Dubai’s real estate market is surging to unprecedented levels in February 2025, continuing its upward trajectory despite global economic challenges. With property sales volumes reaching Dh41 billion—a 17% month-on-month (MoM) increase—and nearly 15,000 transactions, Dubai is showing explosive growth in both investor activity and pricing.

Key factors driving this boom include the thriving economy, a steady influx of skilled expatriates, and government initiatives like the Dubai 2040 Urban Master Plan, which has spurred growth in sustainable, community-focused developments. As a result, Dubai’s population has risen 6% in just one year, and its GDP grew by 4.2% in 2024, outpacing global averages. These conditions are making Dubai an even more attractive global investment destination.

Record-high prices are also pushing the market to new heights. The average price per square foot has climbed to Dh1,505, a 1.41% increase from the previous month, and double the market’s low in 2019. The luxury segment, especially villas, is thriving, with villa prices skyrocketing by 60% MoM. Communities like Jumeirah Golf Estates and Dubai Marina are seeing some of the highest price increases.

Notably, off-plan properties are leading the sales, comprising 59% of transactions, signaling strong investor confidence. Key developers such as Emaar, Sobha Group, and Damac Properties are dominating this sector. International investors are also a significant part of the market, with Russians, Indians, and British nationals topping the list.

Rising rental prices are also driving a shift towards homeownership, with rental prices rising by 22% for apartments and 28% for villas in 2024. This has prompted a notable increase in long-term property investments, with end-users making up 53% of transactions, a shift from previous years when investors dominated.

Despite the rising prices, financing remains accessible, with mortgage transactions making up 64% of sales, partly thanks to low interest rates and attractive lending conditions. Analysts expect prices to increase further, projecting a 12-18% rise in 2025, bolstered by high-profile projects like the Dh30 billion Marsa Al Arab waterfront development.

With Dubai’s real estate market consistently redefining itself, it’s clear that the emirate's growth is far from over, making it one of the world’s most dynamic property markets.