Dubai’s real estate sector has begun 2025 with significant momentum, achieving a remarkable Dh35 billion in sales across 13,019 transactions in January. This figure represents a 5.0 percent month-over-month increase from December 2024, highlighting the continued resilience of the emirate’s property market and the confidence of investors in its offerings. The surge in sales indicates a vibrant property landscape as more buyers are attracted to Dubai’s dynamic real estate options.

A key trend observed in January’s performance is the strong preference for off-plan properties, which constituted a notable 56 percent of total sales. This enduring demand for newly launched projects points to a robust interest among buyers, a trend that industry experts expect to continue throughout the year. Major players in the off-plan sector, including Emaar, Sobha, Damac, and Danube, are capitalizing on this appetite for modern housing solutions.

Despite the impressive sales figures, the market did experience a slight price adjustment in January. The average price per square foot saw a minor decline of 0.57 percent month-over-month, settling at Dh1,484. This dip follows a peak in December 2024 and is viewed as a normal stabilization phase rather than a significant downturn. The average selling prices for various property types were recorded at Dh1.75 million for apartments, Dh2.67 million for townhouses, and Dh7.18 million for villas, showcasing the diverse options available to buyers in the market.

Betterhomes, a prominent property brokerage, reported a 56 percent increase in buyer leads from the previous month, demonstrating robust demand in all areas. The majority of these transactions were facilitated through mortgage financing, reflecting the increasing role of both investors and end-users in shaping the market dynamics.

Popular neighborhoods for apartment buyers included Jumeirah Lakes Towers (JLT), Business Bay, and Dubai Marina, while villa buyers were drawn to areas such as Dubailand, Arabian Ranches, and Damac Hills 2. This trend underscores a continued preference for established communities that offer both lifestyle amenities and solid investment potential.

Looking forward, the outlook for Dubai’s property market appears very promising. Betterhomes forecasts that developers are set to complete a record 72,365 residential units in 2025, representing a staggering 171 percent increase from the previous year. This surge in new supply reflects Dubai’s ongoing urban growth and the commitment of developers to meet the demands of a rapidly expanding population.

The off-plan sector thrived in 2024, with over 470 new projects launched, averaging more than one new project per day. Developers are increasingly prioritizing sustainable and affordable housing options to meet the diverse needs of the city’s expatriate community and align with global sustainability goals. In 2024, apartments accounted for 77 percent of completions, while townhouses and villas made up 17 percent and 6 percent, respectively, indicating a trend toward vertical living as urbanization continues to accelerate.

Key areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay are expected to remain focal points for both investors and end-users. Significant property handovers are anticipated in the first quarter of 2025, particularly in Sobha Hartland, Arjan, and JVC, which will contribute to the vibrant activity in the market.

Analysts predict that as the market stabilizes and absorbs an estimated 163,000 new housing units between 2025 and 2026, prices are likely to remain stable, fostering a balanced market environment. Although minor price fluctuations may occur, the strong market fundamentals—supported by economic growth and strategic investments—are expected to maintain investor confidence.

“While minor price fluctuations are expected, the market fundamentals remain strong,” said a senior analyst at Condor Developers, as reported by Khaleej Times. They said that economic growth and strategic investments in infrastructure would likely sustain investor confidence. They also noted, “The introduction of new units will not only satisfy buyer demand but will also enhance the diversity of offerings in the market, catering to various segments from affordable housing to luxury villas.”

Investor sentiment remains optimistic, bolstered by competitive financing options and favorable market conditions. The majority of transactions in January were driven by mortgage financing, indicating robust participation from both local and international buyers. Daniel Rogers, a leading property consultant, remarked, “Dubai’s real estate market continues to attract global investors due to its strategic location, strong economic fundamentals, and a favorable regulatory environment.”