Dubai's Realty Off To Strong Start With Dh35b First Month Sales

A notable trend in last month's performance is the dominance of off-plan properties, which accounted for a substantial 56 per cent of total sales. This enduring preference for newly launched projects illustrates strong buyer demand, a trend expected to persist throughout the year. Industry leaders such as Emaar, Sobha, Damac, and Danube have emerged as key players in the off-plan sector, capitalising on the appetite for innovative and modern housing solutions.

Despite the flourishing sales figures, the market did experience a slight price correction in January. The average price per square foot dipped by 0.57 per cent month-over-month, settling at Dh1,484. This modest adjustment follows a peak in December 2024, indicating a typical stabilisation phase rather than a downturn. The average selling prices across different property types were Dh1.75 million for apartments, Dh2.67 million for townhouses, and Dh7.18 million for villas, reflecting the diverse range of options available to buyers.

Betterhomes, a leading property brokerage, reported a 56 per cent increase in buyer leads compared to the previous month, signalling robust demand across the market. The majority of transactions were driven by mortgage financing, highlighting the growing role of investors and end-users in shaping market dynamics.

The most sought-after neighbourhoods for apartment buyers included Jumeirah Lakes Towers (JLT), Business Bay, and Dubai Marina. For villas, popular areas were Dubailand, Arabian Ranches, and Damac Hills 2. This trend points to a continued preference for well-established communities, which offer both lifestyle amenities and investment potential.

Looking ahead, the outlook for Dubai's property market remains extremely positive. According to Betterhomes' forecasts, developers are expected to complete a record 72,365 residential units in 2025, a staggering 171 per cent increase from the previous year. This surge in new supply is indicative of Dubai's ongoing urban growth and the commitment of developers to meet the demands of a rapidly expanding population.

The off-plan sector also thrived in 2024, with over 470 new projects launched, averaging more than one new project per day. Developers are increasingly focusing on sustainable and affordable housing options to cater to the diverse needs of the city's expatriate community and to align with global sustainability initiatives. In 2024, apartments made up 77 per cent of completions, with townhouses and villas comprising 17 per cent and 6.0 per cent, respectively. This trend towards vertical living is expected to continue as urbanization accelerates.

Key areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay remain focal points for both investors and end-users. The first quarter of 2025 will see significant handovers, particularly in Sobha Hartland, Arjan, and JVC, contributing to the market's vibrant activity.

Analysts said as the market stabilises and absorbs an estimated 163,000 new housing units between 2025 and 2026, prices are expected to remain stable, fostering a balanced market environment. While minor price fluctuations may occur, the underlying market fundamentals - bolstered by economic growth and strategic investments-are anticipated to maintain investor confidence.

“While minor price fluctuations are expected, the market fundamentals remain strong,” a senior analyst at Condor Developers.“With economic growth and strategic investments in infrastructure, investor confidence is likely to stay intact.”

“The introduction of new units will not only satisfy buyer demand but will also enhance the diversity of offerings in the market, catering to various segments from affordable housing to luxury villas,” he said.

Investor sentiment remains optimistic, supported by competitive financing options and favourable market conditions. The majority of transactions in January were driven by mortgage financing, indicating robust participation from both local and international buyers. According to Daniel Rogers, a leading property consultant,“Dubai's real estate market continues to attract global investors due to its strategic location, strong economic fundamentals, and a favourable regulatory environment.”