Dubai’s residential real estate market is still growing and stable, despite the fact that many real estate markets around the world are struggling with economic pressures and dwindling demand. By drawing in foreign investors and growing its development projects, the emirate has been able to defy global trends and open the door to a more promising future in housing.
By the end of 2025, approximately 73,000 new residential units are anticipated to be delivered in Dubai, per a report by the consulting firm Cavendish Maxwell. Additionally, the emirate has set a lofty goal to add 300,000 new units by the end of 2028, which would be one of the biggest residential expansions in Dubai’s history.
The first quarter of this year saw 42,000 real estate transactions valued at AED 114.4 billion, representing a 23% increase year over year, despite a slight 10% decline in transaction volumes when compared to Q4 2024.
In the same time frame, 95 new projects were introduced in Dubai, bringing a total of 29,000 residential units to the market. 9,300 of these have been finished. Eighty percent of these residences were apartments, with townhouses and villas making up the remaining portion. With 3,330 recorded sales and 4,330 new apartments introduced, Jumeirah Village Circle (JVC) dominated the market.
Off-plan (under-construction) projects accounted for a sizable percentage of the transactions. In Q1:
These numbers highlight how local and international investors have a high demand for Off-plan Properties in Dubai, which keeps the market vibrant. With 13,200 transactions and an annual growth rate of 6.6%, the secondary market, meanwhile, continued to be robust.
Townhouses and villas now account for 17% and 7% of all purchases, respectively, as households seek out larger living areas. The luxury market also saw a sharp increase, with 590 sales surpassing AED 20 million, compared to 480 the previous year. It’s interesting to note that 67% of these opulent residences were sold before the sale, demonstrating the trust that affluent purchasers have in off-plan developments. The average price per square foot increased by 16% annually to AED 1,535 by March 2025.
Even though rents increased 14.4% annually, quarterly growth slowed to just 1%, the lowest level in two years. This pattern is ascribed to:
For apartments, the average rental yield is 7.3%, while for villas and townhouses, it is 5%. Apartment yields can be as high as 10.3% in some neighborhoods, such as Downtown Jebel Ali, International City, and Dubai Investments Park.
In May 2025, real estate sales topped AED 66.8 billion, a 50% rise over May 2024, according to fäm Properties. In Dubai’s history, this represents the second-highest monthly transaction volume. In contrast, transactions totaling just AED 2.3 billion were documented in May 2020.
Market participants are still hopeful despite some analysts’ worries about possible price corrections of up to 15%. The CEO of fäm Properties, Firas Al Msaddi, claims that the market is not in a downturn but rather is moving into a phase of more controlled and logical growth. Over 360,000 residential units are planned for the next five years, putting Dubai’s real estate market on course for balanced, professional, and sustainable growth.
In conclusion, by utilizing a development-driven perspective, drawing in foreign investors, and carrying out significant construction plans, Dubai’s residential real estate market has deviated from worldwide trends. This market is one of the most vibrant real estate investment hubs in the area because of the consistent increase in transactions, varied supply, high rental yields, and investor confidence in luxury and off-plan projects. With more than 300,000 residential units scheduled for completion by 2028, Dubai is well-positioned to satisfy both domestic and international demand for real estate.
Source: https://www.propertynews.ae
