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Offplan transactions drive Dubai real estate growth in first quarter
Market projections suggest that property prices are expected to increase by 5-10% this year
- PUBLISHED: Sun 13 Apr 2025, 5:19 PM
Dubai’s real estate sector continued its strong momentum in 2024, with off-plan properties driving significant growth, data showed.
According to data from Betterhomes, the emirate saw a 35.5 per cent increase in real estate transactions throughout the year, solidifying its status as a leading investment hub.
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Off-plan properties have been a significant contributor to this growth, with 24,920 transactions in Q1 2025, up from 20,006 during the same period last year, according to an analysis by Springfield Properties.
Indian investors maintained their dominance, increasing their share from 19 per cent in early 2024 to 28 per cent in early 2025, Betterhomes data shows. Mexican investors, who were absent in early 2024, surged to represent 11 per cent of transactions in early 2025, highlighting growing interest from Latin American markets. Pakistani investors also saw slight growth, moving from 10 per cent to 11 per cent.
Investor diversity expanded in early 2025, with Jordanian, Canadian, Lebanese, Moroccan, Egyptian, Austrian, UK, Albanian, and Italian buyers each accounting for 6 per cent of transactions, demonstrating broadening international interest.
The sustained demand for off-plan properties is driven by competitive pricing, flexible payment plans, and strong capital appreciation potential. Iconic developments such as The Valley by Emaar, Dubai Creek Harbour, and Sobha One remain top investor choices, with select phases selling out rapidly upon launch.
According to Springfield data, Dubai’s real estate sector recorded a total transaction value of Dh114.08 billion in the first quarter, marking a 29.19 per cent increase compared to the same period in 2024, with 42,269 transactions completed — a 23.11 per cent rise year-on-year.
The ready market saw notable gains, with transaction values increasing from Dh43.9 billion in Q1 2024 to Dh60.2 billion in Q1 2025.
The rental market has mirrored this upward trend, with average rents per square foot rising by 14 per cent, from Dh71 to Dh81. Notably, Dubai South and Al Furjan led this growth, posting increases of 26.37 per cent and 21.56 per cent, respectively.
“The sustained growth in Dubai’s real estate market reflects a strategic alignment with the emirate’s long-term vision for economic diversification and urban development. The significant uptick in both off-plan and ready property transactions underscores the confidence investors have in Dubai’s robust regulatory framework and its commitment to infrastructural excellence,” said Farooq Syed, CEO of Springfield Properties. “As we progress through 2025, the market is poised to offer further opportunities, driven by innovative developments and policies that continue to attract both regional and international investors seeking stable and lucrative returns”.
Market projections suggest that property prices are expected to increase by five per cent to 10 per cent throughout 2025, supported by the anticipated delivery of approximately 72,365 residential units. Dubai’s evolving landscape continues to attract investors seeking long-term value in a market characterized by its resilience and strategic growth initiatives.
Dubai’s investor-friendly policies, strategic location, and world-class infrastructure continue to attract global buyers. "As 2025 unfolds, the off-plan market remains a promising avenue for investors seeking long-term gains in a dynamic and thriving real estate environment," a Betterhomes statement said.
Somshankar Bandyopadhyay is a News Editor with more than three decades of experience. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.
