Dubai to Deliver 73,000 Homes in 2025 as Sales Reach $31 Billion

Dubai’s real estate market has surged into 2025 with strong momentum, reporting over 42,000 property sales transactions in the first quarter of the year. The total value of these deals reached approximately $31 billion, marking a 23% increase compared to Q1 2024.

Despite a 10% decline from the final quarter of 2024, the numbers signal sustained market confidence and robust investor interest.

73,000 New Homes Expected in 2025

Dubai is set to deliver nearly 73,000 new residential units this year alone. By the end of 2028, the emirate is projected to add over 300,000 new units, continuing its rapid urban expansion.

Off-Plan Dominance and Growing Buyer Demand

Off-plan sales dominated the market in Q1, making up 70% of total transactions, with approximately 29,000 deals valued at $21 billion—a 32% year-on-year increase.

The secondary market also held strong with 13,200 transactions, up 6.6% compared to Q1 2024.

Apartments accounted for 75% of all deals, but there's a growing appetite for larger homes. Townhouses captured 17% of sales, and villas made up just over 7%.

The average transaction price rose to $418 per square foot, a 2.8% increase quarter-over-quarter and nearly 16% higher than the same period last year.

Surge in Luxury and Ultra-Luxury Sales

Dubai’s luxury market recorded 590 transactions for properties priced over $5.4 million, compared to 480 in Q1 2024. Nearly 60 homes were sold for over $13.6 million.

Off-plan properties accounted for 67% of luxury sales and nearly a third of ultra-luxury transactions.

Top Areas for Completions and Upcoming Supply

Jumeirah Village Circle (JVC) led in Q1 completions with 4,330 units delivered. It also topped the sales charts with 3,330 apartment transactions, including over 2,200 off-plan sales.

Other key completion areas included:

• Mohammed Bin Rashid City: 1,037 units
• Business Bay: 743 units
• Downtown Jebel Ali: 647 units
• Rukan: 636 units

In terms of future pipeline (now through 2028):

• JVC: 27,100 units
• Business Bay: 19,470 units
• Azizi Venice: 17,100 units
• DAMAC Lagoons: 10,730 units
• Arjan: 9,750 units

Rental Market and Yields

Residential rents grew 14.4% year-over-year, although the 1% increase from Q4 2024 represents the slowest quarterly growth in two years.

As of March 2025, rental yields stood at:

• 7.3% for apartments
• 5% for villas and townhouses
• Top-yielding apartment areas include:
• Dubai Investments Park: 10.3%
• International City: 9.1%
• Downtown Jebel Ali: 9%
• Dubai Production City: 8.6%
• Dubai Silicon Oasis: 8.5%
• Dubai Sports City: 8.4%

Top villa and townhouse yields:

• Industrial City: 6%
• JVC: 5.9%
• DAMAC Hills 1 & 2: 5.7%
• International City & Serena: 5.5%
• Mudon, Villanova: 5.4%
• Dubai Hills Estate: 5.3%

Dubai remains a magnet for investors thanks to its stable returns, global connectivity, and investor-friendly environment. With thousands of new homes coming to market and luxury demand surging, 2025 is poised to be another record-breaking year for the emirate’s real estate sector.