Residential property sales in Dubai saw a remarkable 22.4 percent increase year-on-year during the first quarter, accompanied by a 29.6 percent rise in the total sales value, according to a report released on Thursday.
As reported by Engel & Völkers Middle East, a prominent player in the premium real estate sector, sales in the commercial real estate sector also increased by 18.2 percent year-over-year, with a total transaction value surge of 29.5 percent.
Despite the typical seasonal decline following Q4, Dubai’s residential market has showcased comprehensive growth. Off-plan property sales rose by 23.9 percent, while secondary market transactions climbed 20.3 percent, indicating ongoing demand at various price points.
Apartments continued to dominate the market, making up 76 percent of all residential transactions. Jumeirah Village Circle led both off-plan and resale apartment sales, thanks to appealing pricing, strong rental yields, and accessibility to major roadways. Other areas reflecting strong secondary market activity included Business Bay, Dubai Marina, and Downtown Dubai, which are favored by investors and residents for their connectivity and proximity to amenities.
The villa market experienced significant growth, with transactions soaring by 80.6 percent compared to last year. This boom was largely driven by off-plan sales in newly developed, master-planned communities like The Valley, Emaar South, and Damac Islands. The total value of villa transactions increased by 55.1 percent, highlighting a rising preference for affordable, family-friendly housing options in Dubai’s outskirts.
Dubai’s luxury and ultra-luxury sector also maintained its growth trajectory. Sales exceeding Dh10 million grew by 29 percent from Q1 2024 and have increased 185 percent since Q1 2022. Areas like Palm Jumeirah and the new Palm Jebel Ali accounted for 31 percent of these high-end sales, reflecting demand for premium waterfront villas. Notable transactions included the Dh425 million sale of the Marble Palace in Emirates Hills and a Dh115 million villa in the EOME community of Palm Jumeirah, facilitated by Engel & Völkers Private Office Advisor Fadi Alsalem.
Dubai is increasingly recognized as a prime destination for high-net-worth individuals. According to Henley & Partners, the number of millionaires residing in the UAE has increased by more than 100 percent in the last decade, making it the top destination for HNWIs in 2023 and 2024. Currently, Dubai hosts over 81,000 millionaires, 237 centi-millionaires, and 20 billionaires, with these numbers expected to rise as global wealth seeks stable, high-performing locations.
The rental market in Dubai also demonstrated solid demand, with more than 51,000 new residents settling in the first quarter. While rent increases are starting to stabilize, luxury apartments in Bluewaters (+14.1 percent) and villas and townhouses in Dubai Hills Estate (+33.8 percent) and Arabian Ranches (+20.6 percent) reported substantial year-on-year growth.
Regarding commercial property, the sector continued its upward trend, with office, retail, and mixed-use segments all showing positive gains. Office sales transactions surged by 40 percent, with average prices per square foot increasing by 15 percent to Dh1,676. Business Bay and JLT retained their status as key hubs for Grade A office spaces, with 315 and 217 sales, respectively. Interest in off-plan options at Capital One has also positioned Motor City favorably as an office investment location in Q1. Retail sales saw a year-on-year increase of 6 percent, largely concentrated in thriving residential and mixed-use neighborhoods like Business Bay, Arjan, and JVC.
Leasing activity accelerated as well, reporting a 17.6 percent quarter-on-quarter increase in the commercial sector. Office rents rose by 23 percent year-on-year to Dh112 per square foot, primarily driven by demand in core business districts such as Business Bay, JLT, and Dubai Investments Park. Retail rents were stable at Dh240 per square foot, but growing interest in Grade A spaces indicates potential upward pricing pressures in the latter half of the year.
“Despite global economic uncertainty, Dubai’s real estate sector showcases strong fundamentals, characterized by growth across various sectors and attractive returns for investors,” stated Daniel Hadi, CEO of Engel & Völkers Middle East. “Demand is not only supported by regional wealth and migration but also by strategic policies, infrastructure investments, and the city’s global positioning as a forward-looking hub for living and business.”
Recent announcements regarding infrastructure developments—including the acceleration of the Etihad Rail project, the introduction of the Dubai Loop system, and significant road upgrades in business zones—are anticipated to enhance the city’s competitive position further.
Major commercial projects set for Q1 2025, such as the Dh5 billion redevelopment of the Mall of the Emirates, reflect a strong level of confidence from Dubai’s leading developers in the long-term viability of the city’s retail and consumer sectors.
As Dubai continues to draw global investors, business leaders, and new residents, Engel & Völkers maintains a positive outlook for the remainder of 2025. “From high-end residential to commercial real estate, Dubai is increasingly regarded as a safe haven for investment and a high-performance market rewarding long-term vision,” Hadi added.