The real estate market has started the year on a strong note in Dubai, with January 2025 showcasing impressive growth in property sales.
It was recently announced the Dubai real estate market's remarkable performance in 2024 which exceeded even the most optimistic predictions from the previous year:
𝟕𝟔𝟏 𝐁𝐢𝐥 𝐀𝐄𝐃 (𝟐𝟎𝟕 𝐁𝐢𝐥 𝐔𝐒𝐃) total value of real estate transactions
𝟓𝟐𝟔 𝐁𝐢𝐥 𝐀𝐄𝐃 (𝟏𝟒𝟑 𝐁𝐢𝐥 𝐔𝐒𝐃) total sales transactions value
𝟐𝟕 % growth in sales transactions value vs 2023
𝟓𝟓 % growth in new investors
Sales in January
January 2025 witnessed a record 14k of property transactions, with a total value of 44 Bil AED (close to 12 Bil USD).
This marks a 25 % increase compared to the same month last year, in both volume and value, indicating robust investor confidence and market stability.
Dubai real estate market trends
Off-plan sales have seen a remarkable 19 % surge in transactions values, accounting for 61% of the total transactions.
This growth is driven by attractive payment plans, innovative projects launches, and the promise of high returns on investment through re-sale or capital appreciation upon handover.
The value for ready properties transactions, has seen a 43% increase compared to January last year, but is -20% lower than previous month in December.
Check out our research 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 January:
Apartments 70 %
Villas and Townhouses 22 %
Commercial properties 3 %
Land plots 6 %
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
The biggest news of January that made headlines around media, was the announcement from Dubai Land Department that enables private property owners on Sheikh Zayed Road and Al Jaddaf to convert to freehold ownership
This initiative is set to drive significant growth in Dubai’s real estate sector, to attract new investments, and enhance the market value of properties in these areas. This move underscores Dubai's commitment to fostering a dynamic and investor-friendly real estate market. Property owners can confirm their eligibility for the conversion through the Dubai REST smart app.
A recent report on 2025 outlook from Emirates NBD Research, note Dubai GDP growth forecast at 3.7%, up from an estimated 3.2% in 2024. On another note, refereeing to last year performance in the property sector, it was highlighted that units priced between 1Mil AED to 2 Mil AED saw robust growth with a 71% YoY increase in demand.
UAE participated in World Economic Forum 'Davos 2025' in January, with delegation of over 100 government officials, private sector leaders. The UAE was participating in the WEF with a dedicated pavilion under the theme "Nothing is Impossible," reflecting the importance the nation places on this prestigious global event.
Conclusion
January 2025 has set a positive tone for Dubai's real estate market, with record-breaking property sales and strong investor confidence. The city's dynamic market continues to attract a wide range of stakeholders, reinforcing Dubai's position as a premier global real estate destination.
The high transaction volumes and rising property values suggest a favorable environment for both short-term gains and long-term investments. Investors can leverage the growing off-plan market, while property owners can benefit from the appreciation in property values.
Source: Dubai Land Department; DXB Interact, Dubai Media Office
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