UAE Q1 2025, Market Watch Digest Residential Real Estate Insights
• Abu Dhabi experienced a significant decline in total sales transactions (both residential and commercial) in Q1 2025. The total number of transactions for the quarter reached approximately 2,496, compared to 3,857 in Q1 2024, reflecting a sharp 35% year on year decrease.
• Meanwhile, the total transaction value dropped by 24%, amounting to AED 9.6 bn compared to AED 12.56 bn in the same period last year. This overall decline was primarily driven by the sharp drop in residential transactions, which accounted for 66% of the total transaction volume and 57% of the total value.
• Residential transactions—which include apartments, duplexes, residential buildings, townhouses, Villas, and Villa & townhouse plots—fell by 52% year-on-year, down to 1,640 transactions from 3,406 in Q1 2024. Consequently, the value of residential transactions declined by 48%, reaching AED 5.5 bn, compared to AED 10.6 bn in Q1 2024.
• The off-plan market in Q1 2025 registered approximately 1,332 off-plan sales transactions, reflecting a sharp 52% decline in volume compared to 2,791 transactions in Q1 2024. The value of these transactions also decreased by 50%, reaching AED 4.9 bn, down from AED 9.9 bn. Despite the overall slowdown, off-plan transactions accounted for 53% of total transactions during the quarter.
• Meanwhile, the total transaction value dropped by 24%, amounting to AED 9.6 bn compared to AED 12.56 bn in the same period last year. This overall decline was primarily driven by the sharp drop in residential transactions, which accounted for 66% of the total transaction volume and 57% of the total value.
• Residential transactions—which include apartments, duplexes, residential buildings, townhouses, Villas, and Villa & townhouse plots—fell by 52% year-on-year, down to 1,640 transactions from 3,406 in Q1 2024. Consequently, the value of residential transactions declined by 48%, reaching AED 5.5 bn, compared to AED 10.6 bn in Q1 2024.
• The off-plan market in Q1 2025 registered approximately 1,332 off-plan sales transactions, reflecting a sharp 52% decline in volume compared to 2,791 transactions in Q1 2024. The value of these transactions also decreased by 50%, reaching AED 4.9 bn, down from AED 9.9 bn. Despite the overall slowdown, off-plan transactions accounted for 53% of total transactions during the quarter.
Dubai Highlights
• Dubai’s real estate market continues to rank among the top-performing markets globally, with Q1 2025 witnessing a significant surge in total sales transactions. The transaction volume reached 45,474, marking a 22% year-on-year increase, while the total value rose by 30%, hitting AED 142.7 bn.
• The market maintained its positive momentum, with Q1 performance exceeding the quarterly average transactions for both volume and value in 2024. Notably, the transaction value in Q1 2025 was 9% higher than the average quarterly value recorded in 2024, underscoring the market’s ongoing strength and investor confidence.
• In Q1 2025, Dubai’s off-plan market continued to deliver outstanding performance, recording its highest first quarter performance in a decade, with off-plan sales accounting for 56% of total transaction volume.
• The number of off-plan transactions reached 25,440, up from 20,557 in Q1 2024, reflecting a 24% year-on-year increase, driven by strong long-term confidence among medium - and long-term investors.In terms of value, the off-plan segment also witnessed remarkable growth, with a 24% increase year-on-year, reaching AED 55.2 bn compared to AED 44.5 bn in Q1 2024. This represented 39% of the total transaction value in Q1 2025, highlighting the continued attractiveness of Dubai’s future development pipeline.
• The market maintained its positive momentum, with Q1 performance exceeding the quarterly average transactions for both volume and value in 2024. Notably, the transaction value in Q1 2025 was 9% higher than the average quarterly value recorded in 2024, underscoring the market’s ongoing strength and investor confidence.
• In Q1 2025, Dubai’s off-plan market continued to deliver outstanding performance, recording its highest first quarter performance in a decade, with off-plan sales accounting for 56% of total transaction volume.
• The number of off-plan transactions reached 25,440, up from 20,557 in Q1 2024, reflecting a 24% year-on-year increase, driven by strong long-term confidence among medium - and long-term investors.In terms of value, the off-plan segment also witnessed remarkable growth, with a 24% increase year-on-year, reaching AED 55.2 bn compared to AED 44.5 bn in Q1 2024. This represented 39% of the total transaction value in Q1 2025, highlighting the continued attractiveness of Dubai’s future development pipeline.
