Dubai’s real estate market posted exceptional results in April, with residential sales transactions reaching 17,447, an impressive 61 percent increase compared to the same month last year, while commercial rental activity surged, including a 22.4 percent rise in average office rents and a sharp 40.8 percent jump in warehouse rates.
These figures underscore Dubai’s continued strength as a magnet for global capital, even amid wider economic uncertainty and shifting investor sentiment worldwide.
“This performance underscores Dubai’s growing appeal to global investors, developers, and end-users seeking long-term growth and value in a secure, well-managed environment. The momentum reflects strong demand fundamentals and increasing recognition of Dubai as a safe haven and long-term growth market,” stated Daniel Hadi, CEO of Engel & Völkers Middle East.
Strong demand, limited new stock propel commercial rents
According to the latest report by Engel & Völkers Middle East, Dubai’s residential real estate sector saw transaction volumes not only outpace April 2024 but also exceed the monthly average of Q1 2025 by over 20 percent, highlighting strong underlying demand. The report noted that a softer U.S. dollar improved affordability for overseas buyers, further fuelling interest in both off-plan and secondary markets. International investors remain drawn to Dubai’s combination of lifestyle, high returns and relative value compared to other global cities.
Commercial real estate also echoed this momentum, supported by sustained population growth and an increasingly diversified economy. Core business districts such as Business Bay and Jumeirah Lake Towers saw strong absorption and limited new stock, pushing average office rents up more than 22 percent compared to April 2024.
In addition, the logistics and industrial sector is experiencing an unprecedented surge, with warehouse rents climbing nearly 41 percent year-on-year—a result of surging demand from e-commerce, manufacturing and trade sectors seeking well-located, high-specification space.
Top areas for commercial property
In the commercial segment, top-performing areas for real estate transaction activity in Dubai included Business Bay, Motor City, JLT and Barsha Heights—all offering strong fundamentals and strategic advantages for businesses across sectors.
The limited availability of Grade A office space, coupled with a steady influx of companies establishing regional headquarters in Dubai, is expected to keep upward pressure on rents through the second half of the year.
Meanwhile, warehouse operators continue to compete for space near trade corridors, free zones and last-mile delivery hubs, driving sustained rental growth across key industrial clusters.
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Top areas for residential real estate
Last month, residential real estate activity also remained broad-based, with both established and emerging communities in Dubai seeing sustained demand. Jumeirah Village Circle remained the city’s highest transacting area, appealing to end-users and investors drawn to its relative value.
Meanwhile, DAMAC Islands gained momentum, meeting the growing demand for affordable waterfront villas and townhouses. In addition, Business Bay and Dubai Marina remained among the top-performing apartment markets, combining strong lifestyle appeal with consistent investor interest.
While overall prices are still trending upward, Engel & Völkers noted early signs of stabilization in mature communities—an indicator of a more balanced, sustainable market. Strong fundamentals, investor-friendly policies and a transparent regulatory environment continue to support Dubai’s long-term growth trajectory.
As Dubai cements its position as a gateway between East and West and as a magnet for innovation and investment, its real estate sector is expected to continue growing through the remainder of 2025. With strong market fundamentals, resilient buyer sentiment and record levels of global interest, the city’s property market is on track to deliver another record-breaking year.
