Dubai’s real estate market is off to a strong start in 2025, with a significant increase in property sales compared to the previous year.
According to a recent market update released by fam Properties, total sales in January reached AED 44.4 billion, marking a 24.1 percent increase compared to the same month last year.
The number of transactions totaled 14,236, an increase of 23.2 percent compared to January 2024, as demand for residential and commercial properties remained strong.
Key highlights in January: In numbers
Total Sales: AED 44.4 billion (24.1% increase from January 2024)
Total Transactions: 14,236 (23.2% increase from January 2024)
Land Sales: AED 8.6 billion from 811 plots (151.9% month-on-month increase)
Villa Sales: AED 16.4 billion (89.6% increase in volume, 3,117 units sold)
Apartment Sales: AED 18.2 billion (7.1% increase in volume, 9,945 units sold)
Commercial Sales: AED 1.2 billion from 363 transactions (17.9% increase in volume)
Average Price per Square Foot: AED 1,550 (4% decrease from last year but an 81.2% increase over five years)
Strong performance across key segments
Land sales recorded the strongest growth in January, increasing by 151.9% month-on-month.
A total of 811 plots of land were sold for AED 8.6 billion, demonstrating strong investor interest in residential and commercial real estate.
Sales of villas were also particularly notable, totalling AED 16.4 billion, a sharp increase of 89.6% year-on-year, according to data from DXBinteract. Residential sales remained stable, with transaction value of AED 18.2 billion and volume up 7.1%.
Commercial property also saw a notable increase, with 363 transactions valued at AED 1.2 billion, and volume up 17.9%. The average price per square metre of commercial property fell slightly by 4%, but is still significantly higher than it was five years ago at 81.2%.
Investor confidence reflects long-term growth
Firas Al Musadi, CEO of fam Properties, highlighted that the January figures are further evidence of the ongoing strength and stability of Dubai’s real estate market, which has been seeing consistently strong growth. “This underlines Dubai’s status as a safe destination for real estate investment, strengthening investor confidence and attracting interest from local, regional and international markets,” Al Musadi said.
Rising market value over five years
The market’s growth curve over the past five years has been particularly remarkable. Property sales have increased 822 percent since then, compared to January 2020, when total sales were just AED 4.8 billion across 2,700 transactions. Since then, sales have grown steadily, reaching AED 35.8 billion in January 2024.
This upward trend reflects the long-term value of Dubai’s real estate sector as it continues to develop and expand as a global investment destination.
Notable high-end transactions
One of January’s biggest sales was a luxury villa in Dubai Hills Estate, which sold for AED 140 million, making it the most expensive property sold that month. The most expensive apartment was at Omniyat’s Ava at Palm Jumeirah, which sold for AED 57 million.
These transactions highlight the continued demand for luxury real estate in Dubai’s prime locations.
Off-plan and ready properties in high demand
Off-plan property sales outpaced resales in January. Off-plan apartments accounted for 65% of total sales volume, while off-plan villas were also in high demand, accounting for 60% of the value. Off-plan projects with the highest sales included Terra Heights, Verdes by Haven and Lasina, with total sales of AED 891.1 million, AED 296.4 million and AED 313.3 million respectively.
In the completed property segment, projects such as Remraam and Rukan were among the most popular choices.
Top performing areas in Dubai
In January 2025, several key areas of Dubai outperformed others in terms of transaction volumes:
- Wadi Al Safa 5: 1,400 units sold
- Jumeirah Village Circle: 982 units sold
- Dubai South: 942 units sold
- Al Yereis 1: 868 units sold
- Business Bay: 761 units sold
The trend indicates growing demand in both established and emerging areas of the city, and reflects broader changes in the market as investors and homebuyers seek opportunities in different locations. Dubai’s real estate market has had another strong start to the year, with significant growth in both quantity and value.
Continued growth in sales of land, villas and apartments, as well as Dubai’s strategic position as a global business hub, mean the market is expected to remain strong throughout 2025.
