Following a record-breaking 2024, Dubai’s real estate sector maintained its momentum, recording notable gains in prices and transaction values. At the start of 2025, the ValuStrat Price Index (VPI) reached 204.2 points, marking a 1.7 percent monthly increase and a 27 percent rise year-on-year. Villa values climbed to 264.2 points, while apartments reached 165 points, all benchmarked to a base of 100 points in January 2021.
Villa monthly capital gains slowed to 2 percent, with an annual increase of 31.2 percent. The strongest annual performers included villas in Jumeirah Islands, Palm Jumeirah, Emirates Hills and Dubai Hills Estate.
Apartment prices rose by 1.4 percent monthly, recording an annual growth of 23.1 percent. The highest yearly capital gains were seen in The Greens, Palm Jumeirah, The Views, Town Square and Dubailand Residence Complex. Notably, three communities, Palm Jumeirah, The Greens, and Jumeirah Beach Residence, now have apartment valuations surpassing their 2014 price peaks.
Off-plan registrations grow 37.9 percent
Dubai’s real estate sector has seen a surge in demand for off-plan properties in recent years. Last month, Oqood (contract) registrations for off-plan homes fell 13.5 percent monthly but were 37.9 percent higher on an annual basis.
Off-plan properties in Dubai represented 69.1 percent of all home sales in January. The volume of ready secondary-home transactions also declined by 5.1 percent monthly but were 7 percent higher than the same period last year
The top off-plan locations last month included projects in Dubailand Residence Complex, Emaar South, Damac Hills 2, Jumeirah Village Circle and Business Bay.
Dubailand Residence Complex broke its individual record with the highest number of off-plan homes traded in one month. Meanwhile, most ready homes sold were in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai and Jumeirah Lake Towers.
Most popular areas for property ownership
In January, Dubai’s real estate sector achieved a 23 percent annual increase in transactions to 14,238. The sector also witnessed a 24 percent increase in transaction value to $12.09 billion.
According to the latest data from Property Finder, 31 percent of people who seek to own or invest in properties were searching for one-bedroom units, with 37 percent showing an inclination for two-bedroom apartments and 15 percent for studios. In addition, 37 percent of those seeking villas or townhouses were searching for three-bedroom units and 50 percent for four-bedroom or larger options.
Several popular areas for apartment ownership in Dubai’s real estate sector emerged in January including Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay and Palm Jumeirah. Meanwhile, Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan and Damac Hills 2 were the most desired areas to own villas and townhouses.
Read: Ras Al Khaimah real estate transactions grow 118 percent to over $4 billion in 2024
Rental trends and insights
Key rental trends emerged in Dubai’s real estate sector last month. Around 59 percent of tenants looking for apartments preferred furnished properties, while 39 percent turned to unfurnished options.
Preferences varied among tenants who sought villas or townhouses, with around 48 percent searching for unfurnished units and 52 percent looking for furnished properties. In addition, 42 percent of tenants looked for three-bedroom villas and 35 percent searched for four-bedroom or larger options.
When searching for apartments, 33.4 percent of tenants were looking for one-bedroom units, while 33 percent expressed a preference for two-bedroom apartments and 21 percent for studios.
The top areas to rent apartments in Dubai included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay and Deira. Meanwhile, Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha and Al Furjan were popular when it came to searches to rent villas and townhouses.
