The Dubai Real Estate Market Q1 2025

Dubai's property market sees sales values rising 31% Y-O-Y to AED 142.46B, with transactions increasing 22%. Meanwhile, long-term rentals experience a 9-10% decline both Q-O-Q and Y-O-Y.

Real Estate Transactions Q1 2025

Dubai's property market has once again proven its strength, showing substantial progress in the first quarter of 2025. According to the Dubai Land Department (DLD), total sales value surged to AED 142.46 billion, reflecting an impressive 31% jump compared to Q1 2024. Meanwhile, sales volume hit 45,376 transactions, representing a remarkable 22% growth from last year. These figures emphasize Dubai's unwavering status as a prime destination for global investment.

Long-Term Rentals Decline

Long-Term Lease Renewals Take a Hit: A sharp 30% drop in February 2025.
Market Trends Shifting: Villa & Townhouse demand down 14%, Apartment market dips by 6% (H1 vs H2 2024).
Rentals Declining Year-on-Year: A 9.92% decrease from Q1 2024 to Q1 2025.
Quarterly Rental Slide: Q4 2024 to Q1 2025 sees a 9.25% drop.

Dubai's property landscape is shifting as more residents move toward homeownership. February 2025 saw a 30% drop in rental renewals, reflecting a shift in priorities according to Khaleej Times. This is driven by rising rents, which have doubled in some communities over the past four years, and an influx of new residents. Developers are responding by introducing innovative payment plans like 80/20 structures, lower down payments, and extended terms to attract buyers.

Villa and townhouse sales surged 105% year-on-year, showing a clear preference for long-term commitments and settling in the city. Affordable rental communities also gained traction, offering competitive rents and quality developments, supported by hybrid work arrangements. Notably, DAMAC Properties is now providing bank financing for off-plan projects earlier in the construction phase, making luxury living more accessible.

The growing appeal of Dubai's property market highlights confidence in the city's future and its international allure. Developers are cashing in on the trend by offering flexible financial solutions to meet the demands of tenants transitioning to ownership.

Area Focus: Dubai Marina & Al Furjan

Dubai Marina

Q1 2025 Growth: Residential sales prices rose consistently: 2.9% in January, 3% in February, and 0.18% in March highlighting Dubai Marina’s attractiveness. Over the past 12 months, residential sales prices increased by a robust 9.35%, offering lucrative capital appreciation for investors. Such performance signals long-term growth potential in one of Dubai's most sought-after communities.

Al Furjan

Al Furjan is emerging as a highly attractive hotspot for real estate investors in Dubai. The data reflects robust growth and promising opportunities, particularly for residential sales and development projects in the area. The residential sales market in Al Furjan has demonstrated impressive growth in Q1 of this year. Month-on-month residential sales prices surged by 3.79% in January, 4.53% in February, and 3.28% in March. Furthermore, over the past 12 months, residential sales prices have achieved a remarkable 22.59% increase, signaling sustained demand and appreciation potential. This growth clearly indicates the area's rising desirability among homeowners and investors alike.

More on Dubai Marina & Al Furjan in The Lewis & Dore Dubai Real Estate Market Q1 2025

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