Dubai Real Estate Market Review: March 2025

Land transactions in Mar. 2025 was 45% of the total transactions. The market declined approximately AED 4.5 billion from Feb. 2025, a 7% drop in market activity MoM. 36% increase YoY.

Dubai’s real estate market recorded a total transaction value of AED 61.04 billion in March 2025 across 18,200 transactions. While this represents a decline of 7% compared to February 2025’s AED 65.6 billion, the market still showed a strong year-over-year growth of 36% compared to March 2024’s AED 44.8 billion.

This growth underscores continued investor confidence, driven by strong off-plan sales and land transactions—which made up nearly 45% of the total value. The momentum reinforces Dubai’s rising status as a premier global investment destination.

Segment Breakdown

• Off-Plan Market: AED 19.55 billion
• Ready Market: AED 14.14 billion
• Land Transactions: AED 27.35 billion

The largest contributor to the total transaction volume was land sales, accounting for nearly 45% of the total market activity.

Market Performance by Property Type

1. Off-Plan Transactions

Off-plan sales continued to perform strongly, reaching a total of AED 19.55 billion, accounting for nearly 32% of the overall market value. The segment was largely driven by apartment sales, which totaled AED 15.45 billion, followed by villas at AED 3.38 billion. Commercial and hospitality assets also saw movement, with AED 569.4 million in shop and office sales, and AED 142.5 million in hotel apartments and rooms. This sustained activity reflects ongoing buyer interest in new developments and attractive payment plans offered by developers.

Top Performing Areas by Transaction Value

1. Business Bay – AED 1.91 billion
2. Marsa Dubai – AED 1.61 billion
3. Madinat Al Mataar – AED 1.45 billion
4. Jumeirah Village Circle – AED 1.08 billion
5. Madinat Dubai Al Mlaheyah – AED 1.07 billion

The average price per square meter for off-plan flats stood at AED 24,058, while off-plan villas averaged AED 15,358.

The off-plan segment was led by Business Bay, which continues to attract buyers with its central location and ambitious projects. Marsa Dubai and Madinat Al Mataar followed closely, driven by large-scale waterfront and suburban developments, respectively.

2. Ready Transactions

The ready market recorded AED 14.14 billion in sales, contributing 23% to the total transaction volume. Apartments once again led the way at AED 9.78 billion, with villas following at AED 2.69 billion. Hospitality assets such as hotel apartments and rooms accounted for AED 660.6 million, while shops and offices generated AED 1.0 billion. The demand for ready units remained steady, bolstered by investors seeking immediate returns and end-users prioritizing move-in-ready properties.

Top Performing Areas by Transaction Value

1. Burj Khalifa – AED 1.48 billion
2. Business Bay – AED 1.34 billion
3. Dubai Marina – AED 1.07 billion
4. Palm Jumeirah – AED 1.06 billion
5. Jumerah Village Circle – AED 721 million

The average price per square meter for ready flats stood at AED 17,139.59, while ready villas averaged AED 13,792.16.

In the ready market, premium and iconic locations took center stage. Burj Khalifa led the pack with over AED 1.4 billion in transactions, reflecting its enduring appeal. Business Bay again appeared as a top performer, highlighting its balanced mix of luxury residences and commercial offerings.

3. Land Transactions

Land continued to dominate the market with a total transaction value of AED 27.35 billion, representing a commanding 45% share of the overall market. This surge underscores the increasing activity from institutional investors and developers who are positioning themselves for long-term growth through large-scale or master-planned projects.

Key Market Insights

• Business Bay emerged as a standout performer, ranking among the top two areas in both the off-plan and ready segments—demonstrating its broad appeal and growing significance as a mixed-use urban hub.
• Dubai Marina and Jumeirah Village Circle also showed strong dual-segment performance, reflecting steady demand in high-density, lifestyle-focused communities.
• The dominance of land sales signals bullish investor sentiment and possibly the beginning of a new wave of mega-projects and community-scale developments across the city.

By Kiana Jehangir