Dubai's real estate market has started 2025 with impressive growth.
In January, the total value of transactions reached Dh44.4 billion (US$12.1 billion), an increase of 24.1 per cent over the same month in 2024.
A total of 14,236 transactions were completed in the first month of the new year, up 23.2 per cent year-on-year. The land market recorded the highest growth, with 811 plots sold during the month for a total value of Dh8.6 billion (US$2.3 billion). This is 151.9 per cent higher than in December 2024.
Villa sales increased by 89.6% to 3,117 properties valued at AED16.4 billion (US$4.5 billion). Flat sales increased by 7.1% to 9,945 transactions worth AED 18.2 billion (US$5 billion). Commercial property also strengthened its position with a total of 363 transactions worth AED 1.2 billion (US$327 million), up 17.9% on the previous year.
The record-breaker for villas in January 2025 was a luxury residence in Dubai Hills Estate, which sold for AED140 million (US$38.1 million). The most expensive apartment was sold on Palm Jumeirah for AED 57 million (US$ 15.5 million).
The average cost per square metre decreased by 4% to AED1,550 (US$422) in January 2025, but increased by 81.2% compared to January 2020 (previously AED855 (US$233)). It is worth noting that Dubai's real estate sector has continued to show resilience and steady growth over the past few years. This trend reinforces the emirate's position as one of the world's most attractive residential investment markets, boosting investor confidence and attracting capital from various regions.
Interestingly, January sales volume has increased by 822 per cent over the past five years. Specifically, the market dynamics are as follows:
- January 2020 - Dh4.8 billion (US$1.3 billion), 2,700 transactions
- January 2021 - AED 6.6 billion (USD 1.8 billion), 3,300 transactions
- January 2022 - AED 16.3 billion (USD 4.4 billion), 5,700 transactions
- January 2023 - AED 27.8 billion (USD 7.6 billion), 9,700 transactions
- January 2024 - AED 35.8 billion (USD 9.7 billion), 11,600 transactions
Structure of sales by property value:
- 9% of transactions - properties priced at AED 5 million (USD 1.4 million) and above
- 31% - Properties priced between AED 1-2 million (USD 272,000-545,000)
- 27% - Properties priced up to AED 1 million (USD 272,000)
- 20% - Properties priced between AED 2-3 million (USD 545,000-817,000)
- 14% - Properties priced between AED 3-5 million (USD 817,000-1.4 million)
Note that primary sales by developers accounted for 65% of transactions (by number) and 60% (by total value) in January 2025, while the secondary property market accounted for 35% and 40% respectively.