Dubai Real Estate Kicks Off 2025 with Strong Start, Led by Soaring Villa Sales
Dubai’s property market entered 2025 on a high note, as villa sales recorded an impressive 65% jump in transactions and a 56% increase in total value. The first quarter carried forward the momentum seen in 2024, with total real estate deals up 23% year-on-year to 42,422 and the overall value of transactions reaching Dh114 billion, based on data from the Dubai Land Department (DLD).
While apartments continued to make up the majority of transactions by volume, villas clearly stole the show in Q1. The number of villa deals climbed to 10,185, bringing in Dh53.4 billion in value, driven by strong demand and tight inventory. Apartments also performed steadily, with a 14% rise in sales to 32,237 units and a 12% increase in value to Dh60.8 billion. Off-plan properties remained a key part of the market, contributing 59% of all sales with 24,942 transactions up 25% compared to the same period last year.
Although off-plan continues to dominate, we’ve seen a 30% decline in prime off-plan transactions, while prime secondary market sales jumped by 77%,
On a quarter-over-quarter basis, the market saw a slight seasonal dip following a record Q4 in 2024. Total transactions slipped by 10%, and value decreased by 3%. However, villas defied the trend, with a 12% rise in sales.
The rental segment also showed strong performance. Apartment and townhouse rents climbed 14% and 7%, respectively, while villa rentals surged by 52% quarter-on-quarter. This increased demand for larger homes mirrors the city’s growing family population and changing lifestyle trends favoring more spacious living.
Buyer interest remained strong across all categories. Overall enquiries went up 14% year-on-year and jumped 51% from Q4 2024. Apartment leads increased 30% from the previous quarter and 12% annually. Villa demand remained solid, with a 38% quarter-on-quarter rise and a 5% annual increase. Townhouses stood out as a rising star, with buyer interest soaring 64% from the previous quarter and up 30% year-on-year, as they strike a balance between size and affordability.
However, some headwinds may lie ahead. Rising property prices and a possible shift in investor sentiment could impact demand for speculative off-plan developments. The market’s continued strength will depend on timely project completions and broader economic stability as the year progresses. For now, Dubai remains a top choice for global investors and homebuyers.
Analysts credit Dubai’s real estate strength to its economic stability, tax benefits, and premium lifestyle offerings. The city’s ability to attract affluent individuals and families fuels demand for high-end homes. The increase in mortgage-backed purchases further suggests a long-term outlook, adding depth and resilience to the market.
Source : Khaleej Times
