Dubai Property Market Boom: Off-Plan Sales & Ownership Surge Fuel Record Growth to 2025

A boom in off-plan sales and a rise in ownership fuel Dubai’s property market

With fresh data suggesting a spike in off-plan and secondary sales as locals and foreign investors strengthen their ties to the city, Dubai’s real estate market has continued its incredible run until 2025.

Transactions increased 26% in the four months from May to August compared to the first four months of the year. 
This indicates that momentum is still growing even though August saw a seasonal slowdown.
Between May and August, the Dubai Land Department registered 75,519 real estate transactions, a significant increase over the 60,110 recorded during the January–April period. The summer pause caused transactions to decline 4.5% month over month between July and August, although analysts emphasize that the overall trend is still rising, driven by both robust foreign capital inflows and domestic demand. With off-plan activity making up 58% of transactions throughout the four months, compared to 52.7% in the previous months of the year, developers were able to draw in purchasers with flexible payment plans and alluring launch prices.
In August, 17,879 transactions totaling Dh42.4 billion, a 17% increase in volume and a 12% increase in value year over year, marked another milestone for Dubai’s residential market. Nearly three-quarters of all transactions were off-plan, which is a 25% increase over the previous year. The resale market also saw growth. Sales of four-bedroom and five-bedroom or larger homes increased 70% and 63%, respectively, over the same time period, indicating that larger homes were the most popular.

Both villas and apartments are becoming more and more expensive. Average prices in August were Dh1,664 per square foot, 16.3% more than the previous year, according to Property Monitor. Villas saw notable increases in lifestyle-driven developments, such as Arabian Ranches (23.2%), Dubai Hills Estate (26%), and Victory Heights (37%). Apartments also saw significant increase, with Jumeirah Village Circle (17%) and Jumeirah Village Triangle (22.3%) leading the way. Price resilience is maintained, according to analysts, by a mix of robust population growth, constrained supply in established areas, and Dubai’s status as a worldwide safe-haven city.
Dubai continues to provide some of the highest rental yields in the world to investors. Average gross yields in August were 6.76 percent, 7.12 percent for apartments, and 4.92 percent for villas. Yields continue to easily surpass those of prestigious worldwide cities like London (3–5%), Singapore (3–4%), and New York (5–7%), even in the face of double-digit price growth. More households are locking in ownership as a hedge against rising rents, while lease volumes have decreased by 4% this year and new contracts have decreased by 14%.

Demand is still varied and includes both locals and foreign investors. While domestic purchasers are propelling the resale segment, Indian, British, German, Egyptian, and Chinese.

Article by: 
 

Salah Omar

Associate Director

A1Properties.LLC