Dubai’s real estate sector has commenced 2025 with an extraordinary performance, as January property sales skyrocket by an astounding 822% compared to five years ago, solidifying the emirate’s position as a global real estate powerhouse.
Total property sales in January reached a staggering AED 44.4 billion ($12.1 billion), representing a robust 24.1% year-on-year increase. According to a comprehensive market update released today, 14,236 transactions were completed last month, marking a significant 23.2% rise compared to January 2024.
In a surprising turn of events, land sales emerged as the unexpected star performer of the month. January saw 811 plots of land changing hands for a total of AED 8.6 billion ($2.3 billion), representing an unprecedented 151.9% month-on-month surge. This dramatic increase indicates a growing appetite for development opportunities in the emirate.
The residential sector also demonstrated impressive growth. Villa sales experienced a remarkable 89.6% increase, with 3,117 units sold for a total value of AED 16.4 billion ($4.5 billion) compared to January last year. Apartment sales showed steady growth as well, increasing by 7.1% to 9,945 units, with a total value of AED 18.2 billion ($5 billion).
Commercial real estate also performed strongly, with 363 transactions valued at AED 1.2 billion ($327 million), representing a 17.9% increase in transaction volume compared to January 2024.
While the average price per square meter experienced a slight 4% dip to AED 1,550 ($422), it still represents a substantial 81.2% increase over the past five years compared to January 2020’s AED 855 ($233). This trend suggests a maturing market with potential for sustainable long-term growth.
The explosive growth of Dubai’s real estate market over the past five years is evident in the January sales figures. Starting from a modest AED 4.8 billion ($1.3 billion) from 2,700 transactions in January 2020, the market has seen consistent year-on-year growth. By January 2024, sales had reached AED 35.8 billion ($9.7 billion) from 11,600 transactions, culminating in this year’s record-breaking performance.
The luxury segment continues to thrive, with notable transactions including the most expensive villa sold in Dubai Hills Estate for AED 140 million ($38.1 million) and the priciest apartment, Omniyat’s Ava at Palm Jumeirah, fetching AED 57 million ($15.5 million).
First-time sales by developers dominated the market, accounting for 65% of transactions by volume and 60% by total value, outpacing resales. The market showed a diverse range of price points, with the majority of transactions (31%) falling within the AED 1-2 million ($272,000-545,000) range. Properties valued over AED 5 million ($1.4 million) represented 9% of total sales, while 27% of sales were for properties below AED 1 million ($272,000).
