The real estate market in Dubai continues its impressive momentum in 2025. Anyone who thought that a slowdown was imminent after the record year of 2024 is (so far) mistaken: according to the Dubai Land Department, over 42,000 transactions with a total value of around AED 114 billion were registered in the first quarter - an increase of 29% compared to the previous year.
Off-plan remains king - but with risks
The growth in the off-plan segment is particularly striking: with almost 25,000 transactions, a new record was reached here. Buyers are therefore continuing to focus heavily on projects under development. This indicates a high level of confidence in Dubai's long-term development - but also harbors risks, especially if delivery delays or risky speculation by investors become more frequent. We are observing that buyers are taking an increasingly close look at which developers they are working with.
Owning instead of renting - a trend with a signal effect
An interesting shift can also be seen on the rental market: the number of new rental contracts is declining, while more and more people are opting to own. This can be seen as a maturing process on the market - or as a warning signal that rents are simply no longer affordable for many people.
Luxury boom vs. reality of life
Yes, the market is booming - especially in the upper price segment. Luxury villas, branded residences and "lifestyle living" are still in demand. At the same time, more and more residents are saying that they feel left behind by the price trend. Growth alone is not synonymous with sustainability.
Conclusion - it remains exciting
Dubai remains one of the most exciting real estate markets in the world - innovative, fast-growing, but also challenging. Now is the right time for investors to take a closer look, put quality above hype and network with experienced partners. Because even in the desert state, not all that glitters is gold.