The UAE’s property market entered 2025 with strength on both fronts: Dubai achieved record-breaking results across off-plan and ready segments, while Abu Dhabi signaled a strategic pivot toward completed, move-in-ready properties.
Dubai: Record-Breaking Performance Across the Board
Dubai’s real estate market has seen a historic first quarter, recording its highest-ever Q1 performance in terms of both transaction volume and value.
- Transactions surge: Dubai recorded 45,474 sales transactions, up 22% year-on-year. Total transaction value rose 30% to AED 142.7 billion, compared to Q1 2024.
- Ready market breaks out: The ready property segment hit historic highs with 20,034 transactions worth AED 87.5 billion, marking a 21% increase in volume and a 34% rise in value.
- Off-plan still dominant: Off-plan deals accounted for 56% of all sales, reaching 25,440 transactions — a 24% increase year-on-year — with a total value of AED 55.2 billion, as investors continue to bank on Dubai’s development pipeline.
Abu Dhabi: Strategic Shifts Define the Market
While overall sales slowed in Abu Dhabi, the ready segment outperformed — suggesting a more mature, end-user-driven dynamic is emerging.
- Overall market cools: Abu Dhabi recorded 2,496 total transactions in Q1 2025, down 35% in volume and 24% in value year-on-year, totaling AED 9.6 billion.
- Ready segment gains momentum: Ready property sales rose 9% in volume and 76% in value year-on-year. The segment contributed 47% of total transactions, underscoring its growing role.
- Off-Plan pulls back sharply: Off-plan transactions dropped 52% in volume and 50% in value year-on-year, totaling 1,332 deals worth AED 4.9 billion. This decline was driven by fewer new project launches and seasonal slowdowns during Ramadan.
Key Insights
- Dubai’s off-plan market continues to attract investors, with substantial growth in both volume and value, marking the highest first-quarter performance in a decade.
- Dubai’s ready market also posted record-breaking results, driven by strong end-user demand.
- Abu Dhabi’s ready property market is emerging as a key driver, particularly for completed homes, showing strong year-on-year growth.
- Both cities benefit from investor confidence and a shift towards homeownership, particularly in the face of rising rents.
UAE Real Estate: A Smarter, More Inclusive Future
The UAE’s real estate market continues to evolve into a globally competitive and investment-friendly ecosystem. Initiatives like the Dubai Real Estate Alliance, spearheaded by the Dubai Land Department (DLD), are fostering collaboration between public and private sectors to enhance market dynamics. Additionally, DLD’s partnership with the Virtual Assets Regulatory Authority (VARA) to link the emirate’s real estate registry with property tokenization is a significant step forward. This integration enables fractional ownership of assets, broadening access and attracting a diverse range of investors.
Cherif Sleiman, Chief Revenue Officer at Property Finder, remarked, “This year remains strong, particularly in Dubai where investor confidence in long-term capital appreciation remains high. Abu Dhabi’s evolving buyer behaviour shows growing interest in quality, ready-to-move-in homes. From an international perspective, global policy shifts and the depreciation of the dollar are creating heightened interest in UAE real estate investment opportunities.”
These developments are collectively contributing to a smarter, more inclusive, and investment-friendly property market, positioning the UAE as a leading destination for real estate investment in the region.
Read the Full Report
For deeper insights and a comprehensive view of the trends shaping Q1 2025, explore the full Market Watch Digest Report.
Disclaimer: Market Watch Digest serves as a streamlined version of the comprehensive Market Watch report, available in the coming weeks, designed to provide a rapid snapshot of market performance over a specific period.
