Dubai property is booming: What every investor should know

Dubai’s real estate market continues to thrive, demonstrating remarkable resilience and growth in the first quarter of 2025.

The Betterhomes Q1 market report reveals that total sales transactions surged by 23 per cent year-on-year, with the total value of sales increasing by an impressive 29 per cent to Dhs114bn.

Read-Dubai: Off-plan sales dominate 63% of residential sales in 2024

While apartments remained a significant segment, the villa market emerged as a standout performer, with transactions soaring by 65 per cent and value up by 56 per cent. Off-plan sales continue to drive market activity, accounting for 59 per cent of all transactions. However, a notable shift is emerging, with rising interest in completed, ready-to-occupy luxury units.

These are just some of the key insights from the comprehensive Betterhomes Q1 2025 Dubai Real Estate Market Report.

Meanwhile, Q1 insights from Property Finder also reveal a bullish UAE real estate market, with both Dubai and Abu Dhabi experiencing a robust start to the year—albeit for different reasons.

Dubai achieving historic highs

Dubai recorded historic highs in both the number and value of transactions, marking its strongest first-quarter performance in over a decade. The city registered 45,474 transactions worth Dhs142.7bn, reflecting a 22 per cent increase in volume and a 30 per cent increase in value compared to the same period in 2024. This surge was primarily driven by record activity in off-plan sales and existing property transactions.

Off-plan sales

Off-plan sales accounted for 56 per cent of all transactions in Dubai, rising to 25,440 transactions—a 24 per cent year-on-year increase—with a value of Dhs55.2bn, up from Dhs44.5bn in Q1 2024. The ready market also delivered a breakout performance, with 20,034 transactions worth Dhs87.5bn, marking a 21 per cent increase in volume and a 34 per cent surge in value. These are the highest-ever quarterly results for this segment.

Dubai’s numbers reflect sustained demand from both end-users and investors, likely supported by a growing shift from renting to owning, as rising rental prices increasingly encourage residents to explore homeownership.

Meanwhile, Abu Dhabi saw a surge in the ready property market, posting a 9 per cent increase in volume and a 75 per cent rise in value, driven by large commercial deals and growing demand for completed homes. Residential-ready transactions rose by 5 per cent in volume and 33 per cent in value, signalling buyer preference for move-in-ready options.

Dubai property market: Key insights

Off-plan market

Dubai

• Dubai’s real estate market remains one of the top-performing globally, with Q1 2025 witnessing a significant surge in total sales transactions. The 45,474 transactions marked a 22 per cent year-on-year increase, with total value rising by 30 per cent to Dhs142.7bn—the highest volume for any first quarter on record.
• In Q1 2025, Dubai’s off-plan market recorded its strongest first-quarter performance in a decade, accounting for 56 per cent of the total transaction volume. Off-plan transactions reached 25,440, up from 20,557 in Q1 2024—a 24 per cent year-on-year increase—driven by growing long-term confidence among medium- and long-term investors.
• The value of the off-plan segment also saw robust growth, with a 24 per cent year-on-year increase to Dhs55.2bn, compared to Dhs44.5bn in Q1 2024. This represented 39 per cent of the total transaction value in Q1 2025, underlining the ongoing appeal of Dubai’s future development pipeline.

Abu Dhabi

• Abu Dhabi’s real estate market registered approximately 2,496 transactions in Q1 2025, with a total value of Dhs9.6bn.
• The off-plan market recorded approximately 1,332 sales transactions, valued at Dhs4.9bn.

Existing/ready property market

Dubai

• A new quarterly record was set, surpassing the average quarterly volume and value of 2024. Volume exceeded the 2024 average by 12 per cent, and value rose by 19 per cent—affirming the market’s ongoing momentum into 2025.
• Existing property transactions rose by 21 per cent year-on-year, with approximately 20,034 transactions valued at Dhs87.5bn. This marks a 34 per cent increase in value compared to Dhs65.3bn in Q1 2024.
• Ready property transactions made up nearly half (44 per cent) of the total sales transaction volume.

Abu Dhabi

• The existing/ready market in Abu Dhabi recorded 1,164 transactions in Q1 2025, representing around 47 per cent of total transactions—up from 1,066 transactions in Q1 2024.
• These transactions contributed to 49 per cent of the total transaction value, reflecting a 9 per cent increase in volume and a substantial 75 per cent rise in value compared to the same period last year.
• Residential transactions accounted for 88 per cent of the total existing market volume and 60 per cent of the total value in Q1 2025. Compared to Q1 2024, residential-ready transactions increased by 5 per cent in volume and 33 per cent in value, indicating sustained demand for completed properties.