Key Highlights:

• Dubai’s residential property transactions jumped 23% year-over-year in Q1 2025, signaling robust market growth.
• Off-plan sales led the market, making up 69% of all deals, with apartments dominating overall transactions.
• Prime property sales soared, with over 1,300 units sold above AED 10 million-a 31% annual increase.
• Golden Visas, low taxes, and a luxury lifestyle are fueling unprecedented demand from global investors.

Due to ongoing demand from a growing population and increased investor interest, Dubai’s residential market started off solid this year, as confirmed by sources.

According to the Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter of the year saw a substantial 23% year-over-year growth in transaction volumes, highlighting the emirate’s capability for finding a balance between quality of living and investment potential.

According to Rachael Kennerley, Director of Research, “Off-plan sales remained the mainstay of transaction activity in Q1 2025, accounting for 69% of all deals.” Over 30,000 units, most of which were apartments, were introduced in the residential market during the quarter, indicating an excellent supply.

Dubai Real Estate Growth

“This amount is more than twice as much as was recorded during the same time last year, as developers took advantage of robust market demand.”

The remaining 31% of transactions were in the ready market, which included handover and finished project transactions.

Apartment sales were the most common transaction in this group, accounting for 81% of all transactions, indicating their dominance in Dubai’s housing stock.

With 76% of all transactions, apartments accounted for the majority of sales activity in the market as a whole.

Nonetheless, the villa and townhouse market saw a significant resurgence, as transactions increased from 18% in the prior quarter to 24% in the first quarter of 2025.

Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons are some of the well-known micro markets along the Al Khail corridor, which accounted for 55% of all transaction volumes and 56% of all newly launched residential units.

According to Savills, development in the city’s core residential neighborhoods has been forced to the periphery due to land saturation and low affordability.

Dubai’s premier residential sector is still doing well, in large part due to its ongoing attractiveness to high-net-worth individuals. Strong quality of life offerings, low tax rates, inexpensive startup costs for businesses, and the effectiveness of the Golden Visa program all contributed to the demand.

In Q1 2025, over 1,300 units were sold for more than AED10 million ($2.72 million), a 31% increase from the previous year.

In contrast to the general market, villas accounted for 73% of prime deals, experiencing a 52% increase compared to the previous quarter and a 4% quarter-over-quarter increase.

“Demand has not only sustained but strengthened across Dubai’s prime residential segment,” said Andrew Cummings, Head of the Residential Agency. The world’s wealthiest are increasingly realizing Dubai’s attraction in the face of tariff conflicts, geopolitical uncertainty, and unstable tax environments, and developers are stepping up to the challenge.

“The preferred option is a villa in a desirable location with privacy and space, but supply is currently limited.”

Future prospects for Dubai’s residential market are still bright. According to Savills, the emirate’s political stability, competitive regulatory environment, and business-friendly ecosystem are projected to sustain continuous inflows of people and capital despite global macroeconomic and unpredictable political events.

However, the development pipeline is important and demands a supply and demand balance.

Conclusion

In 2025, Dubai’s real estate market is expected to rise rapidly due to a combination of planned government efforts, a favorable economic climate, and a dedication to sustainable development. 

The city is a top real estate investment destination because of its capacity to draw in foreign investors with initiatives like the Golden Visa and its tax-free environment and luxurious offers. Dubai’s real estate market is expected to present significant prospects for global investors as it develops further.