Dubai’s real estate market continues its strong momentum, recording over AED 4.78 billion ($1.3 billion) in transactions in just one day, according to the Dubai Land Department. This achievement underscores the emirate’s growing appeal among global investors drawn to its thriving business environment and diverse investment opportunities.

Recent market data from Engel & Völkers Middle East revealed a strong first quarter for Dubai’s property sector. Residential property sales grew by 22.4 percent year-on-year, with the total value sold increasing by 29.6 percent. This growth has been fueled by robust investor confidence, rising population figures, and a steady inflow of global capital. Commercial property transactions also rose by 18.2 percent, with a 29.5 percent rise in value.

Despite the typical seasonal slowdown from the previous quarter, Dubai’s residential market demonstrated broad-based growth. Off-plan sales climbed by 23.9 percent, while secondary transactions grew by 20.3 percent, reflecting sustained demand across various property segments.

Apartments Continue to Lead Market Activity

Apartments remained the dominant property type, making up 76 percent of all residential transactions. Jumeirah Village Circle led both off-plan and resale apartment sales, supported by competitive pricing, strong rental yields, and convenient access to major roads. Other key secondary market hubs included Business Bay, Dubai Marina, and Downtown Dubai, areas favored by investors and end-users for their connectivity and strong rental potential.

The villa segment also showed remarkable performance, with transactions rising by 80.6 percent compared to the previous year. The growth was largely driven by off-plan purchases in newly master-planned communities like The Valley, Emaar South, and Damac Islands. The total transaction value for villas increased by 55.1 percent, indicating a rising preference for affordable, family-oriented housing options in emerging suburban areas.

Luxury and Ultra-Luxury Segments Maintain Growth

Dubai’s luxury real estate market continued to perform strongly. Sales of properties valued above AED 10 million increased by 29 percent compared to Q1 2024 and have surged by 185 percent since Q1 2022. Palm Jumeirah and the emerging Palm Jebel Ali collectively accounted for 31 percent of these high-value sales, driven by strong demand for waterfront, ultra-luxury villas.

Significant transactions included the AED 425 million sale of the Marble Palace in Emirates Hills and an AED 115 million villa in the EOME community on Palm Jumeirah.

Dubai has firmly established itself as a leading destination for high-net-worth individuals (HNWIs). The city’s millionaire population has more than doubled over the past decade, with the UAE attracting the highest number of new HNWIs globally in 2023 and 2024. Today, Dubai is home to over 81,000 millionaires, 237 centi-millionaires, and 20 billionaires, and these numbers are expected to rise further.

Infrastructure Investments to Boost Long-Term Growth

Ongoing infrastructure developments are set to enhance Dubai’s attractiveness even further. Major initiatives include the acceleration of the Etihad Rail project, the introduction of the Dubai Loop system, and significant upgrades to road networks in business hubs. Additionally, the AED 5 billion redevelopment of the Mall of the Emirates reflects strong confidence among top developers in the resilience of Dubai’s retail and consumer sectors.

As global capital continues to flow into Dubai, the real estate market is expected to maintain its strong performance throughout 2025, positioning the city as a premier destination for investors, businesses, and new residents alike.