Engel & Völkers Midden -Oost, a leader in premium residential and commercial real estate services, you have released Stis Q1 2025 market reports, which confirms another striking quarter for the Dubai real estate sector. The sale of homes increased by 22.4% on an annual basis, by 29.6% increased in the total value sold, driven by strong investor sentiment, rising population figures and a steady stream of global capital to the emirate. The sale of commercial real estate rose by 18.2% YO, with an increase in the total value of transactions by 29.5%.
The usual seasonal DIP Q4, Dubai’s residential market for broad growth. Turnover outside the plan increased by 23.9% and secondary transactions increased by 20.3%, with a persistent demand between the price spectrum.
Apartments remained the dominant property type, in which 76% of all residential transactions were compressed. Jumeirah Village Circle retained its lead in off-plan and Estale apartments, supported by attractive prices, strong rental income and proximity to large road networks. Secondary market momentum was also clear in Business Bay, Dubai Marinaand Downtown Dubai -Key areas sought by investors and end users because of their connectivity, the proximity of facilities and sustainable rental demand.
The Villa segment was a clear highlight for growth, with transactions on an annual basis increasing by 80.6%. The Golf was mainly led by off-plan activity in emerging communities planned by the master such as De Valley, Emaar South and Damac Islands. The total transaction value for villas increased by 55.1%, indicating a growing preference for more affordable, family -oriented homes in newer developments on the edge of Dubai.
Dubai maintained his momentum in the luxury and ultra-luxury segment. Turnover above AED 10 million grew by 29% compared to Q1 2024 and has now risen 185% compared to Q1 2022. Palm Jumeirah and the rapidly emerging Palm Jebel Ali Battery for 31% of sales above AED 10 million, support for Ultra-Luxe-Luxe, Waterfront Vila’s. Remarkable deals include the AED 425 million sale of the Marble Palace in Emirates Hills and an AED 115 million villa in the Eome Community of Palm Jumeirah, Which Engel & Völkers private office advisor Fadi Alsalem mediated.
Dubai Continue to establish themselves as the world’s leading destination for individuals with high Netwaard. According to Henley & PartnersThe number of resident millionaires has grown by more than 100% over the past decade, with The VAE Attraction more HNWIs than any other country in 2023 and 2024. Nowadays Dubai is the home of more than 81,000 millionaires, 237 centi millionaires and 20 billionaires a figure that will rise as global wealth that struck to stable, high-perfororme destination.
The Dubai rental market also reflected the ongoing question, with more than 51,000 new inhabitants added in the first quarter alone. While the rental increases show signs of stabilization, luxury apartments in bluewaters (+14.1%) and villas and mansions in the Dubai Hills estate (+33.8%) and Arabic ranches (+20.6%) registered on an annual basis.
The commercial real estate continued its upward process, with segments of office, retail and mixed use all postal profits. The sales transactions of the office rose by 40%and the average price per square. Ft. Rose 15% to AED 1,676. Business Bay and JLT have held leading hubs again for office space of Grade A, with 315 and 217 sales respectively. Off-plan Interst in Capital One helps Motor City to position as a leading destination for office investment in Q1. Meanwhile, retail sales rose by 6% on an annual basis, with concentration in thriving residential and mixed pop communities such as Business Bay, Arjan and JVC.
The lease activity also accelerated, with a quarter on the commercial sector of 17.6% quarterly-on-quarter. Office rental prices grew by 23% on an annual basis to AED 112 per square meter. Ft., Led by the demand in core business districts such as Business Bay, JLT and Dubai Investments Park. While the retail rest remained stable at AED 240 per square meter. ft., increasing appettite for class A space suggests that an upward pressure can occur in the second half of the year.
“In the light of global economic uncertainty, the real estate market of Dubai remains excellent, with growth of the sector and common bonusing returns for investors,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “The question is not only fed by regional wealth and migration, but also by strategic policy, infrastructure investments and the global positioning of the city as a future hub for life and affairs.”
Recent infrastructure -Annoulets -Including the acceleration of the Ecihad Rail project, the rollout of the Dubai Loop system and strategic roadupgrades in central business zones -LE expected to further strengthen the city’s competitive advantage.
Important commercial projects shot correctly in Q1 2025Such as the AED 5 billion redevelopment of Mall of the Emiralates, Also becomes a strong confidence of Dubai’s top developers in the long-term resilience of the city’s retail and consumer sectors.
While Dubai continues to work worldwide research, business leaders and new residents and Engel & Völkers remain optimistic about the prospects for the 2025 remote control. Rewards Long-Term Vision, ”Hadi added.
