Dubai Real Estate Market Sees Robust Growth in January 2025
Dubai’s ultra-luxury real estate market continues to captivate global investors, cementing its reputation as a hub for exclusive living experiences. Among the key players, OMNIYAT Properties has emerged as a dominant force, achieving remarkable sales milestones across iconic locations such as Palm Jumeirah, Business Bay, and Downtown Dubai.
Property Preferences: What Buyers Are Looking For
Homebuyers and investors showed strong preferences for specific property types:
- Apartments:
- 31%of buyers sought one-bedroom units
- 37%preferred two-bedroom apartments
- 15%showed interest in studio apartments
- Villas & Townhouses:
- 37%of buyers opted for three-bedroom units
- 50%preferred four-bedroom or larger homes
Most Sought-After Locations
For apartment buyers, Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah remained the top choices. Meanwhile, villa and townhouse buyers favored Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan, and Damac Hills 2.
Rental Market Trends: Furnished vs. Unfurnished
Rental preferences further highlighted evolving market trends. Approximately 59% of tenants searched for furnished apartments, while 39% opted for unfurnished units. For villas, the split was more balanced, with 52% favoring furnished homes and 48% preferring unfurnished ones.
The top areas for apartment rentals included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira, while Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Al Furjan were the most popular for villa rentals.
Market Dynamics: Off-Plan vs. Existing Properties
The existing property market saw 6,918 transactions, a 32% increase from 5,185 transactions in January 2024. Transaction values also surged by 41%, with Palm Jebel Ali alone achieving Dh2.1 billion across 95 deals, and Al Yelayiss 1 recording Dh1.7 billion, up from just Dh102 million last year.
Meanwhile, the off-plan segment witnessed a 1.3% decline in transaction value, totaling Dh15.1 billion, marking the first drop in three years. However, the number of off-plan transactions rose by 15%, constituting 52% of total transactions in January 2025.
Industry Insights & Future Outlook
According to Cherif Sleiman, Chief Revenue Officer at Property Finder, Dubai’s real estate market continues to showcase strong momentum, supported by key government initiatives such as the expansion of freehold ownership. These policies are opening new opportunities for both investors and homeowners.
Additionally, the Central Bank of the UAE’s focus on responsible lending is creating a more stable financial environment, reinforcing long-term growth. These developments align with the Dubai Real Estate Sector Strategy 2033, marking a transformative phase for the industry.
The Dominance of Off-Plan Sales & Luxury Market Trends
Despite the slight decline in transaction value, off-plan sales remained dominant, accounting for 63% of all property transactions in 2024, up from 54% in 2023, Competitive pricing and attractive payment plans continue to drive this demand.
Luxury properties also remain a major focus, with Palm Jumeirah, Downtown Dubai, and Dubai Marina attracting high-net-worth individuals. Emerging developments such as Palm Jebel Ali and The Oasis are also generating interest among buyers seeking exclusivity and long-term capital appreciation.
“The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors looking for properties that offer long-term value. Government-led initiatives, such as long-term visas and free zone expansions, further enhance Dubai’s appeal as a premier real estate investment hub.”
Conclusion
Dubai’s real estate market continues to evolve, offering lucrative opportunities for investors, homeowners, and tenants alike. With government-backed initiatives, sustained investor confidence, and a growing demand for premium and off-plan properties, 2025 is shaping up to be another strong year for the industry. Whether you’re looking to buy, rent, or invest, Dubai remains a thriving market with promising prospects for the future.