Off-plan properties dominated, though secondary market sales gained traction
Dubai’s real estate market is underpinned by economic resilience, with the UAE’s GDP projected to grow 6.2 per cent in 2025.. Photos by File photo
Dubai’s real estate market recorded a stellar performance in April 2025 with residential sales transactions soaring, rental activity holding firm, and commercial rents climbing.
Reports from Betterhomes and Engel & Völkers Middle East, complemented by insights from market experts and Deloitte, reveal a market fuelled by strong investor confidence, diverse buyer demographics, and sustained demand across residential and commercial sectors.
Engel & Völkers Middle East reported 17,447 transactions, a remarkable 61 per cent year-on-year increase, while Betterhomes recorded 15,213 deals valued at Dh46.18 billion, marking a 23.1 per cent month-on-month surge. The discrepancy in transaction numbers reflects differing methodologies, but both underscore robust market momentum.
Engel & Völkers noted that April’s volumes exceeded Q1 2025’s monthly average by over 20 per cent, driven by a softer US dollar enhancing affordability for international buyers.
Off-plan properties dominated, accounting for 59 per cent of transactions, as per Betterhomes data, though secondary market sales gained traction, rising to 41 per cent from 38 per cent in March. Average prices per square foot climbed 2.05 per cent to Dh1,730, reflecting sustained price appreciation amid limited inventory in prime areas.
Deloitte’s 2025 Real Estate Predictions report corroborates this trend, noting a 20 per cent price increase in 2024 to Dh1,597 per square foot, with villas in high demand. Apartments, particularly studios and one-bedroom units, comprised over two-thirds of transactions, with Motor City, Dubai Marina, and Dubai Land leading the segment.
Villas and townhouses, especially four- and five-bedroom configurations, saw strong interest in Dubai Hills Estate, Al Furjan, and Jumeirah Golf Estates, signalling a preference for spacious, family-oriented homes. Jumeirah Village Circle remained the top-transacting area, appealing to both end-users and investors for its value, while Damac Islands gained momentum with affordable waterfront villas.
“April was a standout month,” said Christopher Cina, director of sales at Betterhomes.“The consistent demand across diverse communities like Dubai Hills Estate and Motor City shows buyers are investing in lifestyles, not just properties.”
Daniel Hadi, CEO of Engel & Völkers Middle East, added: “Dubai’s unique blend of lifestyle, high yields, and policy stability positions it as a safe haven for global capital.”
The rental market remained buoyant, with Betterhomes reporting 29,423 transactions in April, a 23 per cent drop from March but still reflective of strong tenant interest, evidenced by a 1.2 per cent rise in tenant inquiries. Apartment rentals averaged Dh140,000 annually, with Dubai Marina, Jumeirah Lake Towers, and Dubai Land as top choices.
Villas commanded Dh296,000 per year, with Tilal Al Ghaf and Dubai Hills Estate leading, while townhouses averaged Dh226,800, with Damac Hills 2 seeing a 2.4 per cent rent increase.
Deloitte reported gross rental yields of 6.7 per cent in 2024, with significant rent spikes in areas like Dubailand (up to 46 per cent), driven by population growth and limited supply. Dubai’s population grew by over 51,000 in Q1 2025, further boosting rental demand.
Commercial real estate mirrored residential strength. Engel & Völkers reported a 22.4 per cent year-on-year rise in office rents, reaching Dh112 per square foot, and a 40.8 per cent surge in warehouse rents, propelled by e-commerce and logistics demand. Business Bay, Jumeirah Lake Towers, and Barsha Heights led transaction activity, with limited Grade A office space pushing rents higher. Deloitte highlighted a 28 per cent increase in warehouse rents in JAFZA, underscoring Dubai’s role as a trade hub.
Dubai’s real estate market is underpinned by economic resilience, with the UAE’s GDP projected to grow 6.2 per cent in 2025. Government initiatives, including the Dubai 2040 Urban Master Plan and visa reforms, continue to attract high-net-worth individuals — over 81,000 millionaires now reside in Dubai.
Analysts noted that as Dubai balances luxury, affordability, and sustainability, its real estate market is set to thrive through 2025, offering opportunities for investors and residents alike. With 7,848 residential units completed in Q1 2025 and 97,000 more expected by 2026, supply will ease pressure, but prime areas remain constrained, sustaining price growth.
While prices trend upward, Engel & Völkers noted early stabilisation in mature communities, suggesting a shift toward sustainability.
Source : Khaleej Time
Published: 12 May 2025
