Dubai Real Estate Surges in Q1 2025: AED142.7 Billion in Sales Signals Unstoppable Growth

Dubai’s real estate market has demonstrated remarkable resilience and growth in the first quarter of 2025, recording total sales worth AED142.7 billion (approximately $38.9 billion). This figure represents a 30.3% increase compared to the same period in 2024, underscoring the sector’s robust performance and its appeal to both local and international investors.​

Transaction Volume and Value

The total number of sales transactions reached 45,485 in Q1 2025, marking a 22.8% year-on-year increase. This surge in both transaction volume and value highlights the sustained demand for real estate in Dubai. Notably, these figures are only slightly below the all-time quarterly sales record of AED147.2 billion ($40.1 billion) from 50,218 transactions in Q4 2024. ​

Sector-Specific Performance

Breaking down the performance by sector:​

• Plot Sales: There was a significant 193.8% year-on-year increase, with 2,926 transactions amounting to AED35.5 billion ($9.7 billion).​
• Villa Sales: This segment experienced a 43.1% rise, totaling AED41.3 billion ($11.2 billion) from 8,369 deals.​
• Apartment Sales: Sales in this category rose by 12.6% to AED62.3 billion ($17 billion) from 32,884 transactions.​
• Commercial Sales: This sector saw a 25.2% increase, reaching AED3.6 billion ($980 million) from 1,212 deals. ​

Median Price Trends

The median price per square foot has shown a consistent upward trajectory over the past five years:​

• 2021: AED889 ($242)​
• 2022: AED1,124 ($306)​
• 2023: AED1,283 ($349)​
• 2024: AED1,497 ($408)​
• 2025: AED1,563 ($426)​

This steady increase reflects the appreciating value of properties in Dubai’s dynamic market. ​

Historical Sales Growth

A review of Dubai’s Q1 property sales over the past five years illustrates the market’s impressive growth:​

• 2020: AED21 billion ($5.7 billion) from 9,800 transactions​
• 2021: AED24.6 billion ($6.7 billion) from 11,600 transactions​
• 2022: AED54.6 billion ($14.1 billion) from 20,200 transactions
• 2023: AED89 billion ($24.2 billion) from 31,100 transactions​
• 2024: AED109.5 billion ($29.1 billion) from 37,000 transactions​

These figures highlight a consistent upward trend in both transaction volume and value, reinforcing Dubai’s position as a leading real estate investment hub.

Top-Performing Areas

The top five areas in terms of transaction volume during Q1 2025 were:​

1. Jumeirah Village Circle:3,605 transactions valued at AED4.559 billion ($1.2 billion)
2. Wadi Al Safa:3,596 transactions valued at AED7.642 billion ($2.1 billion)​
3. Business Bay:2,782 transactions valued at AED7.265 billion ($2 billion)​
4. Dubai South:2,676 transactions valued at AED8.745 billion ($2.4 billion)​
5. Dubai Marina:2,583 transactions valued at AED5.497 billion ($1.5 billion) ​

Expert Insights

Firas Al Msaddi, CEO of fäm Properties, commented on the market’s performance:​

“Once again we’re seeing figures which emphatically underscore the remarkable resilience and strength of Dubai’s real estate market, as the consistent growth of recent years continues. This sustained upward trend cements Dubai’s position as a prime real estate investment hub, drawing increasing interest from global investors alongside strong demand from local and regional buyers.” ​

Rental Market Dynamics

The rental market has mirrored the sales sector’s growth, with average rents per square foot rising by 14%, from AED71 ($19) to AED81 ($22). Notably, Dubai South and Al Furjan led this growth, posting increases of 26.37% and 21.56%, respectively. ​

Weekly Transaction Highlights

In the week spanning March 31 to April 4, 2025, the Dubai real estate sector recorded transactions worth AED8.9 billion ($2.4 billion). This included 2,199 sales transactions totaling AED6.14 billion ($1.7 billion). Among the most notable sales were an apartment in Volante, Business Bay, sold for AED37 million ($10.1 million), and an apartment in Bugatti Residences, Business Bay, sold for AED24 million ($6.5 million). ​

Future Outlook

Analysts predict that Dubai real estate prices are poised to increase by 5% to 10% in 2025, reflecting sustained demand and market confidence.

In conclusion, Dubai’s real estate market has exhibited robust growth in the first quarter of 2025, characterized by significant increases in transaction volumes and values across various

By Kiana Jehangir