Engel & Völkers Middle East has released its Q1 2025 market reports, confirming another standout quarter for Dubai’s real estate sector.
Residential property sales increased by 22.4% year-on-year, with a 29.6% increase in the total value sold, driven by strong investor sentiment, rising population figures, and a steady flow of global capital into the emirate.
Despite the usual seasonal dip from Q4, Dubai’s residential market delivered broad-based growth. Off-plan sales were up 23.9% and secondary transactions rose 20.3%, with continued demand across both ends of the price spectrum.
Apartments remained the dominant property type, comprising 76% of all residential transactions. Jumeirah Village Circle retained its lead in both off-plan and resale apartment sales, supported by attractive pricing, strong rental yields, and proximity to major road networks.
Secondary market momentum was also evident in Business Bay, Dubai Marina, and Downtown Dubai – key areas sought by investors and end-users alike for their connectivity, proximity to amenities and enduring rental demand.
The villa segment was a clear standout for growth, with transactions increasing by 80.6% year-on-year. The surge was primarily led by off-plan activity in emerging, masterplanned communities such as The Valley, Emaar South, and Damac Islands.
The total transaction value for villas rose by 55.1%, pointing to a growing preference for more affordable, family-oriented housing in newer developments on the fringes of Dubai.
In the luxury and ultra-luxury segment, Dubai maintained its momentum. Sales above AED 10m grew by 29% from Q1 2024, and are now up 185% from Q1 2022. Palm Jumeirah and the rapidly emerging Palm Jebel Ali accounted for 31% of sales over AED 10m, supported by demand for ultra-luxury, waterfront villas.
Noteworthy deals included the AED 425m sale of the Marble Palace in Emirates Hills and an AED 115m villa in Palm Jumeirah’s EOME community, brokered by Engel & Völkers Private Office Advisor Fadi Alsalem.
Dubai continues to establish itself as the world’s leading destination for high-net-worth individuals. According to Henley & Partners, the number of resident millionaires has grown by over 100% in the past decade, with the UAE attracting more HNWIs than any other country in 2023 and 2024.
Today, Dubai is home to over 81,000 millionaires, 237 centi-millionaires, and 20 billionaires – a figure that is set to rise as global wealth reallocates toward stable, high-performing destinations.
Dubai’s rental market also reflected sustained demand, with over 51,000 new residents added in the first quarter alone. While rent increases show signs of stabilising, luxury apartments in Bluewaters (+14.1%) and villas and townhouses in Dubai Hills Estate (+33.8%), and Arabian Ranches (+20.6%) registered significant year-on-year growth.
“In the face of global economic uncertainty, Dubai’s real estate market continues to show excellent fundamentals, with cross-sector growth and compelling returns for investors.
“Demand is being fuelled not just by regional wealth and migration, but by strategic policy, infrastructure investment, and the city’s global positioning as a future-forward hub for living and business.”
Daniel Hadi, CEO, Engel & Völkers Middle East
