What To Know
- Analysts at property firm Savills say Dubai’s real estate sector is on a roll this year with a 23 percent year-on-year increase in transactions during Q1.
- Nonetheless, the outlook for 2025 is, nonetheless, positive because the appeal of Dubai continues to draw global residents and investors that search for long-term value, safety, and opportunities.
- Major areas such as Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons took up more than half of the quarter’s transactions and new launches.
Analysts at property firm Savills say Dubai’s real estate sector is on a roll this year with a 23 percent year-on-year increase in transactions during Q1. The trend indicates increased investor confidence, facilitated by Dubai’s lucrative Golden Visa program, tax-friendly environment and the high-quality lifestyle offered.
Sales off-plan accounted for the highest proportion of transactions (69%). We saw over 30 thousand new units, most of which were apartments, unveiled during the first quarter, more than twice the number reported in Q1 2024. Apartments pre-displayed overall sales at 76%, which increased the villa and townhouse sale to 24%, up from 18% during the last quarter.
Major areas such as Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons took up more than half of the quarter’s transactions and new launches. Due to the lack of land in central Dubai, developers are moving out into cheaper, outside areas.
The prime residential market continues to attract the world’s high-net-worth individuals (HNWIs), owing to Dubai stability and business-friendly policies. 1,355+ vessels of luxury meant for prices of over AED 10 million ($2.72 million) sold in Q1: That’s up 31% year-on-year. Villas held market share in this segment at 73% and recorded 52% annual increase.
“Demand in Dubai’s luxury sector continues to strengthen” said Andrew Cummings, Head of Residential Agency. Uncertainty on the global scale is pushing the world’s rich into Dubai, particularly for spacious villas, with privacy.
Experts say, with such supply pipeline, there should be balanced approach. Nonetheless, the outlook for 2025 is, nonetheless, positive because the appeal of Dubai continues to draw global residents and investors that search for long-term value, safety, and opportunities.
