Dubai’s real estate market has kicked off 2025 with remarkable momentum, recording an impressive Dh35 billion in sales across 13,019 transactions in January, marking a 5% increase from December 2024. The surge in property activity highlights the resilience and continued investor confidence in Dubai’s dynamic real estate sector.
Off-plan properties dominated the market, making up 56% of total sales. This trend reflects the sustained demand for newly launched projects, with prominent developers like Emaar, Sobha, Damac, and Danube leading the way in shaping the future of Dubai’s property offerings.
Despite a slight 0.57% dip in the average price per square foot to Dh1,484, the market is seen as stabilizing rather than experiencing a downturn. Average selling prices across property types were recorded at Dh1.75 million for apartments, Dh2.67 million for townhouses, and Dh7.18 million for villas.
Betterhomes, a leading property brokerage, reported a significant 56% increase in buyer leads compared to the previous month, signaling continued strong demand. The majority of transactions in January were financed through mortgages, underlining the growing role of both investors and end-users in the market.
In terms of popular locations, Jumeirah Lakes Towers (JLT), Business Bay, and Dubai Marina topped the list for apartment buyers, while areas like Dubailand, Arabian Ranches, and Damac Hills 2 remained sought after for villas. These regions continue to attract buyers seeking both lifestyle amenities and investment potential.
Looking ahead, the outlook for Dubai’s real estate market remains highly positive. With forecasts predicting a record 72,365 residential units to be completed in 2025 — a staggering 171% increase from the previous year — Dubai’s growth trajectory shows no signs of slowing down. Developers are focusing on sustainable and affordable housing options to meet the diverse needs of Dubai’s expatriate community and align with global sustainability trends.
As the market stabilizes, analysts predict that minor price fluctuations may occur, but the strong fundamentals of Dubai’s economy and infrastructure investments are expected to maintain investor confidence. The introduction of new residential units will not only meet buyer demand but also enhance the diversity of offerings in the market, catering to various segments, from affordable apartments to luxury villas.
Investor sentiment remains optimistic, with Dubai continuing to attract global attention due to its strategic location, robust economy, and favorable regulatory environment. As the city continues its urban expansion, Dubai’s real estate market remains a key player in the global property landscape.
