Land Sales Lead Growth as Dubai Strengthens Its Position as a Prime Investment Destination

Dubai’s real estate market has started 2025 on a strong note, registering a substantial year-on-year increase in property sales.

According to a market update from fäm Properties, total property sales in January reached Dhs44.4 billion, reflecting a 24.1% increase in value compared to the same period last year. The number of transactions also surged to 14,236, marking a 23.2% rise in volume from January 2024, driven by continued demand across residential and commercial segments.

January 2025 Key Real Estate Highlights:

• Total sales: Dhs44.4bn (+24.1% YoY)
• Total transactions: 14,236 (+23.2% YoY)
• Land sales: Dhs8.6bn (811 plots sold, +151.9% MoM)
• Villa sales: Dhs16.4bn (+89.6% YoY, 3,117 units sold)
• Apartment sales: Dhs18.2bn (+7.1% YoY, 9,945 units sold)
• Commercial sales: Dhs1.2bn (363 transactions, +17.9% YoY)
• Average price per sq. ft.: Dhs1,550 (-4% YoY, but +81.2% over five years)

Land and Villa Sales Lead Market Growth

Land sales experienced the highest surge in January, with 811 plots sold for Dhs8.6 billion, reflecting a 151.9% month-on-month increase. Investor interest in both residential and commercial land remains strong.

Villa sales also saw a notable rise, reaching Dhs16.4 billion, an 89.6% increase compared to January 2024. Apartment sales totaled Dhs18.2 billion, marking a 7.1% growth in transaction volume.

Commercial real estate transactions climbed by 17.9%, with 363 deals totaling Dhs1.2 billion. Although the average price per square foot dipped by 4% from last year, it remains 81.2% higher than five years ago.

Investor Confidence and Market Stability

Firas Al Msaddi, CEO of fäm Properties, highlighted the resilience of Dubai’s real estate sector, stating that the strong January figures reaffirm Dubai’s reputation as a stable and attractive investment hub. The city continues to draw interest from local, regional, and global investors, reinforcing its long-term growth potential.

Five-Year Market Surge

Dubai’s property market has witnessed an 822% increase in value over the past five years. In January 2020, total sales stood at just Dhs4.8 billion across 2,700 transactions. Since then, market activity has grown steadily, reaching Dhs35.8 billion in January 2024 and surpassing Dhs44 billion in January 2025.

Notable High-Value Transactions

Luxury real estate remains in high demand:

• A villa at Dubai Hills Estate sold for Dhs140 million, making it the most expensive property transaction in January.
• The most expensive apartment was at Ava at Palm Jumeirah By Omniyat, selling for Dhs57 million.

Off-Plan Properties Dominate Market Activity

Off-plan property sales outperformed resales, with off-plan apartments comprising 65% of total transactions, while off-plan villas accounted for 60% of total value.

Top-selling off-plan projects included:

• Terra Heights – Dhs891.1 million
• Verdes By Haven – Dhs296.4 million
• Lacina – Dhs313.3 million

Meanwhile, in the ready property segment, Remraam and Rukan were among the most sought-after developments.

Top Performing Areas in January 2025:

• Wadi Al Safa 5 – 1,400 units sold
• Jumeirah Village Circle – 982 units sold
• Dubai South – 942 units sold
• Al Yelayiss 1 – 868 units sold
• Business Bay – 761 units sold

Dubai’s Real Estate Outlook for 2025

The robust growth in land, villa, and apartment sales, combined with Dubai’s strategic global positioning, indicates that the market is on track to sustain its momentum throughout 2025. With increasing investor confidence and a steady rise in property values, Dubai remains a leading destination for real estate investment.