Dubai Real Estate Transactions Top AED 140 Billion in Q1

Following on from a record-breaking 2024, the Dubai real estate market has registered transactions in excess of AED 140 billion (approximately US$38.12 billion) during the first quarter of 2025. This represents a 30% jump from Q1 2024, with the total number of transactions exceeding 45,000. These numbers are according to a recent market report quoted by local publication Arabian Business. 

Q1 2025 is now the second most successful quarter, value-wise, in the history of Dubai real estate, marginally below Q4 2024’s ~AED 147 billion (approximately US$40.02 billion). 

Leading the way are land deals with a staggering YoY jump of 193%. Villa sales have risen by a significant 43% to settle at AED 41.3 billion (approximately US$11.24), as have apartment sales by 12% to reach AED 62 billion (approximately US$16.88 billion). 

High-performing areas include the usual suspects such as Dubai Hills, Dubai Marina and Business Bay, as well as newer and rapidly expanding communities like Dubai South — the home of the highly anticipated Al Maktoum International Airport.

The figures go a long way in countering fears that Dubai real estate has grown into a bubble waiting to crash. If anything, they bolster predictions of experts including analysts at Christie’s International Real Estate Dubai that the market is set for a natural stabilisation after a period of unprecedented growth. 

Our projections at the outset of this year pegged average city-wide price increases at between 5-10%, with the luxury market in particular enjoying an average 8-10% price rise. Sheikh Zayed Road and Al Jaddaf — two areas where freehold was recently permitted — were and still are expected to see jumps in property value of as much as 30-50%. Taking into account various market reports and opinions, we also projected overall Dubai handovers to be between 40,000 and 50,000 units this year, a range the city is still on course to achieve. The first month alone strongly backed these initial projections, with January enjoying a spectacular AED 44.4 billion (approximately US$12.09 billion) in sales value. 

This robust market performance is backed by growing demand and an influx of residents. At the end of Q1 2025, Dubai’s population stood at 3.914 million — already an increase from 2024’s 3.825 million. The city is expected to comprise 4 million residents by the end of this calendar year.