Dubai’s real estate market continues to thrive, with projections indicating the delivery of 73,000 homes in 2025. As property sales soar to an impressive $31 billion, the emirate solidifies its reputation as a lucrative investment destination for local and international buyers. The ongoing growth reflects a vibrant housing landscape amid evolving buyer preferences and market dynamics.
According to property consultant Cavendish Maxwell, Dubai is set to enhance its residential offerings considerably, with an anticipated addition of 73,000 units this year alone. The total number of housing units is expected to reach 300,000 by the end of 2028, showcasing a robust development pipeline in the city.
In the first quarter of 2025, the emirate witnessed 42,000 property transactions amounting to AED114.4 billion, despite a slight decline of 10 percent compared to the final quarter of 2024. However, this figure marks a remarkable 23 percent increase year-on-year, indicating a resilient property market even amid some fluctuations.
“Dubai’s property market is on track for a modest annual increase in terms of sales volumes and values, but there are indications that prices are beginning to stabilise. 2025 began with a brief dip in prices per sq ft, followed by a steady recovery. While prices are still on the up, the pace is showing signs of slowing down,” noted Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell. He emphasized, “With a weakened US dollar, strong rental returns and appealing yields, Dubai continues to attract local and international property investors.”
Market Dynamics and Trends
Off-plan sales have taken the lead in the market, commanding a significant 70 percent share with transactions totaling AED77.5 billion across 29,000 deals. This marks a substantial 32 percent increase compared to the first quarter of 2024, while secondary market sales also witnessed growth with 13,200 transactions—up by 6.6 percent year-on-year. The preference for off-plan properties indicates a strong buyer interest in upcoming developments.
Apartments have remained the most popular choice among buyers, accounting for 75 percent of all transactions, although there has been a gradual shift towards larger properties, including townhouses and villas. Townhouses represented nearly 17 percent of sales, while villas constituted a little over 7 percent.
Property prices across the market reached AED1,535 per square foot, reflecting a quarter-on-quarter price increase of 2.8 percent and an impressive year-on-year rise of nearly 16 percent. This upward trend in property prices continues to attract both investors and homebuyers looking for value in the Dubai real estate sector.
Luxury Market Insights
The luxury segment of Dubai’s real estate market has seen remarkable activity, with 590 transactions for properties priced at AED20 million or more—up from 480 in the same period last year. Notably, there were nearly 60 properties sold for AED50 million and above, illustrating the city’s appeal to high-net-worth individuals.
Arthur highlighted that off-plan property sales made up 67 percent of luxury transactions, with nearly one-third attributed to ultra-luxury sales. The emerging demand in this segment underscores the investment potential, driven by Dubai’s favorable tax policies, long-term residency incentives, and global connectivity.
Anticipating future growth, an influx of over 180,000 units is expected to hit the market in 2026 and 2027, when a surge in project completions is predicted, according to Cavendish Maxwell.
Regional Highlights and Completions
Jumeirah Village Circle emerged as a leader in project completions for the first quarter, with 4,330 units delivered. The area also saw the highest volume of apartment sales, with 3,330 transactions, comprising both off-plan and secondary market deals. The strong performance in this neighborhood reflects ongoing demand for residential options in Dubai.
Jumeirah Village Circle led project completions in the first quarter with 4,330 units delivered
Following Jumeirah Village Circle, Mohammed Bin Rashid City, Business Bay, Downtown Jebel Ali, and Rukan recorded notable completions, with 1,037, 743, 647, and 636 units delivered, respectively. For future supply, Jumeirah Village Circle leads with nearly 27,100 units expected to be completed by the end of 2028, followed by Business Bay and Azizi Venice.
Rental Market Performance
In the realm of residential rents, the market showcased a 14.4 percent increase compared to the first quarter of 2024, although quarterly growth slowed to just 1 percent. This was the lowest quarterly rise in two years, primarily attributed to the influx of newly delivered units and the introduction of the Dubai Smart Rental Index, which aims to regulate tenant expectations and adjust rental pricing.
Arthur further elaborated, saying, “With additional supply on the way, monitoring how rental trends evolve in response to increasing inventory and a shifting regulatory framework will be crucial.” At the end of March 2025, rental yields for apartments averaged 7.3 percent, with the highest yields found in Dubai Investments Park at 10.3 percent.
As Dubai’s real estate market continues to evolve, the steady growth in property sales and the delivery of new homes underscores the emirate’s lasting appeal as a prime investment locale. The trajectory toward 2025 and beyond promises to maintain Dubai’s status as a leading global real estate hub.