Dubai Real Estate Market Surges to Record Highs in Q1 2025

• Dubai’s Q1 2025 real estate market achieved historic highs with 45,474 transactions worth AED 142.7 billion, showing 22% volume growth and 30% value increase year-over-year.
• Off-plan sales dominated with 56% of transactions, while the ready property market reached record quarterly results with transactions valued at AED 87.5 billion.
• Abu Dhabi’s market showed strong growth in existing properties with a 75% value increase, driven by commercial deals and growing demand for move-in-ready homes.

Dubai’s real estate market has achieved unprecedented performance in the first quarter of 2025, cementing its position among the top-performing property markets globally.

The emirate recorded 45,474 transactions worth AED 142.7 billion, representing a 22 percent increase in volume and a 30 percent rise in value compared to the same period last year.

These figures mark the strongest first-quarter performance in more than a decade, according to the latest Q1 Insights from Property Finder.

The remarkable growth was driven by exceptional activity in both off-plan sales and existing property transactions across the emirate.

Off-plan sales dominated the market, representing 56 percent of all transactions. This segment saw 25,440 transactions, a 24 percent year-over-year increase, with values reaching AED 55.2 billion.

Meanwhile, the ready property market achieved its highest-ever quarterly results. It recorded 20,034 transactions worth AED 87.5 billion, marking a 21 percent rise in volume and a 34 percent jump in value.

Industry experts attribute this robust performance to strong demand from both end-users and investors. Many residents are increasingly shifting from renting to owning properties as rising rental prices make homeownership more attractive.

“This year remains strong, particularly in Dubai where investor confidence in long-term capital appreciation remains high,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.

In neighboring Abu Dhabi, the real estate market also showed positive trends. The capital registered approximately 2,496 transactions with a total value of AED 9.6 billion.

Abu Dhabi’s existing property segment experienced notable growth with a 9 percent increase in transaction volume and a remarkable 75 percent rise in value compared to Q1 2024.

This growth was primarily driven by large commercial deals and increasing demand for completed residential properties. Residential transactions made up 88 percent of the total existing market volume.

The UAE’s real estate ecosystem continues to attract global investors, supported by government initiatives such as the Dubai Real Estate Alliance by the Dubai Land Department (DLD).

Another innovative development is DLD’s partnership with the Virtual Assets Regulatory Authority to link Dubai’s real estate registry with property tokenization. This enables fractional ownership and allows a broader base of investors to enter the market.

Global factors are also playing a role in attracting international investors. According to Sleiman, “Global policy shifts and the depreciation of the dollar are creating heightened interest in UAE real estate investment opportunities.”

The record-breaking performance in Q1 2025 exceeds the average quarterly figures from 2024, with transaction volume surpassing last year’s average by 12 percent and value by 19 percent.

This demonstrates that Dubai’s real estate market maintains strong momentum heading into the rest of 2025, with no signs of slowing down.