Dubai Residential Transactions Hit Dh139.2 Billion In Q1

(MENAFN- Khaleej Times) Dubai's residential market is entering a more selective phase, with buyers still active but increasingly focused on pricing, quality and long-term value, a report showed on Tuesday.

According to betterhomes, Dubai's residential market recorded 44,493 residential transactions in Q1, up 4 per cent year-on-year, while total transaction value rose 21 per cent to Dh139.2 billion. Transaction volumes declined 17 per cent quarter-on-quarter, reflecting slower decision-making in March rather than a loss of underlying demand.

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Off-plan remained the strongest driver of activity, accounting for 68 per cent of total transactions. Off-plan volumes increased 20 per cent year-on-year, while off-plan transaction value rose 35 per cent. Secondary transactions declined 19 per cent year-on-year, pointing to greater pricing sensitivity in the ready market.

Louis Harding, CEO of betterhomes, said:“Given the regional developments in March, some moderation in decision-making was expected. What matters is that the underlying data still points to a resilient market. Transactions were up 4 per cent year-on-year, while total value increased 21 per cent to Dh139.2 billion. Activity has become more measured, but capital continues to move, which points to a market becoming more disciplined rather than losing momentum.”

Buyer behaviour reflected the same shift. Enquiries declined 18 per cent year-on-year, but demand moved towards larger, higher-value homes, with villa and townhouse enquiries rising 15 per cent, while apartment enquiries fell 31 per cent. Investors accounted for 57 per cent of transactions, up from 50 per cent in Q1 2025.

In this regard, Indian developer Casagrand has officially commenced construction work on Casagrand HERMINA at Dubai Islands.

While this is Casagrand's first project in Dubai, the developer brings more than two decades of experience and a track record of over 160 delivered developments across India.

Luthfullah K, Director, Dubai, Casagrand, said:“What makes this phase especially exciting is the strength of investor confidence behind it. We are seeing clear conviction in both the asset and the market, with decisions being driven by quality, location, and developer credibility. The rise in bulk acquisitions and repeat participation reflects that confidence in a very tangible way.”

Dubai Islands continues to strengthen its position as a key growth corridor, supported by major infrastructure investment, improving connectivity, and rising demand for waterfront communities. The area is increasingly defined not only by its investment fundamentals, but also by a lifestyle centred on coastal living, open spaces, and urban connectivity.

A clear trend emerging is the rise in bulk acquisitions, with investors securing multiple units as part of long-term portfolio strategies, reflecting confidence in both the asset and Dubai's fundamentals.

The project remains on track for Q2 2028 completion.

The prime segment continued to outperform, with transactions above Dh15 million rising 43 per cent year-on-year to 1,214 deals, supported by an 84 per cent increase in off-plan prime transactions.

Leasing became more competitive. Enquiries increased 7 per cent year-on-year, but transactions declined 5 per cent year-on-year and 26 per cent quarter-on-quarter, as increased supply and more selective tenant behaviour slowed deal conversion. Underlying demand remains present, but new-let apartment prices across prime communities have declined 10–20 per cent year-on-year, creating a gap between what existing tenants are paying and what new tenants are negotiating. March saw the sharpest adjustment, with enquiries falling over 40 per cent month-on-month, shaped by seasonal factors and regional developments.

betterhomes said the market is not weakening, but maturing, with performance across sales and leasing increasingly shaped by pricing discipline, product quality and strong positioning.

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