Dubai Real Estate Property Transactions Rise by 23% in Q1 2025

Dubai’s real estate market continued its upward momentum in the first quarter of 2025, with significant increases in both transaction volumes and sales values despite broader global economic uncertainty.

According to recent data, residential property transactions rose by 23% year-on-year during Q1 2025, surpassing 42,000 deals. Total sales value grew by 29% compared to the same period last year, reaching approximately AED 114 billion. Off-plan sales remained a key driver of the market, accounting for 59% of all transactions, reflecting sustained demand for newly developed properties and investor confidence in Dubai’s long-term prospects.

The average residential sale price also climbed to AED 1,535 per square foot, marking a 16% increase compared to Q1 2024. Limited supply, particularly for villas and larger homes, continues to place upward pressure on prices, while rental yields remain attractive across many segments. Rents have also increased steadily, further boosting the emirate’s appeal to both regional and international investors.

On the supply side, 7,848 residential units were completed in the first quarter alone. Looking ahead, approximately 97,000 units are expected to be delivered by the end of 2026. While this pipeline may help moderate price growth over time, key residential areas in Dubai continue to experience limited inventory, ensuring strong demand remains in the near term.