Betterhomes - Record-Breaking Start to 2025 for Dubai Real Estate: Transactions Surge 23% in Q1

Dubai Property Market Sees Robust Growth as Off-Plan Property Dominates; Premium Neighborhoods Lead Price Rally

DUBAI, UAE, April 23, 2025 /PRNewswire/ -- Dubai's real estate market continued its upward trajectory in the first quarter of 2025, achieving record-high sales volumes and values, according to the latest Betterhomes Q1 2025 Dubai Residential Real Estate Market Report.

Total residential property transactions in Q1 2025 jumped 23% year-on-year to over 42,000 deals, with total sales value increasing 29% to approximately AED 114 billion. Off-plan property in Dubai accounted for 59% of all transactions in the quarter, underscoring the enduring appeal of new developments for buyers. This robust performance has been fueled by sustained end-user demand and investor confidence, marking Q1 2025 as one of the strongest quarters on record for Dubai real estate.

The Betterhomes report highlights that premium neighborhoods continue to drive the market's growth. Communities such as Dubai Hills Estate, Palm Jumeirah, and Jumeirah Golf Estates were among the top-performing areas in Q1, as high-value transactions and strong buyer interest concentrated in these locales. The villa segment in particular stood out with notably higher transaction growth, reflecting a surge of interest from both families and investors in larger, luxury properties, especially multi-bed units that cater to lifestyle and comfort.

Both local and international buyers remain active, attracted by Dubai's tax-free advantages, high rental yields, and availability of quality properties for sale in Dubai across all segments of the market.

Property prices reached new highs during the quarter. The average residential sales price hit AED 1,535 per square foot, up 16% compared to Q1 2024. This rise has been driven by tight supply—especially for villas and three-plus-bed homes—and competitive market conditions. Despite increasing prices, rental yields remain attractive. Rents have also climbed, supporting continued investor interest with strong income potential.

On the supply side, development activity is ramping up. A total of 7,848 residential units were completed in Q1 2025, with nearly 97,000 additional units expected for delivery by 2026. While this incoming supply is expected to create more choices for buyers and investors in the medium term, inventory in key communities remains limited, contributing to elevated demand and upward price pressure.

"Q1 2025 has been an exceptional quarter for Dubai real estate, reinforcing the market's strength and appeal to buyers and investors alike," said Louis Harding, Chief Executive Officer of Betterhomes. "The impressive growth in sales and values we've seen – across both off-plan projects and established communities – reflects both local end-user confidence and sustained international investment interest in Dubai. We are optimistic that this momentum will carry through the rest of 2025, supported by continued economic growth and new supply coming to market. Dubai remains one of the world's most attractive property markets for investors and homebuyers seeking long-term value."

For real estate buyers and investors, the Betterhomes Q1 2025 Dubai Residential Real Estate Market Report offers in-depth insights into community-level performance, demand patterns, and the evolving landscape of investment-grade housing across the city.

To access the full report and in-depth analysis, visit: www.bhomes.com.

Press Contact Details:

Name: Elsa Angelo

Email: elsa.angelo@betterhomes.com

Organization: Betterhomes

Website: https://www.bhomes.com/en