Dubai’s property market recorded over USD 31 billion in sales during the first quarter of 2025, with average home prices rising to approximately USD 735,000. These figures were revealed in the newly released Q1 2025 Property Market Report by Provident Estate.
According to the property management company, Dubai’s real estate sector witnessed substantial gains during the first three months of 2025. This growth has been attributed to increased investor confidence, a surge in off-plan transactions, and the momentum of ongoing urban development initiatives across the city.
Transaction volumes reached 42,273 during this period, reflecting a 50 per cent increase compared to the same quarter last year. This rise indicates a significant boost in market activity and investor interest. Total sales value climbed to AED 114.15 billion (USD 31.1 billion), showing strong capital inflows from both local and international buyers. The average sale price increased to AED 2.7 million (USD 735,000), reaffirming Dubai’s standing as a high-value and mature investment destination.
The off-plan sector continued to dominate, with over 25,000 apartments and nearly 6,600 townhouse and villa units recorded. Demand for premium housing remained strong, with villa prices growing by 13 per cent since Q3 2024, largely due to increasing interest in spacious, luxury homes. Off-plan apartments saw a significant price per square foot increase to AED 1,926 (USD 524), with studios and one-bedroom units proving most popular. Mortgage activity also gained momentum, with more than 26,000 mortgages issued across all property types including apartments, townhouses, and villas.
In terms of market trends, the demand for ready homes within the affordable and mid-range categories remained stable. One-bedroom apartments continued to lead the ready property segment, with Jumeirah Village Circle (JVC) seeing the highest number of transactions, followed by Dubai Marina and Business Bay.
Family-oriented buyers showed a preference for townhouses and villas in communities such as DAMAC Lagoons, DAMAC Hills 2, and Dubai Hills Estate, drawn by the promise of spacious and lifestyle-focused environments. Developers in the off-plan segment maintained momentum by offering flexible payment plans and appealing price points. Smaller apartments in growth areas like JVC saw high levels of registration, while four-bedroom townhouse layouts gained traction among families seeking long-term residences.
High-end off-plan villa projects such as The Valley and Palm Jebel Ali also achieved impressive sales during the quarter, underscoring the ongoing demand for premium developments in the emirate.
