Dubai’s thriving real estate market showed no signs of slowing down in February 2025, with transactions reaching an impressive AED 51.1 billion ($13.9 billion), according to the latest data from Property Finder. This represents a significant 55% increase compared to the same period last year.
Transaction Overview
The month saw approximately 16,099 property transactions, marking a 35% year-on-year increase. The ready property market accounted for 6,997 of these transactions, up 27% from February 2024, with values increasing by 53%.
Several key areas dominated the market:
· Burj Khalifa led with AED 3.1 billion ($844.2 million) across 334 deals
· Al Yelayiss 1 experienced a remarkable jump in transaction value from AED 96 million ($26.1 million) to AED 2.4 billion ($653.5 million)
The off-plan market performed exceptionally well, with transaction values increasing by 57% to reach AED 20.2 billion ($5.5 billion) compared to AED 13 billion ($3.5 billion) in February 2024.
Dubai Islands: The New Luxury Frontier
One of the most exciting developments in Dubai’s real estate landscape is the continued progress of Dubai Islands, a cluster of five islands spanning 17 square km located off the coast of Deira.
Rising Interest and Prices
The Dubai Islands project is experiencing a perfect storm of favourable conditions:
· Increasing developer activity with new luxury project launches
· Steady price appreciation in both new launches and secondary market
· Growing investor interest, particularly in the luxury segment
Market experts note that starting prices for properties in Dubai Islands have increased by 30-50% compared to 2024, depending on the amenities, property type, and luxury features included.
Current Pricing Trends
New luxury developments in Dubai Islands now typically command between AED 2,000-2,500 per square foot (PSF). At these price points, they still offer relative value compared to other established luxury areas like Palm Jumeirah, city centre locations, or Dubai Hills.
Unique Design and Features
Dubai Islands stands apart from previous island developments in the emirate thanks to its distinctive design approach. The master plan, which replaced the earlier Palm Deira concept, was unveiled in 2022.
Key features of the development include:
· Five distinct islands covering 17 square km
· More than 60 km of scenic shorelines
· Over 20 km of pristine beaches
· Phased development approach allowing for strategic completion of different sections
· The new ‘Infinity Bridge’ connecting the islands to the mainland
· Seamless connectivity between islands via bridges and waterfront transportation options
Super-Luxury Segment Growth
Dubai Islands is likely to become a major hub for ultra-luxury properties, with an increasing number of homes valued at $10 million or more expected to enter the market.
The development is already generating significant interest among ultra-high-net-worth individuals seeking beachfront luxury properties. Real estate agencies report growing inquiries specifically for high-end waterfront homes in this area.
Market Outlook for 2025
Dubai Islands and Dubai South/Expo City will lead the market in terms of new project launches by the end of 2025. Both areas represent opposite ends of the city but share strong growth potential.
The phased development approach of Dubai Islands is expected to help maintain property values, with significant price appreciation likely as the first residential units approach completion.
As infrastructure and building projects progress, the Dubai Islands development is positioned to further solidify Dubai’s reputation as a global luxury real estate destination, offering a unique combination of island living, premium amenities, and strategic location within one of the world’s most dynamic cities.
