Engel & Völkers Middle East, leader in Premium residential and commercial real estate services, has published its reports from the first quarter of 2025, turning another prominent quarter for the real estate sector of Dubai. Residential property sales increased by 22.4% year -on -year, with a 29.6% increase in the total value sold, driven by a strong feeling of investors, to the increase in population figures and a constant flow of global capital in the Emirate. Commercial real estate sales increased by 18.2%, with an increase of 29.5% in the total value of transactions.
Despite the usual seasonal fall of the fourth quarter, Dubai’s residential market offered wide base growth. Sales outside the plan increased 23.9% and secondary transactions increased by 20.3%, with a continuous demand at both ends of the price spectrum.
The apartments remained the type of dominant property, which includes 76% of all residential transactions. Jumeirah Village Circle retained its advantage in the sales of apartments out of plan and resale, with the support of attractive prices, strong rental yields and proximity to the main road networks. The impulse of the secondary market was also obvious in Business Bay, Dubai Marinaand areas of the Dubai-Key center sought by investors and end users equally for connectivity, proximity to services and durable rental demand.
The Villa segment was a prominent clear for growth, with transactions that increased by 80.6% year -on -year. The increase was mainly directed by the activity outside the plan in emerging and planned communities such as El Valle, Emaar South and the Damac Islands. The total transaction value for villas increased by 55.1%, pointing to a growing preference for more affordable and family oriented homes in the Dut Dubai.
In the luxury and ultra luxury segment, Dubai coined his impulse. Sales prior to 10 million AED grew by 29% from the first quarter of 2024, and now they rose 185% from the first quarter of 2022. Palm Jumeirah and the rapid emerging Palm Jebel Ali represented 31% of sales of approximately 10 million, backed by the demand for ultra luxury. The notable agreements included the sale of 425 million AED of the Mármol Palace in Emirates Hills and a Villa of 115 million DEA in the Eome community of Palm Jumeirah, That the Advisor of the private office of Engel & Völkers Fadi Alsalem negotiated.
Dubai Continues to establish ITELF as the main destination of the world for high -level network individuals. According to Henley & PartnersThe number of resident millionaires has grown by approximately 100% in the last decade, with The EAU By attracting more hnwi than any other country in 2023 and 2024. Today, Dubai is home to more than 81,000 millionaires, 237 centi-millones and 20 billionaires, a figure that will increase as global is deployed.
The Dubai rental market also reflected a sustained demand, with more than 51,000 new added residents only in the first quarter. While rental increases show signs of stabilization, luxury apartments in blue waters (+14.1%) and villas and houses attached in Dubai Hills Estate (+33.8%) and Arab ranches (+20.6%) recorded significant and interannual growth.
Commercial real estate continued their ascending career, with office segments, retail and mixed use, all publication profits. Office sales transactions increased by 40%, and the average price per SQ. Ft. It rose 15% to AED 1,676. Business Bay and JLT remained the main centers for the office space of Grade A, registering sales 315 and 217 respectively. The interest outside the Capital One helped to place Motor City as a leading office investment destination in the first quarter. Meanwhile, retail sales increased 6% year after year, with concentration in prosperial and mixed use communities such as Business Bay, Arjan and JVC.
The lease activity also accelerated, with an increase of 17.6% in the quarter throughout the commercial sector. Office income grew 23% year -on -year to 112 by SQ. ft., Directed by the demand in central commercial districts such as Business Bay, JLT and Dubai Investments Park. While retail rentals traced stable in AED 240 by SQ. Ft., The increase in appetite due to the grade space to suggests that ascending pressure on prices can arise in the second half of the year.
“Given the world’s economic uncertainty, Dubai’s real estate market continues to show excellent foundations, with intersectoral growth and convincing yields for investors,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Demand feeds not only for regional wealth and migration, but also for strategic policy, investment in infrastructure and the global positioning of the city as a future center for life and business.”
Recent infrastructure ads, to include the acceleration of the Railway Project of Etihad, the deployment of the Dubai Loop system and the strategic improvements of roads in the central commercial areas, it is expected to further reinforce the competitive advantage of the city.
Important commercial projects announced in the first quarter of 2025Such as the reurbing of 5 billion aed from Mall of the Emirates, It also indicates a strong confidence of the main developers of Dubai in the long -term resistance of the retail and consumption sectors of the city.
As Dubai continues to attract global investors, business leaders and new residents, Engel & Völkers remains optimistic about the perspectives for the 2025 reminder. “Of the main residential residentials to commercial real estate, Dubai is increasingly seen Rhaven a vision of a port,” Hadi added.
