Dubai Real Estate Market Grows 23% in Q1 2025 as Villa Sales Surge 65%
Monday, 28 April 2025
Dubai’s real estate sector saw robust growth in Q1 2025, with villa transactions leading a 23% rise in total sales. The market continues to attract end-users and mortgage-backed buyers amid stabilizing mortgage rates and rising prices.
Highlights:
- Dubai recorded 42,422 property sales transactions in Q1 2025, up 23% year-on-year.
- The total transaction value reached AED 114 billion, a 29% increase compared to Q1 2024.
- Apartment sales led in volume with 32,237 deals, rising 14% annually.
- Villa transactions surged by 65% year-on-year, totaling 10,185 deals.
- The value of villa sales jumped 56% to AED 53.4 billion.
- Off-plan transactions made up 59% of all deals, with a 25% annual increase to 24,942 sales.
- In the prime property market, off-plan transactions declined by 30%, while secondary market sales increased by 77%.
- Average property selling prices rose 28% across the board.
- Villas saw the highest price growth, with average prices increasing by 92%.
- Mortgage-backed purchases accounted for 57% of all Betterhomes transactions.
- Buyer enquiries rose 14% year-on-year and 51% compared to Q4 2024.
- Townhouses saw a 64% quarter-on-quarter increase in buyer interest.
- End-users made up 50% of buyers, a 22% rise from the previous quarter.
- Mortgage transactions increased by 21% year-on-year and 13% quarter-on-quarter.
- Tenant enquiries jumped 36% annually, led by growing family demand.
- Townhouse leasing enquiries rose 199% year-on-year, apartment leads rose 39%.
- Multi-year rental contracts are becoming more common as tenants plan longer stays.
- Luxury property sales over AED 15 million grew 44% annually, with secondary market sales up 77%.
- Popular areas included Palm Jumeirah, Emirates Living, and Downtown Dubai.
- Q1 2025 saw the completion of 7,848 new residential units, with nearly 97,000 units expected in 2026.
- Major off-plan launches continued in Zabeel, Dubai Creek Harbour, and Dubai South.
