Dubai’s property sector opened 2025 with a strong performance, buoyed by steady population growth and rising investor interest. The latest figures from the Dubai Residential Market Report reveal a 23% increase in transaction volumes in the first quarter compared to the same period last year. This reflects Dubai’s continued ability to balance investment opportunities with a high quality of life.
Off-plan properties remained the driving force behind market activity in Q1 2025, accounting for 69% of all residential transactions. Developers responded actively to market appetite by launching over 30,000 new units, predominantly apartments during the quarter.
The remaining 31% of transactions involved ready properties, indicating solid interest in already completed developments. Within this segment, apartments remained the dominant asset class, comprising 81% of total transactions.
Apartments Dominate, But Villas Rebound
Across the broader market, apartments continued to lead, representing 76% of all transactions. However, the villa and townhouse category made a strong comeback, with its share rising from 18% in the previous quarter to 24% in Q1 2025, highlighting renewed demand in this segment.
Peripheral Areas Drive New Supply
Key emerging communities such as Jumeirah Village Circle, Dubailand, Damac Hills 2, The Valley, and Damac Lagoons accounted for over half of total transaction volumes and newly introduced units. This shift underscores the growing focus on peripheral zones, driven by land constraints and affordability issues in central Dubai.
Prime Residential Segment: Continued Upward Momentum
Dubai’s luxury residential segment remained resilient, supported by the city’s ongoing attractiveness to high-net-worth individuals (HNWIs). Factors such as a business-friendly regulatory framework, the Golden Visa programme, and tax advantages continue to fuel interest at the top end of the market.
In Q1 2025, over 1,300 properties were sold at prices above AED 10 million (\$2.72 million), marking a 31% year-on-year increase. Unlike the general market, villas dominated the prime space, contributing 73% of luxury transactions. This represents a 52% annual rise and a 4% quarter-on-quarter increase.
High-End Villas in Demand Amid Tight Supply
Premium buyers are increasingly drawn to spacious villas in prestigious locations, with demand outstripping supply. Despite limited availability, buyer appetite remains strong, particularly among global elites seeking security, privacy, and stability amid international economic and political tensions.
Looking ahead, Dubai’s residential sector is expected to maintain its growth trajectory. The emirate’s political stability, pro-business governance, and open investment climate position it as a safe haven amid global volatility. However, the growing development pipeline will require careful alignment between supply and demand to maintain market equilibrium.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-forecast-for-2025-positive-as-worlds-wealthy-lured-by-golden-visas-low-tax-and-lifestyle
