Dubai’s real estate market experienced significant growth in January 2025, particularly in the off-plan segment, according to the latest data from Property Finder. The market recorded approximately 14,238 transactions, representing a notable 23 percent increase compared to January 2024. The total value of these transactions reached Dh44.4 billion, reflecting a 24 percent rise year-on-year.

Property seekers displayed specific preferences regarding housing types. Among those looking to invest or purchase properties, 31 percent sought one-bedroom units, and 37 percent preferred two-bedroom apartments. Studio apartments attracted 15 percent of potential buyers. In the villa and townhouse segment, 37 percent expressed interest in three-bedroom units, while a significant 50 percent favored four-bedroom or larger options.

The most popular locations for apartment purchases included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah. Villa buyers showed strong interest in Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan, and Damac Hills 2. Rental preferences also highlighted market trends, with 59 percent of tenants looking for furnished properties, while 39 percent opted for unfurnished ones.

In the villa market, 52 percent of tenants sought furnished units, compared to 48 percent looking for unfurnished options. The top areas for rental searches for apartments included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira, while Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Al Furjan were popular for villas.

Examining market dynamics between off-plan and existing segments, the existing market saw a significant uptick with approximately 6,918 transactions recorded—up from 5,185 in January 2024. This represents a 32 percent increase in transaction volume and a 41 percent increase in value. Notably, Palm Jebel Ali achieved Dh2.1 billion in transaction value across 95 deals, while Al Yelayiss 1 saw a significant surge, reaching Dh1.7 billion, up from just Dh102 million last year.

Conversely, the off-plan market experienced a slight decline of 1.3 percent in transaction value, totaling Dh15.1 billion, down from Dh15.3 billion in January 2024. This marked the first decline in off-plan transaction value in three years. However, the number of off-plan transactions rose by about 15 percent, making up 52 percent of total transactions in January 2025.

Cherif Sleiman, chief revenue officer at Property Finder, remarked that January 2025 represented significant milestones in the UAE’s real estate sector, showcasing resilient momentum. He stated, “Recent initiatives, including the Dubai Land Department’s expansion of freehold ownership, are reshaping the landscape by unlocking new opportunities for investors and homeowners.”

Sleiman further noted that the Central Bank of the UAE’s focus on responsible lending is contributing to a more stable financial environment, reinforcing long-term market growth. These developments are in line with the Dubai Real Estate Sector Strategy 2033, signaling a transformative phase for the industry.

ValuStrat projects that Dubai’s residential market will continue its upward trend in 2025, albeit at a slower pace. Economic growth, rising demand, and positive sentiment are contributing factors, with capital values expected to increase by 5-10 percent throughout the year.

Additionally, Engel & Völkers Middle East reported that off-plan transactions accounted for 63 percent of all property sales in 2024, up from 54 percent in 2023. This trend indicates a growing demand for new developments, driven by competitive pricing and attractive payment plans. Total residential sales transactions surged by 40.3 percent to 170,992 units in 2024, reflecting sustained investor confidence in Dubai’s property market.

Luxury properties remain a focus area, with Palm Jumeirah, Downtown Dubai, and Dubai Marina attracting high-net-worth individuals. Emerging developments like Palm Jebel Ali and The Oasis are generating new interest in off-plan projects, appealing to buyers seeking exclusivity and long-term capital appreciation.

Daniel Hadi, CEO of Engel & Völkers Middle East, emphasized the shift in buyer preferences, stating, “The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors looking for properties that offer long-term value.” He added that government-led initiatives, such as long-term visas and free zone expansions, further enhance Dubai’s appeal as a premier real estate investment hub.