Dubai Real Estate Market Sales performance-March, and Q1 2025
- Narcis Marian
- Apr 7
- 4 min read
Updated: Apr 14
Dubai's real estate market maintained its upward trajectory through March 2025, closing the first quarter with record-breaking sales figures and reinforcing its position as a global investment hub.
The market demonstrated robust growth across all segments, with luxury properties and off-plan developments driving unprecedented demand.
Q1 2025 Market Overview
The first quarter of 2025 set new benchmarks for Dubai's property sector:
Total Sales Volume: 44,909 transactions (Jan: 14,052 | Feb: 15,829 | Mar: 15,028)
Total Sales Value: AED 141.29 billion (Jan: AED 43.9B | Feb: AED 50.33B | Mar: AED 47.06B)
March 2025 Performance Highlights
March sustained the momentum from January and February, albeit with moderated growth rates: sales volume had a 9% year-over-year (YoY) increase and a 24.96% YoY surge in value compared to March 2024.
The luxury segment dominated headlines, with Palm Jumeirah and Dubai Hills Estate recording 20% quarterly price appreciation. High-net-worth investors drove a 62% YoY increase in homes valued above AED 10 million, including a AED 340 million villa sale on Palm Jumeirah.
Market Segment Analysis
Off-Plan Properties - The Growth engine
Off-plan developments accounted for 60.3% of Q1 sales volume (27,069 transactions) and 58.7% of total value (67.7 Bil AED). Key trends:
March 2025 Off-Plan Sales: 9,138 transactions (AED 22.81B)
YoY Value Growth: +22.05% compared to March 20241
Hotspots: Dubai Marina (28% of off-plan activity), Downtown Dubai (19%), and emerging areas like Dubai South (15%)
Notable March Sale: 116 Mil AED off-plan apartment in The Rings - 1 at Jumeirah Second
Developers capitalized on demand with strategic launches, including DAMAC’s partnership with ADIB for flexible off-plan financing solutions
Ready Properties - Premium Asset Appreciation
The ready market saw 17,840 transactions in Q1 (39.7% share), with values rising disproportionately:
Average Price/Sq.Ft: AED 1,621 (+4.5% QoQ)
Luxury Villa Premium: Beachfront properties traded at 35-40% premiums versus inland equivalents
Check out our research article on key considerations for buying off-plan vs ready properties in Dubai.
Key areas such as Dubai Land, 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 77 %
Villas and Townhouses 10 %
Commercial properties 3 %
Land plots 10 %
Market Trends and Insights
Luxury Market: Redefining Global Benchmarks
Dubai’s prime residential areas outperformed global counterparts:
Palm Jumeirah: 42 luxury transactions >AED 50 million in Q1
Emirates Hills: 19% quarterly price growth for villas
Jumeirah Bay Island: 100% occupancy rate for completed units
The city attracted 18% more ultra-high-net-worth buyers than Q1 2024, with Russian, Chinese, and British nationals comprising 63% of luxury purchasers
Supply-Demand Dynamics
Despite delivering 7,200 new units in Q1, Dubai faces a critical shortage:
Villa deficit: Only 19,700 new villas scheduled for 2025 completion vs. demand for 28,700 units
Apartment pipeline: 80.1% of 2025-2029 supply targets urban mid-market segments
Price impact: Villa prices surged 26% in 2024, with further 8-10% growth projected for 2025
Dubai provides a mix of advantages for foreign investors aiming to enter the property market, including:
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
Dubai Land Department and REACH, a globally recognized real estate technology accelerator backed by the National Association of REALTORS® (NAR) from USA, have signed a landmark partnership to launch REACH Middle East
Dubai Land Department will support the program by promoting it through its media channels, engaging with investors and potential partners, and providing regulatory guidance for startups.
In turn, REACH will manage and oversee the program’s operations, including selecting participating startups, providing mentorship and investment funding, and granting access to its global network of investors and Proptech experts.
Financial Times publication published a comprehensive title in March focusing on showcasing the success of Dubai as inspiring other cities around it, called: Dubai’s property market is thriving - and its neighbors are taking notes"
Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa and South Asia (MEASA) region, has launched a new technology solution that enables third parties to access data on its real estate landscape. For the first time, potential and existing investors can evaluate real estate opportunities within DIFC with an in-depth and real-time understanding of property values, rental yields, and transaction histories.
Key features of the DIFC data platform:
Real-time transactional data
Transparency in property valuations
Rental yield analysis
Integrated data on Keyper for DIFC property owners
Conclusion
Dubai’s real estate market enters Q2 2025 with unparalleled momentum, having delivered 141.29 Bil AED in Q1 sales. While supply constraints present challenges, they simultaneously create opportunities for strategic investors capitalizing on Dubai’s status as a safe-haven asset destination. With pro-growth policies and evolving buyer demographics, the market is poised to redefine global luxury real estate benchmarks through 2025.
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.
Source: Dubai Land Department; DXB Interact, Dubai Media Office
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