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Dubai’s real estate market continued its robust start to 2025, recording total sales worth AED142.7bn ($38.9bn) in Q1, the second highest quarterly figure on record. This represents a 30.3% year-on-year increase in value, with 45,485 sales transactions, up 22.8% from the previous year.
According to a market update by fam Properties, Q1 results were just slightly below the all-time quarterly sales record of AED147.2bn ($40.1bn) from 50,218 transactions in Q4 2024.
Significant Year-on-Year Increases
The first quarter of 2025 saw notable year-on-year increases across all real estate sectors:
- Plot sales jumped 193.8% to AED35.5bn ($9.7bn) from 2,926 transactions.
- Villa sales increased by 43.1% to AED41.3bn ($11.2bn) from 8,369 deals.
- Apartment sales rose by 12.6% to AED62.3bn ($17bn) from 32,884 transactions.
- Commercial sales were up by 25.2% to AED3.6bn ($980m) from 1,212 deals.
Rising Property Values
Rising property values were highlighted by a Q1 median price of AED1,563 ($426) per sq ft, compared to previous years:
- 2021: AED889 ($242)
- 2022: AED1,124 ($306)
- 2023: AED1,283 ($349)
- 2024: AED1,497 ($408)
Market Resilience and Growth
Firas Al Msaddi, CEO of fam Properties, noted, “These figures underscore the remarkable resilience and strength of Dubai’s real estate market. This sustained upward trend cements Dubai’s position as a prime real estate investment hub, attracting global investors alongside strong demand from local and regional buyers.”
Historical Performance
Dubai’s Q1 property sales over the last five years have risen significantly:
- 2020: AED21bn ($5.7bn) from 9,800 transactions
- 2021: AED24.6bn ($6.7bn) from 11,600 transactions
- 2022: AED54.6bn ($14.1bn) from 20,200 transactions
- 2023: AED89bn ($24.2bn) from 31,100 transactions
- 2024: AED109.5bn ($29.1bn) from 37,000 transactions
Top Performing Areas
The top five performing areas in Q1 were:
- Jumeirah Village Circle: 3,605 transactions valued at AED4.559bn ($1.2bn)
- Wadi Al Safa: 3,596 transactions valued at AED7.642bn ($2.1bn)
- Business Bay: 2,782 transactions valued at AED7.265bn ($2bn)
- Dubai South: 2,676 transactions valued at AED8.745bn ($2.4bn)
- Dubai Marina: 2,583 transactions valued at AED9.284bn ($2.5bn)
Expensive Properties
The most expensive individual property sold in Q1 was a luxury villa at Dubai Hills Estate for AED140m ($38.1m). We at Sevendale Properties LLC offer Commercial Space Leasing in Jumeirah Village Triangle Dubai. The most expensive apartment sold was for AED116m ($31.6m) at The Rings 1 at Jumeirah Second.
Sales Distribution
Properties worth AED1-2m ($272,000-545,000) accounted for 31% of sales (14,242), followed by:
- 26% below AED1m ($272,000)
- 19% between AED2-3m ($545,000-817,000)
- 15% between AED3-5m ($817,000-1.4m)
- 9% more than AED5m ($1.4m)
Market Dynamics
Overall, first sales from developers significantly outpaced re-sales in the secondary market:
- 65% of transactions were first sales by volume
- 61% of transactions were first sales by value
This strong performance underscores Dubai’s continued appeal as a leading real estate investment destination.
Article Credit: Arabian Business