Dubai’s real estate sector has continued its upward trajectory so far this year, with market projections suggesting that property prices are expected to increase by 5 to 10 percent throughout 2025, supported by the anticipated delivery of approximately 72,365 residential units.
In its latest report, Springfield Properties noted that Dubai’s evolving landscape continues to attract investors seeking long-term value in a market characterized by its resilience and strategic growth initiatives.
“As we progress through 2025, the market is poised to offer further opportunities, driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns,” stated Farooq Syed, CEO of Springfield Properties.
Off-plan properties drive growth
The report also revealed that Dubai’s real estate market exhibited substantial growth in the first quarter of 2025. The sector recorded a total transaction value of AED114.08 billion, marking a 29.19 percent increase compared to the same period in 2024, with 42,269 transactions completed – a 23.11 percent year-on-year rise.
Off-plan properties have been a significant contributor to this growth, with 24,920 transactions in Q1 2025, up from 20,006 during the same period last year.
The ready market also saw notable gains, with transaction values increasing from AED43.9 billion in Q1 2024 to AED60.2 billion in Q1 2025.
“The sustained growth in Dubai’s real estate market reflects a strategic alignment with the emirate’s long-term vision for economic diversification and urban development. The significant uptick in both off-plan and ready property transactions underscores the confidence investors have in Dubai’s robust regulatory framework and its commitment to infrastructural excellence,” added Syed.
Rents per square foot rise by 14 percent
Dubai’s rental market has also mirrored this upward trend, with average rents per square foot rising by 14 percent, from AED71 to AED81. Notably, Dubai South and Al Furjan led this growth, posting increases of 26.3 percent and 21.56 percent, respectively.
Another report by fäm Properties revealed last week that the first quarter of 2025 saw significant year-on-year increases in all real estate sectors across Dubai, led by a 193.8 percent jump in plot sales worth AED35.5 billion from 2,926 transactions.
Data from DXBinteract shows that villa sales rose by 43.1 percent year-on-year to AED41.3 billion from 8,369 deals. Meanwhile, apartment sales rose by 12.6 percent to AED62.3 billion from 32,884 transactions. In addition, commercial sales rose by 25.2 percent to AED3.6 billion from 1,212 deals.
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Property prices trend up
fäm Properties also revealed that Dubai’s real estate sector continued to see a rise in property values last quarter, with the median price reaching AED1,563 per square foot, compared with the Q1 rates of AED889 in 2021, AED1,124 in 2022, AED1,283 in 2023 and AED1,497 last year.
Dubai’s Q1 property sales over the last five years have now risen to the current level from AED21 billion in 2020 to AED24.6 billion in 2021, AED54.6 billion in 2022, AED 89 billion in 2023 and AED109.5 billion last year. In addition, the number of sales transactions has surged from 9,800 transactions in 2020 to 11,600 in 2021, 20,200 in 2022, 31,100 in 2023, and 37,000 last year.
The most expensive individual property sold in Q1 was a luxury villa at Dubai Hills Estate, which fetched AED140 million. Meanwhile, the most expensive apartment sold during the quarter sold for AED116 million at The Rings 1 at Jumeirah Second.
