The Dubai real estate market is not only resisting global slowdown trends — it’s thriving. According to consultancy Cavendish Maxwell, the emirate is expected to deliver 73,000 new homes by 2025 and a total of 300,000 by 2028, marking one of the largest residential expansions in its history.
Despite a slight quarter-on-quarter dip in Q1 2025, the market saw 42,000 transactions worth AED 114.4 billion, up 23% year-on-year. Analysts point to a maturing market with healthy quarterly growth, currently at 2.8% compared to 4% in previous years.
In Q1 alone, 95 new projects were launched, adding 29,000 units. Around 9,300 units were completed — 80% of which were apartments. Jumeirah Village Circle (JVC) led all areas with 4,330 completions and over 3,300 sales.
Off-plan sales continued to dominate, contributing to nearly 70% of total transactions, while secondary sales also rose 6.6% annually. Buyers are shifting toward larger living spaces, with growing demand for townhouses and villas.
Luxury properties are also seeing strong momentum. In Q1 2025, 590 luxury homes (worth over AED 20 million) were sold, 67% of which were off-plan. The average property price rose 16% YoY, hitting AED 1,535 per sq. ft. by March.
According to Sivaprasad, Chairman of Condor Developers, “Dubai’s luxury segment continues to soar with increasing interest from global high-net-worth individuals, supported by strategic planning and investor trust.”
On the rental side, growth is stabilizing. While annual rental increases stood at 14.4%, quarterly growth was only 1% — the slowest in two years. However, rental yields remain attractive, with some areas offering returns up to 10.3%.
May 2025 saw record-breaking activity, with AED 66.8 billion in real estate transactions — a nearly 50% jump from May 2024. These numbers highlight Dubai’s transformation into a global real estate powerhouse, powered by consistent demand and economic stability.
Despite concerns of a potential price correction, experts like Firas Al Msaddi from fäm Properties emphasize that the market is simply moving into a more sustainable growth phase, not a downturn.
At CityNest Realty, we specialize in helping investors and homebuyers navigate Dubai’s fast-evolving residential property market. Whether you’re interested in off-plan investments, ready-to-move-in units, or luxury real estate, our expert team is here to guide you.
Is Dubai’s property market still growing in 2025?
Yes. Despite a slight dip from Q4 2024, Q1 2025 saw a 23% increase in transaction volume compared to the same period last year.
Which area in Dubai had the highest number of new apartments in Q1 2025?
Jumeirah Village Circle (JVC) led in both new apartment completions and sales activity.
What’s the status of luxury real estate in Dubai?
Luxury real estate is thriving, with 590 properties sold over AED 20 million, mostly in the off-plan segment.
Are rental yields in Dubai still attractive?
Yes, rental yields remain strong — up to 10.3% in some areas like International City and Dubai Investments Park.
What’s driving Dubai’s real estate growth?
Factors include off-plan investment demand, luxury property boom, population growth, and a diversified buyer base.
