Developments in Jumeirah Village, Dubai Marina and Business Bay drive investor interest

Dubai property sales surge 24% in January, values reach US$12bn

Dubai’s property market has hit the ground running in 2025, with total sales rising 23% year on year (YoY) in January to reach 14,238 transactions, generating AED44.4 billion (US$12bn) in sales receipts – up 24% compared to the same period in 2024.

The performance was driven in part by a surge in demand for completed properties, with sales transactions in this category reaching 6,918, up from 5,185 in January 2024, according to Dubai Land Department (DLD) data published by Property Finder.

Overall, the sector recorded a 32% increase in transactional volumes and a 41% surge in value compared to the previous year, reflecting the continued strength and appeal of Dubai’s real estate market to investors.

Off-plan sales up, values down

While the number of off-plan transactions rose by around 15%, accounting for 52% of all monthly transactions, transaction values fell 1.3% YoY to AED15.1bn, down from AED15.3bn in January 2024. The result marked the first decline in values for three years.

According to Property Finder, buyers showed a strong preference for apartments in January, with two-bedroom units leading the market, accounting for 37% of total sales, followed by one-bedroom units at 31%. Studios made up 15% of transactions.

Among the most sought-after locations for investment were Jumeirah Village, Dubai Marina, Business Bay, Downtown Dubai, and Palm Jumeirah.

Freehold changes pay dividends

Commenting on the market’s strong performance in January, Cherif Sleiman, chief revenue officer at Property Finder, highlighted the impact of new initiatives, including the DLD’s recent expansion of freehold ownership in Dubai. He noted that these changes are “reshaping the [real estate] landscape by unlocking new opportunities for investors and homeowners.”

As part of this initiative, the DLD has extended freehold ownership to 457 plots along Sheikh Zayed Road and in the Al Jaddaf area, allowing property owners of all nationalities to convert their properties to freehold status and secure perpetual ownership rights. This move is expected to further bolster investor confidence and stimulate long-term growth in Dubai’s real estate sector.

The move also aligns with Dubai's Real Estate Strategy 2033, which aims to bolster the emirate's position as a global economic hub and attract new investments. By enabling freehold ownership, the DLD said it sought to enhance the market value of properties in these strategic locations, thereby promoting long-term investment opportunities and economic growth.