Dubai to add 73,000 new homes in 2025 as property sales reach $31 billion

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Dubai to add 73,000 new homes in 2025 as property sales reach $31 billion

Dubai is set to expand its residential inventory with the delivery of 73,000 homes in 2025, taking the emirate closer to a total of 300,000 new units by the end of 2028, according to research from property consultancy Cavendish Maxwell.As reported by Arabian Business, Dubai recorded 42,000 property sales transactions valued at AED 114.4 billion ($31 bn) in the first quarter of 2025. Although this reflects a 10 per cent decline from the previous quarter, it marks a 23 per cent rise compared to the same period last year.“Dubai’s property market is on track for a modest annual increase in terms of sales volumes and values, but there are indications that prices are beginning to stabilise. 2025 began with a brief dip in prices per sq ft, followed by a steady recovery. While prices are still on the up, the pace is showing signs of slowing down. For example, the average quarterly price increase for 2023 and 2024 was 4 per cent, compared to a 2.8 per cent rise in Q1 this year against Q4 2024,” said Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell.“With a weakened US dollar, strong rental returns and appealing yields, Dubai continues to attract local and international property investors. We expect this trend to continue throughout the year,” Arthur added.Off-plan sales led the market with a 70 per cent share, amounting to AED 77.5 billion from 29,000 transactions — a 32 per cent increase year-on-year. Secondary market transactions stood at 13,200, reflecting a 6.6 per cent annual increase.Apartments comprised 75 per cent of all transactions, although interest in larger homes grew. Townhouses accounted for nearly 17 per cent of sales, while villas made up just over 7 per cent.Average property prices reached AED 1,535 per square foot, a 2.8 per cent quarterly increase and 16 per cent higher than in Q1 2024.The luxury segment saw 590 property sales priced above AED 20 million, up from 480 in the same period last year. Nearly 60 of those were for homes priced at AED 50 million or more. Arthur noted that off-plan sales made up 67 per cent of luxury transactions and nearly one-third of ultra-luxury sales.A surge in completions is expected in 2026 and 2027, with over 180,000 units scheduled for delivery.In Q1 2025, Jumeirah Village Circle (JVC) led all locations with 4,330 new units delivered. JVC also saw the highest number of apartment transactions at 3,330 — nearly 2,200 off-plan and 1,132 secondary market deals, reported Arabian Business.Mohammed Bin Rashid City followed with 1,037 units completed, ahead of Business Bay (743), Downtown Jebel Ali (647), and Rukan (636). Looking ahead, JVC is expected to receive almost 27,100 new units by 2028, trailed by Business Bay (19,470), Azizi Venice (17,100), DAMAC Lagoons (10,730), and Arjan (9,750).From January to March, apartments accounted for nearly 80 per cent of all completions. During the same period, 95 projects were launched, delivering around 28,600 new units.DAMAC Islands led off-plan villa and townhouse sales with 1,430 transactions, followed by The Valley, DAMAC Hills 2, Villanova, and DAMAC Lagoons. For secondary market sales in this segment, DAMAC Hills 2 topped the list with 318 deals, ahead of Al Furjan, Emirates Living, Reem, and JVC.Residential rents rose 14.4 per cent annually but showed only 1 per cent growth compared to Q4 2024 — the slowest quarterly rise in two years. “This slower pace of growth could be partly driven by the influx of new units delivered in the first three months of the year, as well as the Dubai Smart Rental Index, introduced at the beginning of the year, which is likely to influence tenant expectations and price adjustments. With additional supply on the way, monitoring how rental trends evolve in response to increasing inventory and a shifting, regulatory framework will be crucial,” Arthur said.As of March 2025, rental yields averaged 7.3 per cent for apartments and 5 per cent for villas and townhouses. Dubai Investments Park offered the highest yields for apartments at 10.3 per cent, followed by International City (9.1%), Downtown Jebel Ali (9%), Dubai Production City (8.6%), Dubai Silicon Oasis (8.5%), Dubai Sports City (8.4%), and Liwan and International City Phase 2 (8.2% each).For villas and townhouses, Industrial City led with yields of 6 per cent, followed by JVC at 5.9 per cent, DAMAC Hills 1 and 2 (5.7%), International City and Serena (5.5%), Mudon and Villa Nova (5.4%), and Dubai Hills Estate (5.3%).



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