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Dubai Residential Market Report Q1 2025

Key Takeaways:

  • Dubai recorded 42,200 residential sales in Q1 2025, up 23.1% year-on-year but down 10% quarter-on-quarter due to slower launches and seasonal effects. Off-plan sales dominated with a 68.9% market share, while secondary transactions showed continued resilience.
  • Total residential sales value rose 29.6% year-on-year to AED 114.4 billion. The off-plan segment accounted for AED 77.5 billion (+31.0%), while the secondary market contributed AED 36.9 billion (+26.6%).
  • Apartments comprised 76% of Q1 sales, though their market share declined slightly year-on-year. Villas (7.1%) and townhouses (16.9%) gained traction, reflecting demand from families and buyers seeking larger living spaces.
  • Average sales prices rose 2.8% QoQ and 15.8% YoY. Rents increased 1.0% QoQ and 14.4% YoY. Gross rental yields averaged 7.3% for apartments and 5.0% for villas.
  • Q1 saw 591 luxury transactions (AED 20M+), with continued demand from HNWIs driven by favourable tax policies, visa programmes, and international connectivity. The ultra-luxury segment (AED 50M+) also demonstrated stable performance despite limited supply.
  • Only 95 new projects (28,600 units) launched in Q1, down from previous quarters. Total new supply for 2025 is projected at 73,200 units, with 300,000 units targeted by 2028. Developers are focusing on inventory absorption and phased delivery.

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