Dubai Real Estate Market Hits Historic Record in Q1 2025; AED 142.7 Billion in Sales

Dubai’s real estate market has once again drawn interest from both local and international investors due to breaking yet another historical record. A new report by Property Finder indicated that 45,474 real estate transactions were recorded for a total of AED 142.7 billion in the first quarter of 2025, demonstrating a 22% increase in the number of transactions with a total increase of 30% in transaction value compared to the exact period last year.

Impressive Growth in the Ready Property Sector

Of all segments of Dubai’s real estate market, the ready segment has experienced the strongest growth, recording its best-ever quarterly performance with 20,034 transactions worth AED 87.5 billion.
Increasing rental prices in Dubai has caused many residents to pursue home ownership, indicating a slow, but still real, change from renting to owning.

Sustained Dominance of Off-Plan Projects

Off-plan developments continued to dominate the market. In Q1 2025, this segment saw 25,440 transactions with a value of AED 55.2 billion, a 24% increase year-over-year, and accounted for 56% of the overall market.

Remarkable Surge in Abu Dhabi Real Estate

In conjunction, the ready property sector also experienced an exceptional jump in the Abu Dhabi real estate market. Abu Dhabi saw 2,496 property transactions worth AED 9.6b, which was a 9% rise in transaction count and 75% rise in value from Q1 2023. Of significance is that the residential property value accounted for 60% of the total market value and 88% of all transactions in Abu Dhabi.

International factors driving the market boom

Sharif Suleiman, Chief Revenue Officer of Property Finder, expressed that the UAE real estate market has been buoyed by increased investor confidence, a deteriorating US dollar, and shifts in the global political landscape. He also highlighted initiatives like the Dubai Real Estate Alliance and collaboration between the Dubai Land Department (DLD) with the Virtual Assets Regulatory Authority (VARA) in creating a more habitable and intuitive investment ecosystem.

Conclusion

With such records set at the beginning of the year, it can be expected that the Dubai real estate market will experience one of its most dynamic periods in 2025. The growth in demand for buying apartments in Dubai and the increase in transactions in the ready-to-hand segment indicate the high attractiveness of this market for people looking to invest in the Emirates.

Source: https://www.propertynews.ae