The Dubai real estate market commenced 2025 on a remarkable note, with sales volume and transaction values rising significantly when compared to the attended period. As the price trends vary among different types of properties, the market is dynamic and driven by the increased demand for villas. The sales of commercial properties and plots give the market stability.

SALES PERFORMANCE
Dubai Interact reports that the market saw 14,236 sales transactions in January that was 23.2% higher than January 2024. The total sales value gained a stunning AED 44.4 billion, showing that investor’s confidence is intact and the demand is rising. However, the average price per square foot fell by 4%, amounts to AED 1,500. It is clear from this that buyers are in favor of larger accommodations or the ones which are less expensive.

Land sales remained the standout performer with the highest January sales ever at 811 plots, which were sold at a price of AED 8.6 billion – marking 151.9% growth in just one month. This reflects growing demand for the land development sector and the possibility of long-term investment.

KEY HIGHLIGHTS

* Apartments: 9,945 sales, 17.1% from January 2024
Sales Value: AED 18.2 billion
* Villas: 3,117 sales, 89.6% from January 2024
Sales Value: AED 16.4 billion
* Commercial: 363 sales,17.9% from January 2024
Sales Value: AED 1.2 billion
* Plots: 811 sales, 151.9% from January 2024
Sales Value: AED 8.6 billion

The standout performer was land sales, which saw the biggest January spike yet, with 811 plots sold for AED 8.6 billion – a 151.9% increase in just one month. This indicates growing demand for land development and long-term investment opportunities.

PROPERTY PRICES

On the one hand, the demand for real estate spiked whereas, on the other hand, property prices showed uncertain tendencies in the various market sectors. An increase by 3.7% was registered in the apartment segment, taking the average to AED 1.4 million. The villas also went up in prices which shows the buyer are taking every chance they get in buying the same.

On the other hand, prices for commercial properties exploded with an amazing 34.6% growth, and the average price touched AED 1.7 million due to the increased business activity in Dubai.

RENTAL PRICES

Rental prices went up again as the high demand from tenants was too much:

* Apartments: AED 80K, 10.8% compared to January 2024

* Villas: AED 180K, 12.5% from January 2024

* Commercial: AED 73.5K, 56.4% from January 2024

The increase in rental prices, especially in the commercial segment, is a clear indication that businesses and people are in a tough competition to find suitable spaces in Dubai.