Dubai real estate: Property market sees strong Q1 2025 growth, shift towards homeownership

Dubai's real estate market recorded substantial growth in the first quarter of 2025, with data from the Dubai Land Department (DLD) showing a 29 per cent year-on-year increase in total sales value to AED114 billion.
Sales volume rose by 23 per cent compared to the same period in 2024.
Property firm Allsopp & Allsopp reported even stronger figures, with a 58 per cent year-on-year increase in total sales transaction value for Q1 2025 and a 7 per cent rise in sales volume compared to Q4 2024.
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Dubai real estate growth
'The 65 per cent year-on-year increase in villa and townhouse sales is a clear indication of strong investor confidence and a desire for long-term residential opportunities. Whether you're looking for a family home or a strategic investment, this is the moment to take advantage of Dubai's market,' Lewis Allsopp, Chairman of Allsopp & Allsopp said.
The rental market is showing signs of transformation amid the sales boom. The DLD reported an average sales price of AED2.7 million in Q1 2025, making homeownership increasingly accessible.
This shift is reflected in a 9 per cent decline in rental contract renewals and a 19 per cent drop in new rental contracts.
'While we don't anticipate a sharp decline in Dubai rental prices in the immediate future, the increasing move towards homeownership is a notable trend' Allsopp said, adding 'the 13 per cent decrease in rental transaction volume suggests a potential recalibration of the rental market and this could lead to more stability as supply adjusts to demand and landlords adapt.'
Key data from Q1 2025 includes:
58 per cent increase in sales transaction value year-on-year (Allsopp & Allsopp)
The average price increased by 31 per cent in Q1 2025 (Allsopp & Allsopp)
43 per cent increase in Q1 for villa/townhouse sales transaction volume (Allsopp & Allsopp)
29 per cent increase in total sales transaction value year-on-year (Dubai Land Department)

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