20.6% increase in Arabian Ranches properties. Betterhomes recorded a 36% annual growth in tenant leads, as families preferred improved housing options. Leasing interests in townhouses increased by 199% from last year to this year, followed by a 39% boost in apartment leasing requests.
Rupert Simmonds from Betterhomes noted that renters plan to stay in Dubai for an extended period, so multi-year rental agreements are on the rise. Tenant lock-in capabilities enable better financial preparation for them and help landlords maintain stable occupancy by minimising frequent property vacancies.
Shifts in Buyer Profiles and Financing Trends
The number of townhouse buyer leads increased by 64% between the current quarter and the previous quarter. The end-user segment of homebuyers grew to represent 50% of the market during this period, whereas previous data had shown only 28% of end-users. Betterhomes sales transactions mostly consisted of mortgage-backed purchases, totalling 57%.
Jeffrey De Souza from Lomond’s mortgage division emphasised that property purchase affordability had reached an all-time low compared to apartment rentals during this market cycle. Potential buyers currently choose to convert their regular mortgage payments into lasting property equity, as both mortgage rates remain steady and house prices continue to grow. High returns on investment await buyers who pursue property ownership in Dubai.
Off-Plan Market Dominates But Prime Preferences Shift
Transactions involving properties built before completion accounted for 59% of all real estate deals, totalling 24,942 agreements, as the off-plan sector showed a 25% increase from the previous year. The prime property market experienced substantial changes, with off-plan deals decreasing by 30%, while secondary market prime sales rose by 77%, as investors favoured finished luxury properties. According to Betterhomes, the market-wide average selling price increased by 28%.
The Real Estate Sector’s Upward Trend
The commercial property sector in Dubai maintained an excellent performance level. Office sales transactions rose by 40%, with the average price per square foot climbing 15% to Dh1,676. Business Bay, along with Jumeirah Lake Towers (JLT), maintained their status as key areas for Grade A office real estate deals, registering 315 and 217 sales during the period. The Capital One project in Motor City generated substantial off-plan interest, making the area a new desirable market for office investments.
Real estate sales within retail properties increased by 6% since the previous year, particularly in thriving communities such as Business Bay, Arjan, and JVC. Commercial real estate leasing activity showed 17.6% growth on a quarter-to-quarter basis. Office rental rates increased by 23% annually to reach Dh112 per square foot, while retail prices remained constant at Dh240 per square foot. It indicates an upward shift in retail values due to growing demand for Grade A space.
Real estate in Dubai continues to thrive, regardless of global developments in the financial markets, says Daniel Hadi, who oversees Engel & Völkers Middle East. The city receives new demand from three primary factors, including strategic policy initiatives, infrastructure spending, and future-forward positioning as a global business and living hub.
Infrastructure and Strategic Developments to Boost Future Growth
Infrastructure projects within Dubai help attract more investors to the city through strategic enhancements. One of the key development plans involves accelerating Etihad Rail projects, implementing the Dubai Loop system, and enhancing road development in business district areas. The retail and consumer sectors of Dubai are expected to thrive strongly in the future based on increasing commercial confidence demonstrated by announcements such as the Dh5 billion Mall of the Emirates redevelopment project. Property Monitor projections indicate that 7,848 new residential units will be introduced to the market during Q1 2025, and the total delivery count is expected to reach nearly 97,000 units by the end of 2026.
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Conclusion
The real estate market within Dubai began 2025 by revealing significant expansion across residential properties and commercial properties, as well as in the luxury segment. The villa market’s expansion, along with the sale of luxurious properties, enables Dubai to retain its status as an international top choice for living and investment among global investors.
The development depends on the forward movement of infrastructure projects, alongside maintained mortgage agreements and progressive urban development initiatives. The real estate market in Dubai is expected to continue its growth trajectory, driven by rising investor interest, success in off-plan sales, and active rental market dynamics. People across all investor types, including homeowners and businesses, now recognise Dubai as a sustained investment opportunity, beyond its dynamic city dynamics.
