Dubai’s real estate sector has been on an upward trend this year, with market predictions indicating that property prices will rise by 5 to 10% by 2025, aided by the scheduled delivery of around 72,365 residential units.
According to Springfield Properties’ most recent research, Dubai’s dynamic landscape continues to attract investors looking for long-term value in a market known for its durability and strategic growth efforts.
“As we progress through 2025, the market is poised to offer further opportunities, driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns,” stated Farooq Syed, CEO of Springfield Properties.
Off-plan properties drive growth
The survey also stated that Dubai’s real estate sector had significant growth in the first quarter of 2025. The industry saw a total transaction value of AED114.08 billion, a 29.19 percent increase over the same time in 2024, with 42,269 transactions completed, a 23.11 percent year-on-year increase.
Off-plan properties contributed significantly to this growth, with 24,920 transactions in Q1 2025, up from 20,006 in the same time last year.
The ready market also experienced significant growth, with transaction values rising from AED43.9 billion in Q1 2024 to AED60.2 billion in Q1 2025.
“The sustained growth in Dubai’s real estate market reflects a strategic alignment with the emirate’s long-term vision for economic diversification and urban development. The significant uptick in both off-plan and ready property transactions underscores the confidence investors have in Dubai’s robust regulatory framework and its commitment to infrastructural excellence,” added Syed.
Rents per square foot rise by 14 percent
Dubai’s rental market has followed suit, with average rates per square foot increasing by 14 percent, from AED71 to AED81. Notably, Dubai South and Al Furjan lead this growth, with gains of 26.3% and 21.56 percent, respectively.
Another research by fäm Properties stated last week that the first quarter of 2025 had large year-on-year growth in all real estate sectors in Dubai, topped by a 193.8 percent increase in plot sales worth AED35.5 billion from 2,926 transactions.
DXBinteract data reveal that villa sales increased by 43.1 percent year on year to AED41.3 billion from 8,369 deals. Meanwhile, flat sales increased by 12.6% to AED62.3 billion from 32,884 transactions. In addition, commercial sales increased by 25.2% to AED3.6 billion from 1,212 transactions.
Property prices trend up
fäm Properties also stated that Dubai’s real estate industry saw a surge in property values last quarter, with the median price reaching AED1,563 per square foot, compared to Q1 rates of AED889 in 2021, AED1,124 in 2022, AED1,283 in 2023, and AED1,497 last year.
Over the last five years, Dubai’s first-quarter property sales have increased from AED21 billion in 2020 to AED24.6 billion in 2021, AED54.6 billion in 2022, AED89 billion in 2023, and AED109.5 billion last year. In addition, sales transactions increased from 9,800 in 2020 to 11,600 in 2021, 20,200 in 2022, 31,100 in 2023, and 37,000 last year.
The most expensive individual property sold in Q1 was a luxurious villa in Dubai Hills Estate, which cost AED140 million. Meanwhile, the most expensive flat sold during the quarter was The Rings 1 at Jumeirah Second, which cost AED116 million.
