The Dubai real estate market is expected to see a gradual upward trend in 2025. Expect property prices to increase 5 to 10 percent. The growth is due to the expectations of more than 72,365 residential units scheduled to be delivered as well as an increase in investor interest in the real estate market for the long-term.
Springfield Properties’ most recent report revealed that the attractiveness of Dubai as an investment option is continuing to rise. Farooq Syed, Chief Executive Officer of Springfield Properties, commented:
“As we progress through 2025, the market is poised to offer further opportunities, driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns”
Dubai’s real estate market surged in Q1 2025, with 42,269 transactions worth a total of AED 114.08 billion (23.11% and 29.19% year-on-year increases in transactions and transaction values). Off-plan projects were instrumental in this regard, comprising 24,920 transactions (up from 20,006 from the same quarter last year).
Ready properties also experienced a boom. The value of all transactions for ready properties increased from AED 43.9 billion (2024) to AED 60.2 billion (2025), indicating that investors are showing increased confidence in completed developments.
The rental market expanded along with sales activity with average rents per square foot have increased by 14% to AED 81. Leading areas has included Dubai South with a 26.3% increase in rentals and Al Furjan with a 21.56% increase in rents.
fäm Properties reported, in the first quarter of 2025 the following growth in real estate:
In Q1 2025, the average price per square foot in Dubai was AED 1,563. This compares to a rate of:
The highest value of luxury sales was a luxury villa sold in Dubai Hills Estate for AED 140 million. The highest value of an apartment sold was also a unit in The Rings 1 project in Jumeirah Second for AED 116 million.
Statistics and analysis imply that Dubai’s real estate market is on a viable growth trajectory. The robust number of off-plan projects, rising per-square-foot values, and increasing rental rates all are based on the viability of the market and investment security. If the trend is sustainable, then in 2025, we could see one of the most profitable years (for real estate) in the UAE.
Source: https://www.propertynews.ae
