Dubai’s real estate market has kicked off 2025 with a remarkable trajectory, achieving AED 142.7 billion (USD 38.85 billion) in total transaction value during Q1. This represents a robust 30.3% year-over-year increase, making it the second-highest performing quarter in the city’s history, trailing only slightly behind Q4 2024’s AED 147.2 billion record.
The quarter closed with 45,485 property transactions, reflecting a 22.8% rise from Q1 2024, according to verified sources. This growth further solidifies Dubai’s global reputation as a leading real estate investment hub.
Property Type Analysis: Villas, Apartments, Commercial, and Plots See Accelerated Growth
Dubai’s multi-sector real estate market has shown resilience across all segments, with especially notable activity in villa and land plot sales.
Plot Sales: Unprecedented 193.8% Growth
Land plot sales experienced a historic surge, jumping by 193.8% compared to Q1 2024. The total transaction volume hit AED 35.5 billion across 2,926 deals, as demand for bespoke developments and land banking escalated.
Villas: 43.1% Increase with AED 41.3 Billion in Sales
Villa sales continued their bullish trend, rising to AED 41.3 billion, up from Q1 2024 by a staggering 43.1%. Luxury, privacy, and lifestyle-driven purchases remain dominant forces, fueled by both end-users and high-net-worth investors.
Apartments: Volume and Value Climb Steadily
With 32,884 transactions, apartment sales hit AED 62.3 billion in Q1—an increase of 12.6% YoY. High-rise residences in well-connected zones such as Downtown, Business Bay, and Dubai Marina remained particularly popular among international investors and long-term residents.
Commercial Properties: 25.2% Uptick
The commercial segment also expanded, increasing by 25.2% YoY to reach AED 3.6 billion in total sales. This was spread across 1,212 transactions, reflecting heightened demand for office and retail space as Dubai’s business ecosystem grows.
Price Trends: AED 1,563 PSF Median Reflects Steady Appreciation
Dubai’s real estate values continue their ascent. The median price per square foot hit AED 1,563 in Q1 2025, marking a significant rise from AED 1,497 in Q1 2024.
Sales Distribution by Price Bracket: Strong Mid-Range and Luxury Demand
The distribution of Q1 2025 property sales reveals healthy demand across all price categories:
- AED 1M–2M: 31% (14,242 transactions)
- < AED 1M: 26%
- AED 2M–3M: 19%
- AED 3M–5M: 15%
- > AED 5M: 9% (3,939 transactions)
These figures indicate continued liquidity in the mid-income segments and sustained appetite for high-ticket luxury real estate.
Landmark Transactions: Dubai Hills and Jumeirah Record High-Value Deals
Among the standout individual deals:
- Most expensive villa: AED 140 million at Dubai Hills Estate
- Most expensive apartment: AED 116 million at Rings 1, Jumeirah
These elite properties highlight the premium segment’s vitality, with trophy assets in prime neighborhoods commanding top-tier valuations.
Conclusion: Dubai Remains a Premier Global Property Investment Destination
The Q1 2025 data reaffirms that Dubai’s real estate market is more robust than ever, outperforming historic benchmarks in both transaction value and volume. Strategic urban development, investor-friendly regulations, high demand for luxury and affordable units alike, and a secure, tax-efficient environment continue to attract both regional and global capital.
Investors seeking strong yields, asset security, and long-term appreciation are turning increasingly to Dubai as the definitive real estate destination in the Middle East and beyond. With its well-diversified portfolio across residential, commercial, and land assets—backed by world-class infrastructure and innovation—Dubai is poised for continued growth in the years ahead.Contact us
