Dubai’s real estate market experienced a slight correction in January 2025, with prices dipping by 0.57%, the first decline since mid-2022. This adjustment signals a shift toward a more balanced market, according to insights from Property Monitor.
Despite the price movement, transaction activity remained strong, with 14,413 sales recorded, marking the highest January sales volume to date. Compared to December 2024, this reflected a 4.6% reduction, while the average price settled at AED 1,484 per square foot. The off-plan sector remained active, as 37 developers launched 53 projects, introducing 12,400 new units.
Market Trends Indicate Sustainable Growth
Mortgage activity remained on an upward trend, registering a 6.8% monthly increase, with 4,134 new loans issued. Loan-to-value (LTV) ratios held steady, even with stricter adherence to UAE Central Bank guidelines.
“After four years of continuous growth, Dubai’s real estate market is starting to show signs of stabilisation. While transaction volumes remain strong, affordability constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai’s property sector could be transitioning from rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the market’s future in 2025 and beyond.” – Zhaan Jochinke, COO at Property Monitor.
Current median property prices stand at AED 1.35 million for apartments, AED 2.61 million for townhouses, and AED 6.92 million for villas.
Off-Plan Sector Adjusts as Title Deed Sales Strengthen
Off-plan sales accounted for 52% of total transactions in January, recording 7,555 deals. However, activity in this segment softened, reflecting a 17.7% decline from December. In contrast, title deed sales gained momentum, increasing by 15.7% and comprising 47.6% of transactions.
Emaar Properties led the off-plan market with a 16.5% share, followed by DAMAC Properties at 15.8% and Danube Properties at 5.3%.
Among the top transactions, a villa in Emirates Hills achieved the highest sale at AED 425 million, while the lowest transaction was a studio in Dubai Production City forAED 175,000.
Dubai’s property market delivered an exceptional performance in 2024, registering a 30% year-on-year increase across prices, project launches, sales, and mortgage transactions. While activity remains high, current indicators point toward a more sustainable and measured market environment.
Article reference: Gulf Business.
