After a record-breaking 2024, Dubai’s real estate sector witnessed continued demand and strong growth in January 2025, achieving a 23 percent annual increase in transactions to 14,238. The sector also witnessed a 24 percent increase in transaction value to AED44.4 billion ($12.09 billion).
Maintaining its appeal among investors globally, Dubai’s real estate sector achieved record-breaking success in 2024, setting new milestones with an unprecedented total of 180,900 transactions valued at $142.1 billion.
Popular areas for property ownership in January
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.
“Recent initiatives, such as Dubai Land Department’s expansion of freehold ownership, are reshaping the landscape by unlocking new opportunities for investors and homeowners. At the same time, the Central Bank of the UAE’s focus on responsible lending will foster a more stable financial environment, reinforcing long-term market growth,” stated Cherif Sleiman, chief revenue officer at Property Finder.
Off-plan market accounts for 52 percent of total transactions
In January 2025, the existing market in Dubai recorded approximately 6,918 real estate transactions, up from 5,185 transactions in January 2024, reflecting a 32 percent increase in volume and a 41 percent increase in value.
In terms of value, Palm Jebel Ali recorded AED2.1 billion in 95 deals, while Al Yelayiss 1 saw a remarkable jump, reaching AED 1.7 billion, up from AED102 million.
However, the off-plan market experienced a slight decline of 1.3 percent in transaction value, recording AED15.1 billion in January. This minor dip marks the first decline in off-plan transaction value in three years. Despite the decline in value, the number of off-plan transactions continued to rise, increasing by around 15 percent and accounting for 52 percent of total transactions in January 2025.
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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.