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Dubai property market experiences robust start to 2025 as January sales reach AED 44.4 billion

#International News#United Arab Emirates
Last Updated : 7th Feb, 2025
Synopsis

Dubai's real estate sector started 2025 on a strong note, registering AED 44.4 billion in property sales in January, marking a 24.1% increase in value compared to the same period last year. The market recorded 14,236 transactions, reflecting a 23.2% rise in volume. Land sales witnessed the most significant surge, with 811 plots sold for AED 8.6 billion. Villa sales amounted to AED 16.4 billion, increasing by 89.6% in volume, while apartment sales reached AED 18.2 billion, showing a 7.1% rise. Commercial property transactions also saw an uptick of 17.9%, totalling AED 1.2 billion. The data highlights Dubai's growing appeal as a prime real estate investment destination.

Dubai?s property market has started 2025 with impressive momentum, as January saw total sales reaching AED 44.4 billion, a notable 24.1% increase in value from the same month in 2024. According to a market update issued recently by f?m Properties, the number of transactions surged to 14,236, reflecting a 23.2% rise compared to January last year.


The most significant growth was observed in land sales, with 811 plots sold for AED 8.6 billion, marking a 151.9% month-on-month increase in volume. Villa sales also demonstrated substantial growth, totalling AED 16.4 billion, with 3,117 transactions?a sharp 89.6% rise from the previous year. Apartment sales, amounting to AED 18.2 billion, recorded a 7.1% increase in volume, reaching 9,945 transactions.

Commercial property transactions saw a 17.9% increase, with 363 deals amounting to AED 1.2 billion. Although the average price per square foot declined slightly by 4% to AED 1,550, it still represented an 81.2% rise over the past five years from AED 855 in January 2020.

Firas Al Msaddi, CEO of f?m Properties, stated that the figures reaffirmed Dubai?s strong and resilient real estate market, further solidifying its position as a secure and attractive investment hub for local, regional, and international investors.

Over the past five years, Dubai?s January property sales have escalated significantly, surging by 822% in value from AED 4.8 billion in 2020 to AED 35.8 billion last year. The most expensive property transaction in January was a luxury villa in Dubai Hills Estate, sold for AED 140 million, while the highest-priced apartment was sold for AED 57 million at Ava At Palm Jumeirah By Omniyat.

In terms of transaction type, first sales from developers outperformed resale transactions, accounting for 65% of the total volume and 60% of the total value. Properties priced above AED 5 million made up 9% of overall sales, while the AED 1-2 million category accounted for 31%, followed by 27% below AED 1 million, 20% between AED 2-3 million, and 14% between AED 3-5 million.

The top-performing areas in January included Wadi Al Safa 5 with 1,400 units, followed by Jumeirah Village Circle (982 units), Dubai South (942 units), Al Yelayiss 1 (868 units), and Business Bay (761 units).

Among off-plan apartments, the best-selling projects were Terra Heights (493 units worth AED 891.1 million), Verdes By Haven 1 (155 units worth AED 296.4 million), and Lacina (150 units worth AED 313.3 million). In off-plan villas, La Tilia At Villanova Phase 2 led the market with 106 units sold for AED 346.7 million. The ready apartment segment saw notable sales in Remraam (43 units worth AED 34.2 million), while the top-performing ready villa community was Reem - Mira Oasis Community Phase 2 with 10 units sold for AED 29.4 million.

The market's growth is driven by a combination of high-value land transactions, a thriving villa segment, and sustained demand for apartments. With substantial appreciation over the past five years, the emirate remains a top choice for investors seeking long-term gains and stability in the property sector.

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