The Dubai real estate market continues to demonstrate remarkable resilience and growth, with February 2025 marking another milestone in the sector's upward trajectory.
As we analyze the latest data, it's clear that Dubai remains a prime destination for property investment, offering robust returns and a dynamic market landscape.
Sales in February
February 2025 has set new benchmarks for Dubai's property market with 32% volume growth and 37% value growth, representing a total value of over 50 Bil AED (or 13.7 Bil USD) compared to February 2024.
Market Segment Analysis
The off-plan market remains a significant driver of Dubai's real estate sector:
Off-plan properties have experienced an impressive 38% increase in volume and 60% increase in value compared to February 2024
This growth continues to be driven by attractive payment plans, innovative projects launch, and the promise of high returns on investment through re-sale or capital appreciation upon handover.
Ready properties continue to show strong performance as well:
This segment has seen a remarkable year-over-year growth of 31% in volume and 64% in value.
Check out our research article on key considerations for buying off-plan vs ready properties in Dubai.
Key areas such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills have been hotspots for off-plan investments.
The percentage share of overall transactions volume by asset class* in February:
Apartments 71 %
Villas and Townhouses 23 %
Commercial properties 3 %
Land plots 4 %
Market Trends and Insights
Sustained growth: the consistent month-on-month growth indicates strong investor confidence in Dubai's real estate market.
Premium Property Demand: Luxury properties continue to attract high-net-worth investors, with notable transactions including a AED 140 million villa in Hadaeq Sheikh Mohammed Bin Rashid and a AED 116 million apartment in The Rings - 1 at Jumeirah Second3.
Diverse Property Types: While apartments remain popular, there's a significant surge in villa sales, nearly doubling with a 99.7% increase to 3,679 units sold3.
Price Appreciation: The average price per square foot has increased by 3.4% to AED 1,551, reflecting the market's overall strength
Implications for Investors
Strong ROI potential: The consistent growth in both volume and value suggests favorable conditions for long-term investment.
Diversification opportunities: With growth across various property types, investors can diversify their portfolios within the Dubai market.
Market stability: The sustained performance over the past few years indicates a stable and maturing market, reducing investment risks.
Global appeal: Dubai's real estate market continues to attract international investors, enhancing its position as a global investment hub.
Dubai offers a blend of benefits, for foreign investors looking to enter the property market, such as:
Freehold property ownership and Zero property tax
Zero personal income tax or capital gains tax, or withholding tax
lowest corporate income tax rate of 9%
100% foreign business ownership
100% repatriation of capital investment and total profit earned
10-year investor Golden Visa
Investor-friendly policies providing foreign investment protection
One of the world’s top tourist centers
Latest news and initiatives
In collaboration with Dubai Internet City and supported by Dubai Land Department through its REES Initiative, at Step Dubai 2025 conference was introduced the Proptech track. This track explores AI-driven property solutions, blockchain-based transactions, and innovations influencing urban living and real estate investments.
Dubai Land Department announced in February that the emirate will host the world's largest global conference and exhibition for real estate technology ‘PropTech Connect 2026’. In this regard, His Excellency Eng. Marwan Ahmed bin Ghalita, Director General of the Dubai Land Department, confirmed that hosting this event in Dubai underscores a commitment to providing a comprehensive real estate ecosystem based on innovation and technology in line with Dubai’s Real Estate Sector Strategy 2033.
The latest Deloitte's Middle East Real Estate Predictions report for 2025, highlights several key trends in the emirate's property market:
Office Sector
Office rents rose 17% year-on-year, showing resilience despite global economic fluctuations
Retail Sector
Projected 6% increase in total retail sales between 2025 and 2027
Hospitality Sector
Average hotel occupancy rates reached 78% in 2024
Market Drivers
5% increase in population
Future Outlook
Moderate stabilization expected in some segments due to increased supply
Urban Development
Progress towards the Dubai 2040 Urban Master Plan
Conclusion
February 2025's performance reaffirms Dubai's status as a leading global real estate market. The impressive growth across all segments, from luxury villas to off-plan apartments, showcases the market's diversity and resilience. For investors, property owners, and market stakeholders, these trends signal continued opportunities in one of the world's most dynamic property markets.
As we move forward in 2025, all indicators point towards sustained growth and stability in Dubai's real estate sector, making it an opportune time for strategic investment and market participation.
Source: Dubai Land Department; DXB Interact, Dubai Media Office
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