The increases are driven by a strong feeling of investors, to the increase in population figures and a constant flow of global capital to the Emirate.
At the same time, commercial real estate sales increased by 18.2 percent year -on -year, with a 29.5 percent increase in the total value of transactions.
Dubai Real Estate 2025
Despite the usual seasonal fall of the fourth quarter, Dubai’s residential market offered wide base growth. Sales outside the plan increased 23.9 percent and secondary transactions increased by 20.3 percent, with a continuous demand at both ends of the price spectrum.
The apartments remained the type of dominant property, which includes 76 percent of all residential transactions.
Jumeirah Village Circle retained its advantage in the sales of apartments out of plan and real, backed by attractive prices, strong rental yields and proximity to the main road networks.
The impulse of the secondary market was also evident in Business Bay, Dubai Marina and the areas of the Dubai-Key center sought by investors and end users for their connectivity, proximity to services and durable rental demand.
The Villa segment was a prominent clear for growth, with transactions that increased by 80.6 percent 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 the villas increased by 55.1 percent, pointing out a growing preference for more affordable and family oriented homes in Dubai’s margin.
In the luxury and ultra luxury segment, Dubai coined his impulse. Sales above AED10M ($ 2.7 million) grew by 29 percent from the first quarter of 2024, and now rose 185 percent from the first quarter of 2022.
Palm Jumeirah and the rapid emerging Palm Jebel Ali represented 31 percent of sales on AED10M ($ 2.7 million), backed by the demand for ultraruuosas villas and in front of the sea.
The notable agreements included the sale AED425M ($ 116 million) of the Marble Palace in Emirates Hills and an AED115m villa ($ 31.3) in the Eome community of Palm Jumeirah, negotiated by the private office of Engel & Völkers Fadi Fadi Alsalem.
Dubai continues to establish itself as the main destination of the world for people of high network.
According to Henley & Partners, the number of resident millionaires has grown by more than 100 percent in the last decade, with the EAU 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 wealth is relocated to stable and high-performance destinations.
The Dubai rental market also reflected the sustained demand, with more than 51,000 new residents added only in the first quarter.
While rent increases show signs of stabilization, luxury apartments in blue waters (+14.1 percent) and villas and houses attached to Dubai Hills Estate (+33.8 percent) and Arab ranches (+20.6 percent) recorded a significant year of the year.
Commercial real estate continued their ascending career, with office segments, retail and mixed use, all publication profits.
Office sales transactions increased by 40 percent, and the average price per square foot increased 15 percent to AED1.676 ($ 456).
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 percent year -on -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 percent in the quarter throughout the commercial sector.
Office income grew 23 percent year -on -year to AED112 ($ 30.5) by square feet, led by demand in central commercial districts such as Business Bay, JLT and Dubai Investments Park.
While retail trade remembers Reminet stable in AED240 ($ 65) per square foot, the increase in the appetite due to the grade space to suggests that the upward pressure on prices can arise in the second half of the year.
Daniel Hadi, CEO of Engel & Völkers Middle East, said: “Given the world’s economic uncertainty, Dubai’s real estate market continues to show excellent foundations, with intersectoral growth and convincing yields for investors.
“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, including the acceleration of the Etihad Rail project, the deployment of the Dubai loop system and strategic road improvements in the central commercial areas, further reinforce the competitive advantage of the city.
The main commercial projects announced in the first quarter of 2025, such as the AED5BN remodeling ($ 1.3bn) of Mall of the Emirates also indicate a strong confidence of the main Dubai developers in the long -term resistance of the retail and consumption sectors of the city.
While Dubai continues to attract global investors, business leaders and new residents, Engel & Völkers remains optimistic about the perspectives for the 2025 reminder.
Hadi said: “Of residential real estate to commercials, Dubai looks more and more as a safe refuge for capital and a high -performance market that rewards long -term vision.”
