42,000 sales transactions worth AED114.4 billion in Q1 2025, with Jumeirah Village Circle leading the way
590 properties sold for AED20 million and above
Surge in project completions anticipated over next two years
Dubai, 4 June 2025 – Dubai will add 73,000 new units to its residential real estate inventory this year – with 300,000 coming to the market by the end of 2028, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell.
More than 180,000 will be delivered in 2026 and 2027, when a surge in project completions is expected, the company said.
Cavendish Maxwell’s latest Dubai Residential Market Performance Report shows that in Q1 2025:
- AED114 billion worth of properties were sold across 42,000 transactions
- Off-plan sales dominated, with 70% share
- Apartments accounted for 75% of transactions but villas and townhouses gained traction
- Sales transactions dipped 10% on Q4 2024, owing to fewer new launches and reduced activity during Ramadan and Eid. However, there was a 23% increase in sales compared to the same period last year
- Prices reached AED1,535 per sq ft – up 2.8% quarter-on-quarter and nearly 16% higher than in Q1 2024
- 590 homes sold for over AED20 million, with almost 60 properties commanding AED50 million or more, showing sustained interest in the luxury and ultra luxury sectors
- Jumeirah Village Circle saw the highest number of project completions and apartment sales: over 4,330 units delivered, almost 2,200 off plan sales and 1,132 secondary market transactions
Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell, said: “Dubai’s property market is on track for a modest annual increase in terms of sales volumes and values, but there are indications that prices are beginning to stabilise. 2025 began with a brief dip in prices per sq ft, followed by a steady recovery. While prices are still on the up, the pace is showing signs of slowing down. For example, the average quarterly price increase for 2023 and 2024 was 4%, compared to a 2.8% rise in Q1 this year against Q4 2024.
“With a weakened US dollar, strong rental returns and appealing yields, Dubai continues to attract local and international property investors. We expect this trend to continue throughout the year.”
Sales transactions and volumes
Off-plan sales in Q1 reached a value of AED77.5 billion across 29,000 transactions, accounting for 70% of property sales and marking an increase of 32% on the same period last year. With 13,200 sales secured, the secondary market saw a 6.6% rise in transactions against Q1 2024.
Apartments sales dominated, making up more than three in every four transactions (76%), with townhouses at almost 17% and villas just over 7%. However the apartment market share is starting to shift, driven by demand for more space as families look to settle in Dubai for the long term. In addition, investors are increasingly targeting larger properties, in recognition of their rental potential to families and long-term residents. Apartment sales market share was down 4.8% on Q4 2025 and 6.1% on Q1 2024. In contrast, townhouses’ market share was up 3.2% quarter on quarter and 4.9% year on year, with villas also gaining traction, up 1.6% and 1.2% respectively.
Robust demand for luxury living
Dubai’s luxury and ultra luxury property markets remain strong, reinforcing the city’s status as a global destination for top-end real estate. Close to 600 properties sold for AED20 million or more in Q1, up from 480 in the same period last year. Almost 60 homes sold for AED50 million. Off-plan property sales accounted for 67% of luxury transactions and nearly a third of ultra luxury sales.
“Demand from high-net-worth-individuals is fuelled by Dubai’s favourable tax policies, long term residency incentives and global connectivity, said Ronan Arthur. “And while the ultra-luxury segment – properties valued at AED50 million or more – has limited supply, transaction volumes continue to show steady performance. Despite quarterly fluctuations, this segment remains stable, solidifying its position as a niche investment class for elite buyers from the UAE and internationally.
JVC top area for project completion and upcoming supply
Jumeirah Village Circle outperformed all other areas in terms of project completion, accounting for more than 2,433 of the total 9,300 completions in Q1. In second place was Mohammed Bin Rashid City (1,037), followed by Business Bay (743), Downtown Jebel Ali (647) and Rukan (636). JVC is also top of the upcoming supply chart, with nearly 27,100 units due to come online between now and the end of 2028. Next are Business Bay (19,470), Azizi Venice (17,100), DAMAC Lagoons (10,730) and Arjan (9,750).
Apartments accounted for almost 80% of all projects completed from January to March this year. In the same period, 95 real estate projects, which will deliver nearly 28,600 new units, were launched.
Top five locations for apartment and villa sales
JVC also commanded the top position for apartment sales in Q1, with 3,330 sales, including nearly 2,220 off-plan. Next for off-plan were Dubai Residence Complex, Business Bay, Expo City and Dubai Marina. Business Bay, Dubai Marina, Downtown Dubai and International City also made the top five areas for secondary sales.
Transactions for off-plan villas and townhouses were highest in DAMAC Islands, with 1,430 sales, followed by The Valley, DAMAC Hills 2, Villanova and DAMAC Lagoons. Meanwhile, DAMAC Hills 2 led the way for secondary sales (318), followed by Al Furjan, Emirates Living, Reem and Jumeirah Village Circle.
Robust rental yields … but growth rates slow
Q1 residential rents were up 14.4% on the same period last year. However, the quarterly increase was the lowest in the last two years, with a rise of 1% compared to Q4 2024, against previous quarterly increases ranging from 2% to 6%.
Ronan Arthur commented: “This slower pace of growth could be partly driven by the influx of new units delivered in the first three months of the year, as well as the Dubai Smart Rental Index, introduced at the beginning of the year, which is likely to influence tenant expectations and price adjustments. With additional supply on the way, monitoring how rental trends evolve in response to increasing inventory and a shifting, regulatory framework will be crucial.”
At the end of March 2025, average gross rental yields in Dubai stood at 7.3% for apartments and 5% for villas and townhouses, with return on investment remaining relatively stable and continuing to outperform many global markets.
Dubai Investments Park was top for rental yields, at 10.3%, followed by International City (9.1%), Downtown Jebel Ali (9%), Dubai Production City (8.6%), Dubai Silicon Oasis (8.5%), Dubai Sports City (8.4%), Liwan and International City Phase 2 (both 8.2%).
Industrial City led the villa and townhouse yield chart at 6%. Next were Jumeirah Village Circle (5.9%), Damac Hills 1 and 2 (both 5.7%), International City and Serena (both 5.5%), Mudon and Villa Nova (both 5.4%) and Dubai Hills Estate at 5.3%.
