UAE: Dubai’s real estate market has achieved a remarkable milestone in the first quarter of 2025, recording total sales of AED142.7 billion. This figure is the second highest quarterly sales on record, reflecting a strong performance despite being slightly lower than the record AED147.2 billion achieved in Q4 2024.
The report, published by fäm Properties, shows that this performance represents a 30.3% year-on-year increase in sales value and a 22.8% rise in transaction volume, totaling 45,485 deals. The numbers indicate that Dubai's real estate market continues to exhibit strong momentum as it heads into the new year.
The significant growth in sales occurred across all real estate sectors in Dubai during Q1 2025. Notably, plot sales saw a dramatic increase of 193.8%, totaling AED35.5 billion from 2,926 transactions. Villa sales increased by 43.1%, reaching AED41.3 billion from 8,369 deals.
Apartment sales rose by 12.6% to AED62.3 billion from 32,884 transactions, while commercial sales grew by 25.2%, reaching AED3.6 billion from 1,212 deals. Alongside these growth figures, property values also saw an increase, with the Q1 median price rising to AED1,563 per square foot from AED1,497 last year, highlighting the continued appreciation of Dubai’s real estate market.
Additional details reveal that the first sales from developers have significantly outpaced re-sales in the secondary market, with a volume split of 65% to 35%. Property prices were distributed across different segments, with properties priced between AED1-2 million accounting for 31% of sales. Other price ranges include 26% for properties below AED1 million, 19% for those priced between AED2-3 million, 15% for properties between AED3-5 million, and 9% for those exceeding AED5 million. This distribution demonstrates the ongoing demand across various price brackets, with both affordable and luxury properties seeing strong sales.
The top-performing areas in terms of transaction volume during Q1 2025 were Jumeirah Village Circle, Wadi Al Safa, Business Bay, Dubai South, and Dubai Marina. These areas have seen significant sales values, with notable high-value transactions, including a luxury villa at Dubai Hills Estate selling for AED140 million and an apartment at The Rings 1 in Jumeirah Second going for AED116 million. These transactions indicate the growing appeal of Dubai’s luxury real estate market, which continues to attract both local and global investors.
This strong performance is part of a broader trend of sustained growth in Dubai’s real estate market. Sales values have risen significantly from AED21 billion in 2020 to AED109.5 billion in 2024, reinforcing Dubai’s position as a premier real estate investment hub. Despite regional economic dynamics and shifting buyer preferences, the market’s resilience continues to make Dubai an attractive destination for real estate investment, both for local buyers and international investors seeking opportunities in a thriving market.
