D
ubai's real estate market continued its upward trajectory in Q1 2025, achieving record-high sales volumes and values. Total residential property transactions jumped 23% year-on-year to over 42,000 deals, with total sales value increasing 29% to approximately AED 114 billion. Off-plan property dominated the market, accounting for 59% of all transactions.

    Premium neighborhoods drove the market's growth, with communities like Dubai Hills Estate and Palm Jumeirah leading the way in high-value transactions. The villa segment saw particularly strong growth, reflecting a surge in interest from families and investors in larger, luxury properties.

    Both local and international buyers remain active, attracted by Dubai's tax-free advantages, high rental yields, and availability of quality properties across all segments. Property prices reached new highs during the quarter, with the average residential sales price hitting AED 1,535 per square foot, up 16% compared to Q1 2024.

    Development activity is ramping up, with nearly 97,000 additional units expected for delivery by 2026. While this incoming supply will create more choices for buyers and investors in the medium term, inventory remains limited in key communities, contributing to elevated demand and upward price pressure.

    "Q1 2025 has been an exceptional quarter for Dubai real estate," said Louis Harding, Chief Executive Officer of Betterhomes. "The impressive growth in sales and values reflects both local end-user confidence and sustained international investment interest in Dubai." The report offers in-depth insights into community-level performance, demand patterns, and the evolving landscape of investment-grade housing across the city.

    To access the full report, visit www.bhomes.com.