Land Deals Fuel Record-Breaking Q1 in Dubai Real Estate Market

Plot sales soar by 193.8% as total property transactions hit Dh142.7 billion—marking the second-highest quarterly result in the city’s history

Dubai’s property market has kicked off 2025 on a powerful note, posting its second-highest quarterly performance ever with sales totaling a remarkable Dh142.7 billion in the first quarter. This represents a 30.3% year-on-year increase in value and reflects Dubai’s sustained momentum as one of the world’s most dynamic and resilient real estate investment hubs.

According to a market update released by fäm Properties, the surge was driven in large part by a sharp increase in land transactions, which rose by 193.8% to reach Dh35.5 billion from 2,926 deals. Experts attribute this surge to rising scarcity of available plots and high demand for off-plan developments, resulting in fierce competition among developers.

“Plots for real estate development in Dubai are increasingly difficult to find, and this has led to land prices soaring in recent years,” said Firas Al Msaddi, CEO of fäm Properties. “Compared with COVID times, land prices have increased three or even four times in some areas.”

He added that only a slowdown in off-plan market activity would temper land prices. “Any decline in off-plan prices would have an immediate impact on land prices in Dubai.”

Record-Breaking Five-Year Growth

Dubai’s Q1 property sales have shown extraordinary growth over the past five years:

2020: Dh21 billion (9,800 transactions)
2021: Dh24.6 billion (11,600)
2022: Dh54.6 billion (20,200)
2023: Dh89 billion (31,100)
2024: Dh109.5 billion (37,000)
2025: Dh142.7 billion (45,485)

This year’s Q1 performance was only slightly behind the record-breaking Dh147.2 billion from Q4 2024, which recorded 50,218 transactions.

Segment Breakdown: Villas, Apartments, and Commercial Units

The property market’s growth was seen across various segments:

Villa sales climbed 43.1% YoY to Dh41.3 billion from 8,369 transactions.
Apartment sales rose 12.6% to Dh62.3 billion from 32,884 deals.
Commercial property sales grew 25.2% to Dh3.6 billion from 1,212 transactions.

The median price per sq ft in Q1 2025 also increased to Dh1,563, a significant jump from Dh889 in 2021, underscoring a consistent upward trend in property values.

Dubai’s Top Performing Areas in Q1

The most active neighborhoods in terms of transaction volume were:

Jumeirah Village Circle: 3,605 deals worth Dh4.56 billion
Wadi Al Safa: 3,596 deals worth Dh7.64 billion
Business Bay: 2,782 deals worth Dh7.27 billion
Dubai South: 2,676 deals worth Dh8.75 billion
Dubai Marina: 2,583 deals worth Dh9.28 billion

Among standout sales, a luxury villa in Dubai Hills Estate sold for Dh140 million, making it the most expensive property sold in Q1. The priciest apartment went for Dh116 million at The Rings 1 in Jumeirah Second.

Property Sales by Value

Dubai’s market continued to attract buyers across various price points:

Below Dh1 million: 26% (11,899 sales)
Dh1-2 million: 31% (14,242 sales)
Dh2-3 million: 19% (8,567 sales)
Dh3-5 million: 15% (6,837 sales)
Above Dh5 million: 9% (3,939 sales)

Developer Sales Dominate Market

The first quarter also saw developer (off-plan) sales outpace the secondary market:

65% of total sales volume came from first sales, versus 35% from re-sales.
In value terms, first sales accounted for 61%, compared to 39% from the secondary market.

Dubai’s Real Estate Momentum Shows No Signs of Slowing

“The consistent growth of recent years continues,” said Al Msaddi. “This sustained upward trend cements Dubai’s position as a prime real estate investment hub, drawing increasing interest from global investors alongside strong demand from local and regional buyers.”

As Dubai’s real estate market evolves, the intensifying competition for land and record-breaking investment figures show a city still very much on the rise. If current trends hold, 2025 could be the most monumental year yet for the emirate’s property sector.