Dubai Real Estate Market Kicks Off 2025 with Strong Momentum
Dubai’s real estate sector has started 2025 on a high note, demonstrating remarkable resilience and growing investor confidence. The market recorded an impressive AED 35 billion in sales across 13,019 transactions in January alone, marking a 5% increase from December 2024. This upward trend signals a thriving property landscape, as both local and international buyers continue to explore the emirate’s dynamic real estate offerings.
Off-Plan Properties Lead the Market
Dubai’s real estate sector has started 2025 on a high note, demonstrating remarkable resilience and growing investor confidence. The market recorded an impressive AED 35 billion in sales across 13,019 transactions in January alone, marking a 5% increase from December 2024. This upward trend signals a thriving property landscape, as both local and international buyers continue to explore the emirate’s dynamic real estate offerings.
Market Prices and Buyer Activity
While sales surged, the market experienced a slight 0.57% dip in the average price per square foot, which settled at AED 1,484. This minor correction follows a peak in December 2024 and is seen as a natural stabilisation rather than a downturn.
Average Property Prices in January 2025:
- Apartments – AED 1.75 million
- Townhouses – AED 2.67 million
- Villas – AED 7.18 million
One of Dubai’s top real estate brokerages, reported a 56% increase in buyer leads compared to the previous month. A significant portion of transactions was driven by mortgage financing, indicating the increasing role of both investors and end-users in shaping the market’s trajectory.
Top Performing Locations
Market Stability and Future Outlook
Record Supply Expected in 2025
Dubai’s real estate market is set to witness a record-breaking year in terms of new property handovers. According to industry forecasts, developers are expected to deliver 72,365 residential units in 2025—a staggering 171% increase from the previous year. This surge reflects Dubai’s ongoing urban expansion and developers’ commitment to meeting the demands of a rapidly growing population.
Trends in New Developments:
- 470+ new projects launched in 2024 – averaging more than one new project per day
- Focus on sustainable and affordable housing to align with global trends
- Apartments dominate new completions (77%), followed by townhouses (17%) and villas (6%)
Key areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay remain focal points for both investors and end-users. Significant handovers are expected in Sobha Hartland, Arjan, and JVC during Q1 2025, further driving market activity.
Record Supply Expected in 2025
Dubai’s real estate market is set to witness a record-breaking year in terms of new property handovers. According to industry forecasts, developers are expected to deliver 72,365 residential units in 2025—a staggering 171% increase from the previous year. This surge reflects Dubai’s ongoing urban expansion and developers’ commitment to meeting the demands of a rapidly growing population.
Trends in New Developments:
- 470+ new projects launched in 2024 – averaging more than one new project per day
- Focus on sustainable and affordable housing to align with global trends
- Apartments dominate new completions (77%), followed by townhouses (17%) and villas (6%)
Key areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay remain focal points for both investors and end-users. Significant handovers are expected in Sobha Hartland, Arjan, and JVC during Q1 2025, further driving market activity.
Final Thoughts
As 2025 unfolds, Dubai’s real estate market is set for another year of growth, innovation, and investment opportunities. With a strong pipeline of new developments, increasing demand for off-plan properties, and continued government initiatives fostering a pro-investment environment, Dubai remains a top destination for property buyers worldwide. Whether you’re an investor or a homebuyer, now is the time to explore the city’s thriving real estate sector.