The Dubai Residential Market Report – Q1 2025

Q1 2025 Market Insights

• The Dubai residential real estate market continues to demonstrate remarkable resilience and growth in Q1 2025. Transaction volumes remained robust, buoyed by sustained demand for both off-plan and ready properties. The quarter witnessed a 23% year-on-year increase in transaction volumes, reaching a staggering 42,274 sales transactions across both the secondary and off-plan markets.
  
  
• Notably, off-plan transactions accounted for 59% of all residential deals, a continuation of the trend observed in 2024, where off-plan sales captured a growing share of overall activity. While Q1 2025 delivered robust figures across both the secondary and off-plan markets, quarter-on-quarter data points to early signs of market stabilisation, with total transaction volumes declining by 10%. This moderation comes amid broader global economic uncertainty, including the potential imposition of new tariffs. As investor sentiment becomes more cautious, demand has shifted slightly away from speculative buying, reflecting a more measured and sustainable pace, one that may ultimately support the long-term health of the market.
  
  
• Quarter-on-quarter figures in the secondary market recorded an increase in transaction volume, underscoring a continued shift among tenants toward homeownership. This trend is further supported by a decline in overall rental contracts, suggesting that more residents are opting to purchase rather than renew leases amid rising rents and growing confidence in the city as a long-term home, with many residents putting permanent roots.
  
  
•  The AED 20 million–plus price segment in the secondary market recorded the largest increase in both year-on-year and quarter-on-quarter transaction activity, reinforcing Dubai as a magnet for global wealth.
  
  
• There remains a distinct difference between the villa/townhouse market and the apartment segment when it comes to price appreciation. Of the 20 villa and townhouse communities tracked in this report, 19 recorded price increases, with the average rise standing at 23%. Limited supply within this segment continues to drive prices upward.
  
  
• Average selling prices rose across all 11 apartment communities tracked, albeit at a more moderate pace, with an average increase of 10%.
  
  
• At Espace Real Estate, buyer activity continues to show that Dubai remains highly appealing to a global audience, with a diverse mix of buyer nationalities. While Western European countries continue to feature prominently, we are now observing increased geographic diversification, with growing interest from Eastern Europe. This shift underscores Dubai’s widening international appeal.
  
  
• To read more, you can click here to view our report.