An aerial view of the Dubai skyline at night.
Dubai’s realty market documented robust growth in January 2025, specifically in the off-plan segment, with nearly 14,238 transactions. This marks a significant 23.2% rise in volume than January 2024. The total value of these transactions touched Dh 44.4 billion, showing a 24% YoY rise.
Investors showed an apparent inclination for specific categories of housing.
| Types of Housing | Percentage of Property Seekers |
| 1-bedroom units | 31% |
| 2-bedroom apartments | 37% |
| Studio apartments | 15% |
| Villas & Townhouses with 3 bedrooms | 37% |
| Villas & Townhouses with 4 or more bedrooms | 50% |
The most in-demand locations for apartments sought by investors were —
- Dubai Marina
- Jumeirah Village Circle
- Downtown Dubai
- Business Bay
- Palm Jumeirah
Those investing in villas sought the following locations —
- Dubai Hills Estate
- Palm Jumeirah
- Dubailand
- Al Furjan
- Damac Hills 2
Rental preferences also play a pivotal role. About 59% of renters sought furnished properties, while 39% chose unfurnished options. Around 52% of tenants sought furnished villas, and 48% opted for unfurnished ones. The most preferred neighborhoods for rental apartments were —
- Jumeirah Village Circle
- Dubai Marina
- Downtown Dubai
- Business Bay
- Deira
Popular areas for rental searches for villas were —
- Jumeirah
- Dubai Hills Estate
- Damac Hills 2
- Al Barsha
- Al Furjan
Off-plan transactions surged by around 15% (i.e., 52% of total transactions) in January 2025. According to Engel & Völkers Middle East, off-plan transactions accounted for 63% of all property sales in 2024, up from 54% in 2023. Buoyed by rising demand for new developments backed by competitive pricing and attractive payment plans, total residential sales transactions increased by 40.3% to 170,992 units in 2024.
Luxury properties continue to grab the attention of ultra-wealthy investors. Popular neighborhoods are —
- Palm Jumeirah
- Downtown Dubai
- Dubai Marina
Investors seeking long-term capital appreciation are showing interest in off-plan projects in new developments like Palm Jebel Ali and The Oasis.
In January, land sales accounted for the biggest increase, with 811 plots (i.e., a 151.9% month-on-month leap in volume) selling for AED 8.6 billion.
Compared to January 2024, villa sales totaling AED 16.4 billion rose in volume by 89.6% to 3,117 units, and apartment sales worth AED 18.2 billion increased by 7.1% to 9,945 units.
Commercial property transactions saw 363 units sold for AED 1.2 billion; it shows a 17.9% increase in volume over January last year.
Property sales in Dubai in January this year have risen by 822% in value over the last five years. The costliest individual property sold in January fetched AED 140 million for a luxury villa at Dubai Hills Estate. The priciest apartment sold in January went for AED 57 million at Ava At Palm Jumeirah By Omniyat.
First sales from developers were significantly higher than those of resale properties (i.e., 65% over 35% in volume and 60% against 40% in overall value).
With properties worth over AED 5 million accruing for 9% of total sales, 31% were in the AED 1-2 million range, 27% below AED 1 million, 20% between AED 2-3 million, and 14% between the AED 3 and AED 5 million bracket.
Going by the January sales figures, this year has started on a promising note. The luxury property market, as well as the affordable housing segment, are set for record sales, with new projects being added to the market. Neighborhoods with added amenities are drawing new investors and accelerating sales.
