Dubai property market commenced 2025 on a strong note, marked by a sharp increase in villa transactions. According to data from the Dubai Land Department (DLD), villa sales recorded a 65% jump in transaction volume and a 56% rise in value. This strong performance helped drive a 23% year-on-year increase in overall property transactions, which reached 42,422 deals, with the total transaction value climbing 29% to Dh114 billion.
Villas Outperform, Despite Apartments Holding Volume Lead
Although apartments continued to account for the majority of sales by volume, villas emerged as the standout segment. A total of 10,185 villa transactions were recorded in Q1 2025, valued at Dh53.4 billion, indicating strong end-user and investor demand despite constrained supply. Apartment sales rose 14% to 32,237 transactions, with total value up 12% to Dh60.8 billion. Off-plan properties remained a key market component, comprising 59% of total transactions, with 24,942 deals—a 25% year-on-year increase.
Shifting Preferences: Completed Prime Properties Gain Traction
While off-plan transactions continued to dominate, a shift in buyer preference became evident. Prime off-plan deals dropped 30%, whereas completed luxury property transactions surged 77%. This change highlights the growing inclination toward ready-to-move-in, high-quality residences, indicating a more mature and discerning buyer base within the Dubai market.
Compared to Q4 2024, the market saw a typical seasonal slowdown, with a 10% dip in transaction volumes and a 3% decrease in value. However, not all segments followed this trend. Villa transactions rose 12%, and prime property sales increased 21%. Additionally, there was a notable 51% rise in buyer leads, underlining strong demand and continued interest in Dubai’s real estate.
Q1 2025 reaffirmed Dubai’s position as a resilient and attractive global real estate destination. The increase in end-user and mortgage-backed purchases indicates a solidifying belief in Dubai as a stable, long-term residential and investment hub.
Leasing Market Experiences Robust Growth
Dubai’s rental segment also posted strong figures, with leasing transactions rising 49% year-on-year and tenant leads growing by 36%. Rental prices for apartments and townhouses increased by 14% and 7% respectively, while villa leasing soared by 52% compared to the previous quarter. This surge reflects rising demand for spacious homes, driven by the city’s growing population and evolving lifestyle preferences.
Market sentiment remained upbeat, with buyer enquiries across all asset classes increasing significantly. Overall, enquiries rose 14% year-on-year and 51% quarter-on-quarter. Leads for apartments were up 30% from Q4 2024 and 12% year-on-year. Villa enquiries grew by 38% quarter-on-quarter and 5% year-on-year. Notably, townhouses witnessed a 64% spike in enquiries from the previous quarter and a 30% increase year-on-year, highlighting their appeal as a spacious yet cost-effective option.
Market Momentum Sustained by Investor Appetite and Population Growth
The consistent demand from investors, coupled with ongoing population growth and a strong preference for prime and villa properties, has kept Dubai’s real estate market on an upward trajectory.
Despite the current momentum, challenges such as escalating prices and evolving investor sentiment could impact enthusiasm for off-plan investments. Market performance in the latter half of the year will depend on timely project deliveries and broader economic conditions. Nevertheless, Dubai continues to present compelling opportunities for investors and end-users alike.
Structural Advantages Continue to Attract Global Buyers
Dubai’s competitive edge lies in its economic stability, tax benefits, and high quality of life. These factors continue to attract affluent individuals and families seeking luxury living. The increasing proportion of mortgage-backed buyers also points to a shift toward long-term commitments, further stabilizing the market landscape.
Industry experts emphasized that Dubai’s real estate market remains strong, with Q1 2025 results highlighting its continued global appeal. “If current supply and economic trends remain favorable, the emirate is well-positioned for sustained growth across both the sales and leasing segments,” noted a market analyst.
Source: https://www.khaleejtimes.com/business/villa-market-outshines-as-dubai-realty-posts-big-q1-sales-surge
