Detailed Analysis, Insights, and Forecast**

• Transactions: About 42,200 in Q1 2025
• Transaction growth YoY: 23.1 percent
• Total sales value: AED 114.4 billion
• Sales value growth YoY: 29.6 percent
• Average price growth QoQ: 2.8 percent
• Average price growth YoY: 15.8 percent
• New units delivered Q1: approx. 9,300
• Units expected in 2025: approx. 73,000
  

Why Q1 2025 Matters**

Dubai continues its momentum with strong demand from residents, global investors, and long term buyers. Q1 2025 confirms a market that is growing, stabilising, and maturing at the same time.

Key Market Highlights Q1 2025

2.1 Transactions and Sales Value

Residential transactions reached about 42,200 units, which represents 23.1 percent growth year on year.
Total transaction value increased to AED 114.4 billion, marking 29.6 percent growth.

What this means
Dubai continues to attract buyers across all segments. Confidence in the market remains strong.

2.2 Price Performance

• Prices rose 2.8 percent quarter on quarter
• Prices are up 15.8 percent year on year

Interpretation
This growth shows stability without overheating. Buyers can still enter with confidence while investors enjoy healthy appreciation.

2.3 Supply Pipeline

• 9,300 new units were completed in Q1
• More than 73,000 units expected by end of 2025

Impact
The supply pipeline provides choice and controls extreme price spikes.

Market Analysis

(Search Intent: Why prices changed)**

3.1 Demand Drivers

• Population growth
• Job creation
• Residency visas
• Tax free environment
• Safe investment ecosystem

These factors keep the residential market active and diverse.

3.2 Buyer Behaviour Shifts

Apartments dominate in number, but villas and townhouses show strong lifestyle driven demand.
More families, long term buyers, and high net worth individuals are entering the market.

3.3 Investor Preferences

Investors prefer:

• Off plan for long term appreciation
• Ready villas for rental and lifestyle
• Community based living

Segment Breakdown

(Search Intent: Apartment vs villa)**

Apartments

• Strongest in volume
• Higher supply coming
• More balanced pricing
• Suitable for first time investors

Villas and Townhouses

• Higher demand from families
• Lower supply
• Premium price resilience
• Strong long term value

What Buyers Should Know

For Investors

• Consistent value growth improves long horizon returns
• Higher supply means more selective buying is possible
• Off plan remains strong for capital gains
• Ready units have rising rental demand

For End-Users

• More choices in ready properties
• Better opportunity to negotiate
• Prices rising at a controlled pace
• Long term equity growth expected

For Agents

• Use data backed advisory
• Educate clients with real numbers
• Highlight lifestyle positioning
• Focus on communities with growing demand

Risk Factors To Watch

(Search Intent: Market risk)**

• Large supply deliveries may soften apartment growth
• Global interest rates can affect international buyers
• Investor behaviour shifts may prioritise value over speculation

FAQs

Are Dubai property prices still rising in 2025?

Yes. Prices increased 2.8 percent quarter on quarter and 15.8 percent year on year.

Is it a good time to invest?

Yes. Price growth is stable, supply is expanding, and demand remains strong.

Which segment is performing best?

Villas show strong lifestyle driven demand. Apartments lead in transaction volume.

Dubai’s residential market in Q1 2025 shows strong demand, rising values, and sustainable growth. The market is maturing, attracting global capital and long term residents.
Whether you are an investor, end user, or agent, the fundamentals remain positive for 2025 and beyond.