January Market Snapshot: Property Fever - Dubai's AED 33.9BN Start

Dubai's property market has kicked off 2025 with a bang, recording AED 33.9 billion in sales transactions in January alone. This is a huge 18% jump compared to January 2024, showing strong confidence from investors and buyers. With demand so high, could the undersupply of available properties lead to even higher prices?

Sales highlights:

• - Sales transaction volume: 75% month-on-month increase, contrasting with a 9% decline reported by the Dubai Land Department (DLD)
• - Finance buyers lead the market: 59% of transactions were finance purchases, reflecting growing mortgage reliance due to competitive interest rates and accessible loan options
• - Surge in AED 3-5M property sales: Doubled in January, driven by expats entering homeownership and a limited supply of villas
• - 86% increase in villa and townhouse prices: High demand and undersupply have prompted investors to act quickly.

Rental trends:

• - 30% climb in rental prices: Average rental price have increased month-on-month driven by rising demand, population growth, and limited rental stock
• - Villa and townhouse rental surge: Rental transaction volume jumped 108% month-on-month and 47% year-on-year, reflecting a preference towards larger homes and an influx of wealth to the country
• - Decline in rental transactions: 14% year-on-year decrease, with 30% of mortgage buyers in 2024 citing eviction notices as a key motivator for purchasing property
• - Flexible rental payments remain popular: 4+ cheques remained the most popular payment option (33%), followed by two cheques (28%) and one cheque (26%), mirroring December’s trends.

Dubai’s Continued Appeal

• - Thriving real estate market: A steady influx of expatriates is driving strong market demand
• - Investor opportunities: Gold, blue and green visas are available for long-term residency, creating attractive opportunities for investors
• - Strong economy and innovation: Dubai boasts a diversified economy beyond oil, including real estate, tech, AI, finance, and sustainability.

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