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Dubai’s off-plan real estate sector continued its robust growth into Q1 2025, building on the momentum of 2024. Total off-plan sales transactions reached 24,920 in Q1 2025, a ~25% year-on-year increase from 20,006 in Q1 2024. Sales value likewise rose to AED 53.8 billion, up 21% from AED 44.4 billion a year prior. Although activity cooled from the record-high Q4 2024 (30,377 sales worth AED 61.7 billion), the market’s fundamentals remain strong.
Sustained Growth: Off-plan transaction volume in Q1 2025 climbed ~24.6% year-on-year, and total sales value grew ~21.3%, indicating healthy demand despite a seasonal dip from Q4’s peak.
Apartments Lead, Villas Surge: Apartments dominated with ~87% of Q1 2025 sales, but the villa and townhouse segments saw the fastest growth. Villa sales nearly tripled year-on-year (+176%), and townhouses jumped ~51%, reflecting broadening investor interest beyond apartments.
Price Trends: Average price-per-square-foot values appreciated across most asset classes. Villas and townhouses saw notable ppsf gains (villas up to 1,573 AED/sqft, +19% YoY; townhouses 1,249 AED/sqft, +16% YoY). Apartment prices per sqft held steady (~1,976 AED, flat vs. 1,975 AED a year ago) after a brief dip in Q4.
Shifts in Unit Preferences: Investors showed a preference for smaller units and mid-sized family homes. Studio and 1-bedroom units together accounted for ~59% of Q1 2025 transactions (14,697 sales), while sales of large 5+ bedroom properties declined, comprising under 1% of volume. Mid-size 3–4 bedroom homes saw rising demand, signaling a maturing market catering to both investors and end-users.
Overall, Dubai’s off-plan market in early 2025 exhibits strong growth momentum with increasing diversity in property types and price points. The following report provides a detailed quarter-by-quarter comparison of Q1 2025 vs. Q4 2024 and Q1 2024, with data-driven insights for global real estate investors.
In Q1 2025, Dubai recorded 24,920 off-plan transactions valued at AED 53.8 billion, reflecting strong growth from 20,006 transactions valued at AED 44.4 billion in Q1 2024. Although these numbers represent an ~18% drop from the exceptional Q4 2024 (30,377 transactions, AED 61.7 billion), this seasonal adjustment is typical, and the year-over-year figures highlight ongoing positive growth.
Quarterly Comparison Overview:
| Metric | Q1 2024 | Q4 2024 | Q1 2025 | YOY Change (Q1 2024-25) |
| Transactions | 20,006 | 30,377 | 24,920 | +24.6% |
| Total Sales Value (AED) | 44.4 B | 61.7 B | 53.8 B | +21.3% |
Apartments maintained their status as the dominant property type in Dubai’s off-plan market, comprising nearly 87% of total transactions in Q1 2025. Apartment sales rose by ~20% year-on-year, reaching 21,616 units in Q1 2025 compared to 18,055 units in Q1 2024. The average apartment price decreased slightly to AED 1.95 million from AED 2.09 million a year earlier, largely due to smaller average unit sizes, though the price per square foot remained steady at around AED 1,976.
Townhouses emerged strongly as a popular segment, with 2,502 sales in Q1 2025, reflecting a 51% increase from the previous year. The average townhouse price climbed to AED 3.15 million from AED 2.80 million, driven by sustained demand and limited supply. The average price per square foot rose significantly to AED 1,249, underscoring the segment’s attractiveness for buyers seeking affordability and family-friendly community living.
The villa segment showed exceptional growth, nearly tripling in transaction volume to 802 sales from 290 in Q1 2024. Interestingly, the average villa price fell to AED 4.78 million from AED 6.95 million due to an influx of smaller, more affordable units. However, the price per square foot surged by approximately 19% to AED 1,573, indicating strong underlying value appreciation in this segment.
Investors displayed distinct preferences, notably shifting towards smaller, investment-friendly units and mid-sized family-oriented properties:
The comparative performance of Q1 2025 highlights that Dubai’s off-plan real estate sector is not only growing but also maturing. Several indicators point to a market developing greater depth and resilience. For global investors, the strategic implications are clear: now remains an opportune time to invest in Dubai’s off-plan properties, as the market offers both growth potential and improving fundamentals.
Dubai’s pricing still appears reasonable in a global context, especially given the city’s world-class infrastructure and tax-free status. This suggests further room for growth. Demand is broad-based, creating sustained price growth versus volatile speculative spikes. Investors entering now could benefit from both construction-period appreciation and post-handover premiums if current trends continue.
From a financial investment perspective, year-on-year growth in sales value is translating into real price appreciation in key segments. This environment is ideal for making medium to long-term investments. Off-plan purchases now could appreciate significantly by completion. Market Confidence and Liquidity remain strong, signaled by robust quarterly sales, suggesting viable investment exit strategies and reduced volatility. Investors can be assured of a market driven by genuine housing demand and economic fundamentals.
Upcoming initiatives like long-term investor visas and the Dubai 2040 Urban Master Plan aim to foster sustained growth, further underscoring the strategic benefits of entering the market now.
In conclusion, Dubai’s off-plan real estate market in Q1 2025 exhibits a combination of high growth and improving maturity. Investors entering at this stage position themselves to benefit from Dubai’s ongoing growth story in a market increasingly behaving like a mature, global real estate hub.
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