Dubai's Real Estate Sector Bucks Global Downtrend, Notches AED 114 Billion in First Quarter Transactions
In the first quarter of 2025, Dubai's real estate market demonstrated remarkable resilience and growth, as revealed in the Betterhomes Q1 2025 Dubai Real Estate Market Report. The market witnessed a 23% year-on-year increase in total sales transactions, totalling AED 114 billion, a 29% rise.
The report offers a wealth of insights into the key trends shaping Dubai's real estate sector. One of the most notable shifts is the increased focus on completed, ready-to-occupy luxury units. This shift is driven by the robust performance of Dubai's luxury real estate, which is outpacing major global cities like London and Los Angeles.
The branded residence segment has experienced a 160% growth over the past decade, with projections of 140 branded projects delivering by 2031. In 2024 alone, branded home sales generated AED 60 billion, a 43% annual increase, with buyers paying 40-60% premiums for lifestyle and brand value.
Dubai's population growth also plays a significant role in the market's momentum. The city's population climbed to 3.93 million by April 2025, a 9.2% increase from the previous year, fuelling demand across ownership and rental markets.
Luxury villas and townhouses have emerged as star performers, with transactions soaring by 65% and value up by 56%. Notable record-breaking transactions include a villa sale for AED 72 million ($20 million) in Al Barari.
The report also highlights the preference for off-plan properties, with off-plan sales accounting for 59% of all transactions in Q1 2025. However, the secondary market, particularly in established areas like Downtown Dubai and Dubai Hills Estate, shows strong buyer interest in completed and title-ready units.
The exit of Dubai from the FATF “grey list” has further enhanced its attractiveness as a secure investment destination, bolstering investor confidence and fuelling real estate investments.
The report provides valuable insights into the leasing market, rental price trends, and tenant behaviour in Dubai. It also offers an overview of upcoming off-plan launches and developer activity in the market.
For those looking to invest or make informed decisions in Dubai's real estate market, the Betterhomes Q1 2025 Dubai Real Estate Market Report serves as an indispensable tool. The comprehensive resource offers an in-depth analysis of Dubai's luxury property sector, trends in buyer demand, including the rise of end-users and mortgage-backed transactions, and more.
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- The increase in buyer demand for luxury real estate in Dubai, especially luxury units that are completed and ready-to-occupy, is partially driven by its robust performance outpacing major cities like London and Los Angeles, making it an attractive sector for investing.
- With Dubai's real estate market showing resilience and growth, and the exit from the FATF “grey list” enhancing its attractiveness as a secure investment destination, the Betterhomes Q1 2025 Dubai Real Estate Market Report provides valuable insights for those looking to invest or make informed decisions in Dubai's real estate market, particularly in the finance and investing sectors.
