Dubai real estate sales passed $31bn and average prices hit $735,000 in Q1 2025, according to Provident Estate’s newly released Property Market Report Q1 2025.
The property management firm said Dubai’s real estate market has posted remarkable gains in the first quarter of 2025, driven by a surge in investor confidence, robust off-plan activity, and continued strategic urban development
Key real estate highlights from Q1 2025 include:
- Transaction volume reached 42,273: A 50 per cent year-on-year increase, underlining heightened market activity and investor trust
- Sales value climbed to AED114.15bn ($31.1bn): Signalling strong capital inflows from both local and international buyers
- Average sale price increased to AED2.7m ($735,000): Reinforcing Dubai’s reputation as a maturing, high-value investment market
- Off-plan market dominated activity: With more than 25,000 apartment units and nearly 6,600 townhouse and villa units registered
- Luxury segment continued its upward trajectory: Villa prices increased 13 per cent compared to Q3 2024, fuelled by demand for larger, premium residences
- Price per sq ft for off-plan apartments hit AED1,926 ($524): A 28.6 per cent increase, with studio and 1-bedroom layouts leading demand
- Mortgage activity strengthened: More than 26,000 mortgages were processed across apartments, townhouses, and villas
Dubai real estate trends
Meanwhile, ready property market performance demand for affordable and mid-market homes remained steady. In the ready apartment segment, one-bedroom units were the top choice, with Jumeirah Village Circle (JVC) leading transactions, followed by Dubai Marina and Business Bay.
In the townhouse and villa sectors, DAMAC Lagoons, DAMAC Hills 2, and Dubai Hills Estate attracted family-oriented buyers seeking spacious, lifestyle-driven living environments.
Off-plan market developers’ flexible payment plans and attractive pricing continued to drive off-plan sales. Compact apartments in prime growth areas like JVC saw the highest registrations, while four-bedroom townhouse layouts gained popularity among families seeking long-term residences.
Premium off-plan villa communities such as The Valley and Palm Jebel Ali also recorded significant sales.
The most-searched communities in Q1 2025 revealed a clear preference for waterfront living and established communities:
- Dubai Marina remained the most searched for apartments
- JVC followed closely as a mid-market favourite
- Dubai Hills Estate, Palm Jumeirah, and Al Furjan ranked highest for villas and townhouses
Looking ahead, Dubai’s future growth is aligned with the 2040 Urban Master Plan and the city is on track to add more than 300,000 new residential units by 2028, ensuring a healthy supply pipeline. With 81,084 new units expected to be delivered in 2025 alone, Dubai’s real estate sector is strategically positioned to meet growing demand while preserving long-term investment value.
Communities such as JVC, Business Bay, and Al Furjan are set to lead future residential growth, offering attractive opportunities for investors and end-users alike.
