What Q1 2025 Tells You About Dubai's Property Investment Potential

Dubai's property sector opened 2025 with its strongest first-quarter performance in over ten years. Between January and March, 45,474 transactions were recorded, reaching a combined worth of AED 142.7 billion. That's a 22% rise in transaction volume and a 30% jump in value compared to the same period in 2024 – a market in full stride.

“This kind of market activity demonstrates the strength of demand and depth of investor confidence we’re seeing across the board. The sharp increase in resale property values and the strong performance of the off plan segment shows both short-term confidence and long-term belief in Dubai’s real estate vision,” says Paul Christodoulou, CEO at AQUA Properties.

The resale property market achieved impressive quarterly figures, with 20,034 sales recorded, valued at AED 87.5 billion. This marks a 21% increase in transactions and a 34% rise in total value year-over-year. The results not only broke records but also surpassed the average figures from 2024 by 12% in volume and 19% in total value.

Resale property market share comprised nearly 44% of all deals in Q1. Strong demand from both residents and investors was largely driven by high rental costs, which encouraged more tenants to consider the long-term benefits of buying over renting.

"For some, these may just be numbers. However, for those involved in the market, they signify structural strength and growth. This speaks volumes about Dubai being one of the strongest investment opportunities globally," he added.

Prince Ufuoma, Director of Secondary Sales at AQUA Properties, further emphasised, "What we see in the secondary market isn't just growth—it's a clear reflection of changing lifestyle priorities and the urgency to purchase rather than rent."

Off plan properties accounted for 56% of overall transactions, with 25,440 deals recorded in this category. This represents a 24% increase compared to the same period last year, indicating rising investor confidence in Dubai's development pipeline. These transactions generated AED 55.2 billion, which is a 24% increase from last year's first quarter total of AED 44.5 billion. This segment contributed 39% of the market value, reaffirming interest in future-ready assets and newly launched projects.

Danyal Tirmazi, Director of Off Plan Sales at AQUA Properties, noted, "The off plan segment continues to exceed expectations, driven by investor trust in Dubai's development roadmap and the exceptional value of early-phase projects."

The strong Q1 performance reflects demand and Dubai's strategic positioning. Innovative government initiatives aimed at enhancing transparency, efficiency, and global appeal have significantly influenced the emirate's real estate market. A notable development is the Dubai Real Estate Alliance led by the Dubai Land Department (DLD), uniting public and private sectors to foster innovation and boost investor confidence.

Additionally, Dubai's collaboration with the Virtual Assets Regulatory Authority (VARA) enhances the market's attractiveness by focusing on property tokenisation, which aims to facilitate fractional ownership, lower barriers to entry, and broaden participation in real estate investments. 

As Dubai's real estate market progresses through 2025, strong growth is expected to continue, fueled by both off plan and secondary property sales. Progressive regulations and consistent market performance reinforce Dubai's global real estate hotspot status. 

Investors are currently presented with a unique opportunity to explore a variety of options, from luxury villas to more accessible apartments. For those interested in learning more, AQUA Properties has prepared a Q1 2025 Market Report. Download it for deeper insights into Dubai's real estate trends and investment potential. This report can help you enhance your understanding and capitalise on the opportunities available in the market.