The residential real estate market of Dubai is getting back to a more robust growth. Due to the completion of construction on new projects in the first quarter of 2025, 11,200 units have been added to the residential real estate market of Dubai. If developers sustain the current level of activity, 2025 might be a record year by the number of new projects commissioned in four recent years.

In the first quarter of 2025 the number of real estate purchase transactions exceeded 28,000, up 32% year-on-year, with off-plan housing accounting for 94% of the total number of transactions. The off-plan housing market of Dubai is recovering after a minor correction of prices in the second half of 2024. The weighted average price per square foot of real estate in Q1 2025 showed a growth of 8% (y/y).

On the rental market there is an ongoing trend of lessees giving preference to renegotiation of their already existing leases. For the recent 12 months, the growth of rental rates on new lease agreements reached 20%. Until the end of 2025, rental rates may further increase in the segment of quality housing, especially in properties with good location and developed infrastructure.