Dubai’s real estate market saw a 29.2% y-o-y increase in value of transactions, worth AED 114.1 bn, in 1Q 2025, according to a press release citing data from Dubai-based real estate broker Springfield Properties ’ latest market insights report. The number of transactions climbed to 42.3k, up 23.1% y-o-y, showing investor confidence in Dubai’s regulatory framework, Springfield Properties CEO Farooq Syed said.

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The breakdown: Off-plan sales remained the key driver of growth, with 24.9k transactions completed in the quarter, up from 20k a year earlier. The ready market also gained momentum, with transaction values rising to AED 60.2 bn, compared to AED 43.9 bn in 1Q 2024, pointing to broad investor interest across both segments.

Rental prices continued to rise: Average rents increased by 14% y-o-y, reaching AED 81 per sqft, continuing 2024’s rental price uptick. Dubai South led the rental growth, with a 26.4% increase, followed by Al Furjan at 21.6%.

Looking ahead, property prices are expected to rise 5-10% in 2025, “driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns,” Syed said.

REMEMBER- Dubai’s property market is on track to see a record 72.4k units delivered this year, a 171% increase from the previous year. The new property influx is expected to stabilize market prices, with Knight Frank predicting price increases to slow to 8%, down from double-digit growth in 2024, and Moody’s forecasting a dip or stabilization over the next 12-18 months due to rising construction costs and potential delays. A Deloitte report also expects new market supply to slow residential price and rent growth.

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