Dubai’s real estate sector has commenced 2025 with remarkable momentum, showcasing significant growth in both transaction volumes and values. According to the latest Betterhomes report, the first quarter witnessed a 23% year-on-year increase in total property sales transactions, reaching 42,422 deals in Q1 2025. The cumulative value of these transactions escalated by 29% compared to the same period in 2024, amounting to AED114 billion.
Villas Steal the Spotlight: 65% Transaction Growth in Q1 2025
The villa segment emerged as the star performer, with 10,185 transactions (up 65% YoY) and a 56% surge in value to AED53.4 billion. Limited supply and growing demand for spacious, family-friendly homes drove average villa prices up by 92%, far outpacing apartments, which saw a 14% transaction increase to 32,237 deals.
Prime areas like Palm Jumeirah, Emirates Hills, and Downtown Dubai dominated luxury sales, with secondary market transactions above AED15 million soaring 77% as buyers prioritized move-in-ready properties over off-plan speculation.
Townhouses also experienced a significant uptick in demand. Buyer leads for townhouses increased by 64% quarter-on-quarter, while leasing enquiries skyrocketed by 199% year-on-year. This surge reflects a shift towards multi-generational living and the desire for properties that offer both space and community amenities.
Off-Plan Market Remains Robust Amidst Shifting Preferences
The off-plan segment maintained its dominance, constituting 59% of all transactions with 24,942 deals—a 25% year-on-year increase. However, within the prime property category, a notable shift occurred. Off-plan transactions in this segment declined by 30%, while secondary market prime sales increased by 77%. This indicates a growing appetite for ready-to-move-in luxury properties among high-net-worth individuals.
Rising Prices and Mortgage Trends
Average selling prices across the market rose by 28%, with villas experiencing the most significant price movement—a 92% increase in average selling prices. Mortgage-backed purchases continued to grow, now comprising 57% of all Betterhomes sales. This trend highlights increased confidence among buyers in securing long-term investments in Dubai’s property market.
End-Users and Long-Term Residents Drive Market Dynamics
A shift in the buyer profile was observed during the first quarter, with end-users now representing 50% of the market—a 22% increase from the previous quarter. This change signifies Dubai’s evolution from a transient hub to a city where individuals and families are choosing to establish permanent roots.
Rental Market Growth and Multi-Year Contracts
The rental market also experienced substantial growth, with a 36% annual increase in tenant leads. The townhouse segment saw a 199% rise in leasing enquiries year-on-year, while apartment leads increased by 39%. Tenants are increasingly opting for multi-year rental contracts, seeking stability and better financial planning, which in turn benefits landlords through reduced turnover and vacancy periods.
Luxury Segment and Prime Locations
Luxury property transactions, particularly in the secondary market, continued to rise. Prime property transactions above AED15 million increased by 44% year-on-year, while secondary market sales in this category climbed 77%. Popular areas included Palm Jumeirah, Emirates Living, and Downtown Dubai, reflecting sustained demand for high-end residences in prestigious locations.
Future Outlook: Supply Meets Strategic Demand
While 7,848 units were delivered in Q1 2025, developers face pressure to balance supply with evolving buyer preferences. Analysts project 5–8% annual price growth in 2025, led by luxury and family-centric segments. Christopher Cina, Director of Sales at Betterhomes, emphasized resilience: “Dubai’s global appeal lies in its ability to blend opportunity with livability. The shift to end-users isn’t a trend—it’s a transformation”.
In alignment with the current market trends, MAK I’sola Bella project presents an exceptional opportunity for discerning buyers. Offering a collection of luxury villas and townhouses designed to meet the growing demand for spacious, high-quality residences, I’sola Bella embodies the essence of modern living in Dubai. With meticulous attention to detail, state-of-the-art amenities, and a prime location, this development caters to both end-users seeking a permanent home and investors aiming for robust returns.
As Dubai’s real estate market continues its upward trajectory, projects like I’sola Bella stand out as prime examples of developments that not only meet but exceed the expectations of today’s property seekers.