Dubai Real Estate Prices Saw the First Dip in Two Years, According to Property Monitor Data
Dubai real estate prices dropped by 0.57 percent in January 2025, marking the first decline since the summer of 2022. This suggests a shift in the market towards stabilisation, according to Property Monitor.
Although January 2025 had the highest number of transactions for the month of January ever, with 14,413 sales, average prices fell to AED1,484 ($404) per square foot.
Sales volumes dropped by 4.6 percent compared to December 2024, according to the latest Property Monitor monthly market report.
Dubai Real Estate Price Dip:
Off-plan launches continued to increase in January, with 53 launches from 37 developers adding 12,400 new units to the market.
Mortgage transactions rose by 6.8 percent month-on-month, with 4,134 loans secured. Loan-to-value (LTV) ratios remained steady despite stricter enforcement of UAE Central Bank regulations.
Zhann Jochinke, Chief Operating Officer at Property Monitor, said: “After four years of continuous growth, Dubai’s real estate market is starting to show signs of stabilisation. While the total number of transactions remains strong, affordability issues and market maturity are beginning to affect the landscape.
“With sales volumes and mortgage transactions slowing down, Dubai’s property market may be shifting from rapid growth to a more sustainable pace. A balance between supply and demand will shape the future of the market in 2025 and beyond.”
Property Monitor January 2025 Report:
The report shows that the median price for apartments was AED1,350,000 ($368,000), townhouses were priced at AED2,610,000 ($711,000), and villas were at AED6,915,888 ($1.9 million).
Of the 7,555 transactions, the off-plan market accounted for 52 percent of sales in January, a decrease of 17.7 percent compared to December 2024.
Title deed sales saw a notable month-on-month increase of 15.7 percent and made up 47.6 percent of sales.
Emaar Properties led off-plan transactions with a market share of 16.5 percent, followed by DAMAC Properties at 15.8 percent and Danube Properties at 5.3 percent.
A villa in Emirates Hills achieved the highest recorded sale, priced at AED425 million ($116 million). The lowest recorded sale, a studio apartment in Dubai Production City, was priced at AED175,000 ($48,000).
Dubai’s property sector saw a 30 percent year-on-year growth in 2024, setting new records in prices, launches, transactions, and mortgages.
