Dubai’s real estate market continued its upward trend in the first quarter of 2025, marking its strongest first quarter in a decade. Transactions reached record highs, cementing the emirate’s reputation as a global investment magnet. However, behind the loud headlines lies a complex picture of disparate data and nuanced trends. This in-depth analysis aims to untangle this data to reveal the true drivers of growth – from the battle between ‘under construction’ and completed homes to the performance of individual segments such as villas and apartments.
Untangling the data: establishing a clear picture
The Dubai market analysis in Q1 2025 faces the challenge of various data from different sources. One report puts total transactions at AED 193 billion , while another cites AED 142.7 billion and a third AED 114 billion. These differences likely stem from different methodologies – some include only sales, while others cover mortgages, donations and commercial property. Despite the variations, all sources agree on the key point: the market has seen unprecedented annual value growth, ranging between 16% and 30%. This is the undeniable trend that shows the extraordinary strength of the market.
Battle of the Titans: Dynamics “under construction” vs. ready properties
The Dubai market continues to be dominated by the off-plan segment, which accounted for between 56% and 59% of all transactions during the quarter. This reflects strong long-term investor confidence in the city’s future development and the attractiveness of new projects. Interestingly, while the volume of ‘under construction’ transactions increased by around 25% year-on-year, their value increased by over 31% , indicating a trend towards more expensive and luxury projects in this segment.
At the same time, the ready properties market achieved its own record performance. The value of ready property transactions reached 87.5 billion dirhams from over 20,000 transactions, representing a staggering 34% annual growth in value. This phenomenon is attributed to several factors. For one, the growing trend of tenants shifting to home ownership due to rising rents is driving demand. On the other, many buyers, especially end users, prefer the security of tangible, move-in ready assets.
Deep Dive: Villas, Apartments and Luxury
Within the housing market there are different but equally significant trends. The most notable growth has been in the villa market, where the number of transactions has jumped by 65% and the value by 56%. This surge highlights the strong demand from families and end-users looking for more space and planning a long-term stay in the city, a sign of a maturing market.
The apartment market, while remaining the largest by volume (accounting for about 76% of all transactions), has shown more moderate but extremely steady growth of 12% in value. The average price per square foot for apartments “under construction” reached AED 1,926, a significant increase of 28.6% over Q3 2024, led by a preference for studios and one-bedroom apartments.
The luxury segment continues to be in a world of its own. Nearly 590 property transactions worth over AED 20 million were recorded in the first quarter, cementing Dubai’s reputation as a global destination for high net worth individuals (HNWIs).
Conclusion: a mature and multi-layered market
Analysis of the Dubai market for the first quarter of 2025 reveals a picture of exceptional vitality. The market is not monolithic, but is a complex ecosystem in which both long-term investors in ‘under construction’ projects and end-users seeking finished homes are contributing to record growth. The strong performance on all fronts, from affordable apartments to luxury villas, is testament to the depth, resilience and continued global appeal of Dubai’s real estate market.
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