Dubai’s real estate market continues its historic ascent, setting new records in February 2025 with unprecedented sales volumes, soaring prices, and robust investor confidence.
Unprecedented Growth in Sales and Prices Dubai’s property market recorded an extraordinary Dh41 billion in sales volume, marking a 17 per cent month-on-month (MoM) increase. The total number of transactions reached 14,929, up 15 per cent from January. Meanwhile, average property prices climbed to an all-time high of Dh1,505 per square foot, reflecting a 1.41 per cent MoM increase and more than double the 2019 market low of Dh716 per square foot.
Off-Plan and Luxury Segments Drive Market Boom Off-plan properties dominated February’s transactions, accounting for 59 per cent of sales, demonstrating investor confidence in Dubai’s long-term growth. The luxury market flourished, with villas experiencing a staggering 60 per cent MoM price surge to an average of Dh11.48 million, while apartment prices rose 30 per cent to Dh2.26 million. Among the top-performing communities for apartments were Motor City, Jumeirah Village Circle (JVC), and Dubai Marina, while Jumeirah Golf Estates, The Villa, and Meadows led the villa segment.
Economic Resilience and Government Initiatives Propel Market Dubai’s booming real estate market is underpinned by strong economic performance, population growth, and strategic government policies. The emirate’s GDP grew by 4.2 per cent in 2024, outpacing global averages, while its population surged to 4.2 million, a 6 per cent annual increase. Skilled expatriates and entrepreneurs continue to relocate to Dubai, driven by golden visas and tax-free incentives.
The Dubai 2040 Urban Master Plan, emphasizing sustainable infrastructure and community-centric developments, has further strengthened investor sentiment. “The combination of pro-business policies, world-class infrastructure, and an influx of high-net-worth individuals has created the perfect environment for sustained real estate growth,” market experts noted.
Shift Toward Homeownership Amid Rising Rents Soaring rental prices have led to a shift in consumer behavior, with more residents opting for homeownership. Average annual rents for apartments and villas increased by 22 per cent and 28 per cent, respectively, in 2024, prompting many to invest in long-term assets. Betterhomes reported a 25 per cent MoM increase in buyer leads, with end-users comprising 53 per cent of transactions—a significant shift from an investor-dominated market.
Christopher Cina, Director of Sales at Betterhomes, highlighted that this trend reflects Dubai’s transformation from a transient hub to a permanent residence. Communities offering integrated amenities, such as Dubai Hills Estate and Palm Jumeirah, are particularly in demand.
Off-Plan Market Sees Strong Developer Activity February’s market was dominated by off-plan sales, with developers like Emaar (Dh4.11 billion), Sobha Group (Dh1.44 billion), and Damac Properties (Dh0.82 billion) leading the sector. International investors played a significant role, comprising 35 per cent of transactions, with Russian, Indian, and British buyers leading the charge.
“Dubai’s off-plan market delivers unmatched returns on investment,” said Jaykrishnan Bhaskar, a property consultant. “Projects near Expo City Dubai and Al Qudra’s eco-friendly districts are drawing ESG-focused buyers looking to blend luxury with sustainability.”
Mortgage Accessibility Fuels Market Growth Despite rising prices, mortgage transactions accounted for 64 per cent of sales, supported by competitive interest rates as low as 3.5 per cent for expatriates. The UAE Central Bank’s decision to maintain low interest rates in 2024 has kept financing accessible, with banks offering extended payment plans for off-plan purchases.
“Financing is no longer a barrier—it’s a catalyst,” said a senior mortgage specialist. “First-time buyers can secure homes with just a 15 per cent down payment, while investors leverage flexible terms to expand their portfolios.”
Future Projections: A Market Poised for Continued Expansion With Expo City Dubai boosting tourism and Dubai’s non-oil sector contributing 78 per cent to GDP, real estate analysts foresee a 12–18 per cent price increase in 2025. Mega-projects such as the Dh30 billion Marsa Al Arab waterfront development are expected to further accelerate market momentum.
“Dubai isn’t just competing with top global markets—it’s setting new benchmarks,” Bhaskar added. “The fusion of innovation, stability, and ambition makes it the ultimate safe haven for capital.”
As Dubai’s skyline continues to evolve, the city is not only growing taller but also becoming smarter, greener, and more inclusive, reinforcing its reputation as the world’s most dynamic property market.
Source: Khaleej Times
