The first quarter of 2025 was a period of unprecedented growth in Dubai's property market. Transaction volume reached 45,474 transactions totalling AED 142.7 billion, up 22 per cent and 30 per cent year-on-year. These figures are cited by Property Finder, the UAE's leading property platform.
Growth In All Segments
The ready-to-build housing market posted an all-time high with 20,034 transactions worth AED 87.5bn, up 21% and 34% from Q1 2024. The under-construction property sector, which accounted for 56 per cent of all transactions, also showed significant growth with 25,440 transactions worth AED 55.2 billion.
Reasons For The Boom
Experts attribute the activity to sustained demand from both investors and end buyers. Rising rents are pushing residents to buy their own homes, while Dubai's status as a global business centre, favourable tax policy and stable economy continue to attract wealthy foreigners.
Price Dynamics
According to Bayut's analysis, in some areas villa prices have risen by more than 20% and apartment prices by up to 10%. In the premium segment, the increase was 11-21%. At the same time, a slight decrease in prices was recorded in Business Bay, which is explained by a shift in demand towards more affordable housing.
Prospects And Risks
Despite the optimistic outlook, experts warn of possible challenges, including rising interest rates and global economic uncertainty. However, the current pace of market development allows Dubai to maintain its leadership among global property centres, outperforming cities such as London and New York.
