Dubai’s real estate sector has experienced robust growth in the first quarter of 2025, largely fueled by off-plan property transactions. Data from Betterhomes indicates a remarkable 35.5 percent increase in real estate transactions, reinforcing Dubai’s status as a prime investment destination.

Off-plan properties played a crucial role in this growth, with 24 920 transactions recorded in Q1 2025, a notable increase from 20,006 during the same period last year, according to Springfield Properties. The participation of various investor demographics has also expanded, with Indian investors raising their share from 19 percent in early 2024 to 28 percent in early 2025.

Notably, Mexican investors, who were previously absent from the market, accounted for 11 percent of transactions in early 2025, reflecting rising interest from Latin America. Additionally, Pakistani investors saw a slight increase, moving from 10 percent to 11 percent of transactions, while new entrants from Jordan, Canada, Lebanon, Morocco, Egypt, Austria, the UK, Albania, and Italy each represented 6 percent of the market, showcasing a broadening international appeal.

The demand for off-plan properties is attributed to their competitive pricing, flexible payment options, and potential for significant capital appreciation. Iconic developments, including The Valley by Emaar, Dubai Creek Harbour, and Sobha One, remain highly sought after, with certain phases selling out quickly upon launch.

According to Springfield’s data, Dubai’s real estate sector achieved a total transaction value of Dh114.08 billion in the first quarter, marking a 29.19 percent increase compared to the same period in 2024. This period saw 42 269 transactions completed, reflecting a 23.11 percent rise year-on-year.

The ready property market also saw significant gains, with transaction values climbing from Dh43.9 billion in Q1 2024 to Dh60.2 billion in Q1 2025. Alongside this, the rental market mirrored the upward trend, with average rents per square foot increasing by 14 percent, from Dh71 to Dh81. Areas like Dubai South and Al Furjan led this growth, posting increases of 26.37 percent and 21.56 percent, respectively.

Farooq Syed, CEO of Springfield Properties, stated that the ongoing growth in Dubai’s real estate market reflects a strategic alignment with the emirate’s long-term vision for economic diversification and urban development. He noted that the significant increase in both off-plan and ready property transactions illustrates the confidence investors have in Dubai’s strong regulatory framework and commitment to infrastructural excellence. As 2025 progresses, the market is expected to present further opportunities driven by innovative developments and policies attracting both regional and international investors seeking stable and lucrative returns.

Dubai’s investor-friendly policies, strategic location, and world-class infrastructure remain attractive to global buyers. Betterhomes highlighted that the off-plan market continues to be a promising avenue for investors seeking long-term gains in a dynamic and thriving real estate environment.