Dubai’s real estate sector continues to demonstrate resilience and sustained momentum. Total transaction value reached AED 35.2 billion (US$ 9.6 billion) in January 2025, with 13,043 sales.
This represents a 22.9 percent increase in value and a 23.1 percent increase in volume compared to the same period last year.
Expanded ownership in strategic areas, improving regulations and a maturing investment environment have positioned Dubai as a leading global real estate center, attracting a diverse range of institutional and private investors.
Dubai real estate 2025
The recent conversion of properties along Sheikh Zayed Road and Al Jaddaf to freehold status marks one of the most significant changes in Dubai’s real estate market.
Owners of these areas are now actively participating in the transformation process, unlocking new investment opportunities and increasing market liquidity.
The move is expected to spur increased redevelopment activity and increase the long-term value of prime real estate, while also broadening access for foreign investors.
Farooq Syed, CEO of Springfield Properties, said: “The pace of regulatory innovation in Dubai continues to create an attractive investment environment that is both transparent and highly liquid.
“We are seeing sustained interest from global investors who recognize the city’s ability to offer stable yields, capital appreciation, and a regulatory framework that supports long-term growth.
“The introduction of new freehold areas, combined with infrastructure expansion and redevelopment initiatives, is reinforcing Dubai’s position as a real estate investment destination of choice”.
The off-plan market continued to drive sales, contributing AED 15.1 billion (US$ 4.1 billion) worth of transactions, while the secondary market recorded AED 20.1 billion (US$ 5.5 billion), reflecting the depth and maturity of Dubai’s real estate sector.
A balanced mix of off-plan and ready-to-move-in properties ensures market liquidity, allowing developers to meet both end-user demand and the growing appetite of long-term investors.
Dubai’s evolving rental framework also supports market stability and investment predictability. The introduction of Dubai Land Department’s Smart Rental Index increases transparency, enabling investors to better assess income potential and manage their long-term portfolio strategies.
At the same time, ongoing redevelopment efforts in mature areas have boosted property values, enhancing Dubai’s reputation as a quality investment destination.
Price segments continue to reflect changing buyer interests, with continued demand in both the luxury and mid-market segments. The average price of a villa on Palm Jumeirah is AED 47 million ($12.8 million), signaling continued demand for top quality properties. Meanwhile, residential developments such as Jumeirah Village Circle and DAMAC Hills 2 remain the most popular locations among mid-market investors.
The market’s ability to cater to a wide range of investor segments has played a key role in the market’s continued expansion.
Looking to the future, Dubai’s real estate market continues to be on a long-term growth trajectory. The city’s commitment to regulatory transparency, infrastructure investment and sustainable development strengthens its position as a global leader in real estate innovation.
Driven by continued capital inflows from institutional investors and increasing end-user demand, Dubai’s real estate sector is expected to maintain its upward trend beyond 2025.
