Dubai's real estate sector continues to thrive, with total transactions reaching AED 35.2 billion ($9.6 billion) across 13,043 sales in January 2025. This marks a 22.9% increase in transaction value and a 23.1% rise in sales volume compared to the same period last year, highlighting the market’s resilience and attractiveness to investors.

Key Drivers of Growth

Expansion of Freehold Ownership

One of the most transformative changes in Dubai’s real estate landscape is the conversion of properties along Sheikh Zayed Road and Al Jaddaf into freehold ownership. This shift is unlocking new investment opportunities, increasing liquidity, and boosting redevelopment activity. The move is expected to enhance long-term property values while broadening access for foreign investors.

Balanced Market Dynamics

Dubai’s property market continues to maintain a healthy mix of off-plan and secondary market transactions:

• Off-plan sales contributed AED 15.1 billion ($4.1 billion), driving new development activity.
• Secondary market transactions accounted for AED 20.1 billion ($5.5 billion), demonstrating market maturity and investor confidence.

This balance ensures market fluidity, with developers catering to both end-users and long-term investors.

Smart Rental Index Strengthens Stability

The Dubai Land Department’s Smart Rental Index is improving market transparency, allowing investors to better evaluate rental yields and long-term portfolio strategies. Dubai’s evolving rental framework is fostering stability, predictability, and investment confidence, reinforcing the city's position as a global real estate hub.

Diverse Market Appeal

Dubai’s real estate market continues to cater to a wide range of investors:

• Luxury Segment: Demand for ultra-prime properties remains strong, with Palm Jumeirah villas averaging AED 47 million ($12.8 million).
• Mid-Market Segment: Areas such as Jumeirah Village Circle and Damac Hills 2 remain popular among mid-tier investors, offering attractive affordability and rental yields.

The ability to accommodate diverse investor profiles has been a key driver of Dubai’s consistent market expansion.

Outlook for 2025 and Beyond

Dubai’s real estate market is well-positioned for long-term growth, supported by:

• Regulatory transparency and investor-friendly policies
• Ongoing infrastructure and redevelopment projects
• Sustainable development initiatives

With strong capital inflows from institutional investors and rising end-user demand, Dubai’s property sector is expected to maintain its upward trajectory, reinforcing the city’s status as a global leader in real estate innovation.