Market Insights: March 2025

*Please note: This graph has been simplified to display only data for the month of March each year.

Dubai’s property market continued its upward trajectory in March, with average prices rising 1.88% MoM to AED 1,534 per sq.ft. This marks the second consecutive month of above-average growth, pushing values 24.3% above the previous peak in 2014.

Despite a 5.7% dip in transaction volume, activity remained strong with 15,223 deals closed - the highest March on record. Off-plan sales led the market, accounting for 67.2% of transactions after adjusting for technical classification discrepancies. Resale volumes also edged higher, signalling steady end-user and investor demand for near-completion assets.

Investor appetite remains strongest in the off-plan segment, where price premiums over completed stock reached as high as 85% in Motor City and 73% in Dubai Sports City. These gaps reflect both the quality of new launches and the maturing expectations of a more selective buyer pool.

While mortgage activity slowed slightly, new purchase loans saw healthy demand - suggesting that buyers remain confident despite macroeconomic headwinds. Developers also continued launching aggressively, with several high-profile bulk mortgage deals pointing to sustained institutional activity.

Dubai’s property market continues to display balanced strength across segments. Although growth may moderate later in the year, current indicators point to sustained momentum and investor interest, particularly in the mid-to-upper tiers.

Dubai’s AED 1M-3M price segment led transaction volumes once again in March, now making up 53.8% of all sales - its highest share on record. The strongest gains were seen in the AED 2M-3M bracket, up 1.6% MoM, followed by AED 1.5M-2M (+0.7%) and AED 3M-5M (+0.4%).

At the top end of the market, AED 10M+ properties gained 0.3%, while AED 5M-10M stock held firm. Notable transactions included the Baccarat Residences in Downtown Dubai (AED 6,383 per sq.ft.) and the Cavalli Tower Sky Villas (AED 5,918 per sq.ft.), reinforcing strong appetite for branded luxury products.

Lower price tiers saw a modest easing, with the AED 750K-1M bracket down 0.4% and sub-AED 500K stock dropping by 0.2% - another sign that buyers continue to trade up. The AED 1M-1.5M group, previously a market anchor, edged lower to 18.3% share, reflecting continued upward demand momentum.

In short: demand continues to skew upward, with the mid-market and lower prime brackets (AED 1.5M-3M) increasingly becoming the transaction heartland for both end-users and investors.

The AED 2M-3M segment continues to lead Dubai’s property market, securing a 21.6% market share in March - the highest on record for this price band. Strong off-plan interest and new mid-market launches have firmly positioned this tier as the preferred bracket for both end-users and investors.

The AED 1.5M-2M and AED 3M-5M tiers also posted healthy gains, up 1.3% and 1.4% MoM respectively, reflecting broader momentum across the mid-to-upper market. Buyer appetite in the AED 5M-10M and 10M+ segments grew modestly but steadily, with share increases of 1.1% and 0.5% MoM.

On the more accessible end of the market, activity continues to rebalance. The AED 1M-1.5M tier dipped 3.1%, while sub-AED 1M brackets saw further consolidation - indicating an ongoing shift towards higher-value opportunities.

Overall, demand remains firmly anchored in mid-tier and high-performing lifestyle communities, with off-plan launches fuelling most of the upward movement.