Dubai and Abu Dhabi’s property markets posted a strong start to 2025, with robust performance across both off-plan and ready segments, according to the latest Market Watch Digest from Property Finder, the MENA region’s leading property platform.
Dubai sets new transaction records
Dubai’s real estate market reached unprecedented heights in Q1 2025, achieving its best first-quarter performance in over a decade.
The city recorded 45,474 sales transactions valued at Dhs 142.7 billion, marking a 22% year-on-year (YoY) increase in volume and a 30% surge in value.
This stellar performance was powered by record-breaking activity in both off-plan and existing property segments, reflecting growing confidence among investors and homebuyers alike.
Off-plan sales lead Dubai’s growth
Off-plan sales made up 56% of total transactions, soaring to 25,440 deals valued at Dhs 55.2 billion — up from Dhs 44.5 billion in Q1 2024. This represents a 24% increase in both volume and value, underscoring strong demand for future developments.
According to Property Finder, investor confidence in Dubai’s long-term capital appreciation is driving this momentum, as buyers continue to see the city as a top-tier global real estate destination.
Ready homes also break records
Dubai’s ready property market also saw a historic quarter, with 20,034 transactions valued at Dhs 87.5 billion, reflecting a 21% jump in volume and an impressive 34% increase in value compared to Q1 2024. This marks the highest-ever quarterly result for this segment, showing rising interest in immediate occupancy options.
The surge is likely influenced by rising rental prices, which are pushing residents to explore homeownership, further reinforcing the shift from renting to buying.
Abu Dhabi sees Spike in ready property sales
While Dubai was buoyed by both off-plan and ready sales, Abu Dhabi’s Q1 growth was driven by ready properties, particularly in the residential segment.
The capital recorded 2,496 total transactions worth Dhs 9.6 billion. Notably, the ready property segment accounted for 47% of this volume with 1,164 deals, reflecting a 9% rise in volume and a 75% increase in value compared to the same period last year.
Demand for move-in-ready homes rises
Residential ready transactions in Abu Dhabi made up 88% of the ready segment’s volume and 60% of its value. Compared to Q1 2024, this represents a 5% growth in volume and a 33% rise in value, pointing to a clear buyer preference for move-in-ready, high-quality homes.
The rest of the market was driven by commercial and mixed-use assets, indicating diversified interest across sectors.
Off-plan market in the capital remains steady
Abu Dhabi also recorded 1,332 off-plan transactions valued at Dhs 4.9 billion, showing moderate activity in this segment. Though not as dominant as in Dubai, the off-plan market remains an important part of the capital’s broader real estate landscape.
Market confidence remains high
Commenting on the findings, Cherif Sleiman, Chief Revenue Officer at Property Finder, said:
“This year remains strong, particularly in Dubai where investor confidence in long-term capital appreciation remains high. Abu Dhabi’s evolving buyer behaviour shows growing interest in quality, ready-to-move-in homes.”
He also noted that global policy shifts and a weakening US dollar are boosting international appetite for UAE real estate investments.
A smarter, more inclusive market
The UAE’s real estate ecosystem continues to benefit from supportive government initiatives. Notably, the Dubai Land Department’s Real Estate Alliance is enhancing collaboration between public and private sector stakeholders.
Additionally, Dubai’s partnership with the Virtual Assets Regulatory Authority (VARA) to enable property tokenisation and fractional ownership is seen as a game-changer, opening the door to a broader investor base.
“Together, these developments are helping build a smarter, more inclusive and investment-friendly property market,” Sleiman added.
Market Watch Digest (MWD) serves as a streamlined version of the comprehensive Market Watch report, available in the coming weeks, designed to provide a rapid snapshot of market performance over a specific period.
The data presented in MWD are preliminary and subject to change when compared to the detailed report. The definitive data will be available in the final version of Market Watch. Therefore, any discrepancies between MWD and the comprehensive report should be noted.
tanvir@dubainewsweek.com
