Dubai real estate market has started 2025 with strong momentum, recording AED 44.4 billion ($12.1 billion) in property sales during January. This represents a 24.1% increase in value compared to the same month last year

The number of transactions also surged, reaching 14,236 deals, a 23.2% increase over January 2024. The growth reflects Dubai’s sustained real estate boom, fueled by investor confidence and demand from both local and international buyers.

Land Sales See a 151% Increase

Among Dubai properties categories, land sales saw the most significant jump, with 811 plots sold for a total value of AED 8.6 billion ($2.3 billion). This marks a 151.9% month-on-month increase, highlighting growing investor interest in prime land developments.

Meanwhile, villa sales totaled AED 16.4 billion ($4.5 billion), with 3,117 transactions, up 89.6% year on year. Apartment sales also remained strong, reaching AED 18.2 billion ($5 billion), with 9,945 units sold, reflecting a 7.1% increase in volume.

Commercial property transactions saw 363 deals amounting to AED 1.2 billion ($327 million), marking a 17.9% rise in volume from January 2024.

Real Estate Market Trends and Price Insights

Despite the surge in sales, the average price per square foot dropped slightly by 4% to AED 1,550 ($422). However, compared to five years ago, this still represents an 81.2% increase, up from AED 855 ($233) in January 2020.

Real Estate Five-Year Growth of Dubai’s Property Market

Dubai’s property sales have risen by 822% in value over the last five years:

• January 2020 – AED 4.8 billion ($1.3 billion) from 2,700 transactions
• January 2021 – AED 6.6 billion ($1.8 billion) from 3,300 transactions
• January 2022 – AED 16.3 billion ($4.4 billion) from 5,700 transactions
• January 2023 – AED 27.8 billion ($7.6 billion) from 9,700 transactions
• January 2024 – AED 35.8 billion ($9.7 billion) from 11,600 transactions

The most expensive villa sold in January was a luxury property in Dubai Hills Estate, fetching AED 140 million ($38.1 million). The highest-priced apartment, located at Ava At Palm Jumeirah By Omniyat, sold for AED 57 million ($15.5 million).

New Sales vs. Resales and Price Segments

The majority of transactions were new sales from developers, accounting for 65% of total sales volume, compared to 35% in resales. In terms of value, new sales made up 60%, while resales comprised 40%.

Property sales were distributed across price segments as follows:

• 9% of sales were above AED 5 million ($1.4 million)
• 31% of sales ranged between AED 1-2 million ($272,000-$545,000)
• 27% of sales were below AED 1 million ($272,000)
• 20% of sales were between AED 2-3 million ($545,000-$817,000)
• 14% of sales were between AED 3-5 million ($817,000-$1.4 million)

With Dubai’s property market continuing to thrive, the strong start to 2025 suggests further growth ahead, supported by high investor confidence, strategic developments, and increasing demand across all property segments.

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Source: The Finance World

07th February, 2025