The Dubai real estate market has demonstrated exceptional strength in the first quarter of 2025, with total transactions reaching AED 114.08 billion ($31 billion), marking a substantial 29.19% increase compared to the same period in 2024. The market recorded 42,269 transactions during this period, representing a robust 23.11% year-on-year growth.
The off-plan market emerged as a significant contributor to this growth, with 24,920 transactions completed in Q1 2025, up from 20,006 in 2024. The ready-to-move-in market saw transaction values surge from AED 43.9 billion to AED 60.2 billion YoY.
In a notable development within the rental sector, Dubai South has emerged as the standout performer, recording an impressive 26.37% increase in rental prices. This surge reflects the neighborhood’s growing appeal, driven by —
- its strategic location
- ongoing development projects
Following closely behind, Al Furjan experienced a substantial 21.56% rise in rental rates.
The overall rental market has shown significant momentum, with average rents per square foot climbing from AED 71 to AED 81, representing a 14% increase across the emirate. This growth is attributed to strong demand from both local and international tenants, supported by Dubai’s robust economic performance and strategic initiatives.
Market experts project continued growth throughout 2025, with property prices expected to rise by 5% to 10%. The market’s expansion is further supported by the planned delivery of approximately 72,365 residential units this year.
According to industry leaders, this sustained growth reflects Dubai’s successful alignment with its long-term vision for economic diversification and urban development.
The remarkable performance of Dubai’s real estate sector is underpinned by various factors, including —
- population growth
- government initiatives
- the city’s increasing appeal as a global business hub
Implementing strategic policies and continuing infrastructure development have reinforced investor confidence, positioning Dubai as a leading destination for real estate investment.