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

The ready segment of Dubai’s real estate market has grown at the fastest rate of any segment, with 20,034 transactions totaling AED 87.5 billion in the most recent quarter. Many Dubai residents are pursuing home ownership as a result of rising rental costs, suggesting a gradual but noticeable shift from renting to owning.

Sustained Dominance of Off-Plan Projects

The market was still dominated by off-plan developments. This segment accounted for 56% of the total market in Q1 2025, with 25,440 transactions totaling AED 55.2 billion, a 24% year-over-year increase.

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

Increased investor confidence, a declining US dollar and changes in the world political scene have all helped the UAE real estate market, according to Sharif Suleiman, Chief Revenue Officer of Property Finder. In order to create a more livable and user-friendly investment ecosystem, he also highlighted initiatives such as the Dubai Real Estate Alliance and the partnership between the Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA).

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