Posted inReal EstateNews

Dubai sees Dh431 billion in H1 2025 real estate transactions

Residential sales alone reached Dh262.7 billion from 94,000 transactions, marking a 37% rise in value.

Dubai
Credit: WAM

Dubai’s property market posted strong growth in the first half of 2025, according to figures from the Dubai Land Department (DLD).

The value of real estate transactions rose 25% year-on-year to Dh431 billion, while volumes reached 125,538, up 26% from 99,947 in H1 2024.

Overall, more than 1.3 million real estate-related procedures, including sales, leases and other formalities, were recorded in the period.

Investor participation surged, with nearly 95,000 investors completing 118,132 deals worth Dh326 billion, a 39% increase from the same period last year. Of these, around 59,075 were first-time investors, contributing Dh157 billion, a 40% increase. Local residents accounted for 45% of new investors.

Notably, female investors executed 34,792 transactions totalling Dh73.2 billion, underscoring their growing market influence.

A breakdown by nationality shows that foreign investors led with Dh228.35 billion in investments, followed by Arab investors (Dh28.4 billion) and GCC investors (Dh22.56 billion).

Analysis of top-performing areas reveals Al Barsha South Fourth led in volume with 10,469 transactions, followed by Al Yalayis 1 and Wadi Al Safa 5. In terms of value, Dubai Marina topped at Dh25.1 billion, with Business Bay, Burj Khalifa and Palm Jumeirah trailing closely.

Residential sales alone reached Dh262.7 billion from 94,000 transactions, marking a 37% rise in value and a 23% increase in volume. Off-plan units accounted for 59% of all residential transactions. Villas saw a 55% jump in transactions, with prices in well-established villa communities rising by 19%.

Commercial real estate also surged, with half‑year sales up 38% to Dh58.6 billion.
Key drivers cited include robust investor confidence, a strong off-plan pipeline, rising local participation, and evolving regulatory support.

Looking ahead, Dubai plans to introduce approximately 73,000 new homes in 2025 as part of a broader expansion aiming for 300,000 additional units by the end of 2028. However, Fitch Ratings warns that a supply surge, with 210,000 units expected to be available through 2026, could prompt a 15% price correction.

Government initiatives, such as the 10-year Golden Visa, 100% foreign ownership, digital transaction platforms, escrow regulation, and proptech zones in the DIFC, are reinforcing market transparency and appeal.