Is This the Stability We Have Been Waiting For? Q1 Hints At a Maturing Market

Dubai, UAE - [Friday, 4th April 2025] Dubai’s real estate market continues to demonstrate its resilience and unstoppable momentum, reporting significant growth in the first quarter of 2025. Data from the Dubai Land Department (DLD) revealed a substantial 29% year-on-year increase in total sales value, reaching AED 114 billion. This impressive result was further underscored by a 23% surge in sales volume compared to the same period in 2024, firmly reinforcing Dubai as a leading global investment hub.

These trends are mirrored, and in some areas, exceeded by data from Allsopp & Allsopp, reporting a 58% year-on-year increase in total sales transaction value for the first quarter of 2025. Notably, Allsopp & Allsopp also recorded a 7% rise in sales volume compared to the final quarter of 2024, suggesting a sustained upward trend. While quarterly data did not present any dramatic shifts, it subtly hints at a market entering a phase of greater stability and maturity - a significant development for Dubai’s property sector.

Lewis Allsopp, Chairman of Allsopp & Allsopp said: “The 65% year-on-year increase in villa and townhouse sales is a clear indication of strong investor confidence and a desire for long-term residential opportunities. Whether you’re looking for a family home or a strategic investment, this is the moment to take advantage of Dubai’s market”

The sustained growth in sales activity is also influencing the rental landscape. While rental prices have seen upward pressure in recent years, the data suggests a potential shift. The DLD reported an average sales price of AED 2.7 million in Q1 2025, positioning homeownership as an increasingly accessible option for many. This is reflected in a 9% decline in rental contract renewals and a 19% drop in new rental contracts, according to DLD figures.

“While we don’t anticipate a sharp decline in Dubai rental prices in the immediate future, the increasing move towards homeownership is a notable trend” said Lewis Allsopp, Chairman of Allsopp & Allsopp. “The 13% decrease in rental transaction volume suggests a potential recalibration of the rental market and this could lead to more stability as supply adjusts to demand and landlords adapt.”

Q1 2025 real estate data shows strong sales activity and the emergence of a more mature and stable phase. The shift towards homeownership is reshaping the rental landscape, presenting new dynamics for both buyers and renters in the months ahead.

Key data points:

• 58% increase in sales transaction value year-on-year (Allsopp & Allsopp)
• Average price increased by 31% in quarter one 2025 (Allsopp & Allsopp)
• 43% increase in quarter one for villa/TH sales transaction volume (Allsopp & Allsopp)
• 29% hike in total sales transaction value year-on-year (Dubai Land Department)
• 19% decline in new rental renewal contracts in quarter one (Dubai Land Department)

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