The Dubai real estate sector maintained its upward trajectory in January 2025, with a total of 14,238 property transactions recorded. This reflects a substantial 23% increase compared to the same period in 2024. The total value of these transactions reached AED 44.4 billion, marking a 24% rise from the previous year, according to data released by Property Finder, the MENA region’s leading property portal.
Market Trends and Buyer Preferences
A significant portion of buyers and investors demonstrated a strong preference for specific property types:
- 31% of prospective buyers searched for one-bedroom apartments, while 37% showed interest in two-bedroom units. Studio apartments accounted for 15% of the searches.
- For villas and townhouses, 37% of buyers sought three-bedroom units, whereas 50% preferred four-bedroom or larger residences.
- The most in-demand areas for apartment ownership included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah.
- Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan, and Damac Hills 2 emerged as top choices for villa and townhouse ownership.
Evolving Rental Preferences
Dubai’s rental market also showcased notable trends:
- 59% of apartment seekers preferred furnished units, while 39% opted for unfurnished options.
- In the villa/townhouse segment, 48% of tenants looked for unfurnished properties, while 52% favored furnished homes.
- Demand for one-bedroom apartments stood at 33.4%, closely followed by two-bedroom units at 33% and studios at 21%.
- Among villa seekers, 42% were interested in three-bedroom properties, while 35% searched for four-bedroom or larger homes.
- The most searched areas for renting apartments were Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira.
- Popular rental locations for villas and townhouses included Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Al Furjan.
Performance of Off-Plan and Existing Property Markets
The existing property market saw robust growth, with transactions increasing from 5,185 in January 2024 to approximately 6,918 in January 2025, reflecting a 32% rise in volume and a 41% increase in value.
- Palm Jebel Ali led in transaction value, recording AED 2.1 billion across 95 deals.
- Al Yelayiss 1 witnessed a significant surge, reaching AED 1.7 billion in transaction value, a sharp increase from AED 102 million the previous year.
In contrast, the off-plan segment saw a slight 1.3% decline in total transaction value, amounting to AED 15.1 billion compared to AED 15.3 billion in January 2024. This marks the first dip in off-plan transaction value in three years. However, the volume of off-plan transactions continued to rise, increasing by 15%, representing 52% of total transactions for the month.
Industry Insights and Future Outlook
Commenting on the market performance, Cherif Sleiman, Chief Revenue Officer at Property Finder, highlighted the sector’s resilience and ongoing transformation. “As we move forward from a dynamic year, January 2025 has brought key milestones for the UAE’s real estate sector, demonstrating continued momentum. Initiatives such as the Dubai Land Department’s expansion of freehold ownership are creating fresh opportunities for investors and homeowners. Meanwhile, the Central Bank of the UAE’s emphasis on responsible lending is fostering financial stability, which will contribute to sustained market growth. These developments, aligned with the Dubai Real Estate Sector Strategy 2033, signal a transformative period for the industry.”
He further emphasized Property Finder’s commitment to providing data-driven insights that empower investors, home seekers, and developers to make well-informed decisions in an ever-evolving market.
Source: https://www.zawya.com/en/press-release/research-and-studies/property-finder-reveals-latest-data-for-dubais-ongoing-growth-across-off-plan-and-existing-real-estate-in-january-2025-dvymcpy0
