Dubai Real Estate Weekly Market Analysis 10-Feb-2025

Record-Breaking Week for Dubai Real Estate. The total transactions AED 10.26 billion, a 38.6% increase over last week’s number. Off-plan contributed 54.4%, while Ready properties contributed 45.6%.

The Dubai real estate market experienced a substantial surge in transactions during Week 5, reaching a grand total of AED10.26 billion. This marks a significant 38.6% increase from the previous week’s total of AED7.4 billion, highlighting strong investor confidence and heightened market activity.Off-Plan vs. Ready Properties: A Competitive Market

Off-plan properties accounted for 54.4% of the total market transactions, registering AED5.58 billion in sales. Ready properties followed closely with AED4.68 billion, contributing 45.6% to the total.Off-Plan Transactions Breakdown

• Flats: AED3.54 billion (63.5% of off-plan transactions)
• Villas: AED1.89 billion (33.8%)
• Hotel Apartments & Rooms: AED46.3 million (0.8%)
• Commercial Properties: AED105.1 million (1.9%)

Apartments remained the dominant category, reflecting continued demand for new residential developments, while villas also held a substantial share of off-plan transactions.

Most Active Areas in Off-Plan Transactions

• Wadi Al Safa 5: AED899.3 million (16.1% of Off-Plan market)
• Business Bay: AED383.0 million (6.9%)
• Nad Al Shiba First: AED248.1 million (4.4%)
• Jumeirah Village Circle: AED229.3 million (4.1%)
• Al Yufrah 1: AED228.4 million (4.1%)

These areas saw the highest transaction values, with Wadi Al Safa 5 leading significantly, demonstrating investor confidence in new developments in these locations.

• Flats: AED2.27 billion (48.6% of ready transactions)
• Villas: AED515 million (11.0%)
• Hotel Apartments & Rooms: AED1.69 billion (36.0%)
• Commercial Properties: AED201.9 million (4.3%)

The ready property market saw a diverse mix of transactions, with flats leading the category. A notable 36.0% contribution from hotel apartments and rooms underscores the strong interest in hospitality investments, likely driven by Dubai’s robust tourism industry. It’s worth mentioning that this big number is due to the sale of The Jumeirah Gate Hotel for around AED 1.58 billion.

Most Active Areas in Ready Transactions

• Jumeirah Beach Residence: AED1.64 billion (35.6% of Ready market)
• Business Bay: AED400.7 million (8.6%)
• Burj Khalifa: AED329.4 million (7.0%)
• Dubai Marina: AED241.5 million (5.2%)
• Palm Jumeirah: AED231.3 million (4.9%)

Jumeirah Beach Residence stood out as the leader in the ready segment due to the sale of The Jumeirah Gate Hotel for around AED 1.58 billion.

Market Insights & Trends

• Significant Growth: The AED10.26 billion in transactions signals a remarkable rebound, reflecting increasing investor appetite and confidence in Dubai’s real estate sector.
• Off-Plan Dominance: The higher share of off-plan transactions suggests that buyers are keen on securing properties in developing communities with promising capital appreciation potential.
• Hotels & Hotel Apartments on the Rise: The strong performance of hotel apartments and rooms, particularly in the ready segment, indicates an optimistic outlook for short-term rental investments.
• Prime Areas Lead Transactions: Wadi Al Safa 5 and Jumeirah Beach Residence were the most active areas for off-plan and ready properties, respectively, showcasing the demand for strategic and high-value locations.

Conclusion

Dubai’s real estate market continues to exhibit resilience and growth, with Week 5 recording an impressive surge in transaction volume. The balanced performance between off-plan and ready properties demonstrates a healthy market, catering to both long-term investors and end-users. Looking ahead, this upward momentum may sustain as Dubai remains a global investment hotspot, driven by favorable regulations, economic growth, and an influx of international buyers.