Dubai Real Estate Sees Surge in 2025 as Investors Flock to Off-Plan Market

Dubai’s residential property market has kicked off 2025 with exceptional performance, reflecting robust investor sentiment and growing end-user demand. According to market analysts, the emirate posted a 23% year-on-year increase in real estate transaction volumes during the first quarter—an indication that Dubai remains a global magnet for capital and lifestyle-focused buyers.

Off-Plan Market Dominates Sales
Off-plan properties continued to drive the majority of real estate activity, comprising 69% of all residential transactions. This surge coincides with a significant wave of new project launches, with over 30,000 residential units introduced to the market in Q1 alone—more than double the volume seen in the same period last year.

Apartments made up the bulk of these new offerings, reaffirming their position as the dominant housing type in Dubai. In the ready property segment, which accounted for 31% of total transactions, apartments similarly led the market, representing 81% of sales.

Growth Beyond the Core
As land becomes scarcer and property prices rise in central Dubai, developers are expanding outward. Peripheral districts such as Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons are seeing heightened development and transactional activity. These emerging areas represented 55% of total residential transactions and over half of new project launches in Q1 2025.

Villas Gain Momentum in Prime Segment
Although apartments dominate the market by volume, villas and townhouses are gaining ground, especially in the high-end sector. The share of villa and townhouse transactions rose to 24%, up from 18% in the previous quarter, reflecting growing interest from families and affluent buyers seeking larger living spaces.

Prime residential sales saw particularly impressive growth. More than 1,300 homes priced over AED10 million ($2.72 million) were sold in Q1—a 31% jump year-on-year. Villas accounted for a dominant 73% of these high-value transactions, with sales increasing by 52% compared to Q1 2024.

What’s Driving the Market?
Dubai continues to attract high-net-worth individuals (HNWIs) from across the globe, thanks to its combination of political stability, favorable tax regime, and lifestyle perks. The city’s Golden Visa programme, streamlined business setup processes, and strong infrastructure have only amplified its appeal in an uncertain global environment.

Industry experts note that luxury villas in exclusive areas remain in high demand, despite limited inventory. Space, privacy, and a secure investment environment are the key drivers.

Outlook for 2025
The trajectory for Dubai’s real estate sector remains positive. While global markets face macroeconomic challenges and geopolitical tensions, Dubai is expected to maintain momentum due to its investor-friendly policies, continued population growth, and consistent delivery of high-quality residential products.