Chestertons Dubai Real Estate Market Report – February 2025

Residential Sales:

• Total sales transaction value: AED 53.3 billion (+51.9% YoY)
• Total transaction volume: 18,927 sales (+31.2% YoY)
• The off-plan market surged by 50.3%, driven by investor demand for long-term growth.
• Villas saw the highest price growth, with transaction values up 72.3% YoY.

Residential Leasing:

• Leasing transaction value: AED 4.4 billion (+12.8% YoY)
• Total leasing transactions: 53,200 (+3.9% YoY)
• Demand for apartments and townhouses continues to grow, with rental values seeing steady appreciation.

Commercial Sales:

• Commercial sales transaction value: AED 13.3 billion (+11.76% YoY)
• Commercial leasing value: AED 2.8 billion (+12% YoY)
• Despite strong sales values, transaction volumes saw a slight decline, indicating a tightening supply in premium office spaces.

Market trends & key takeaways:

Rising Upfront Costs for Buyers
The UAE Central Bank’s new directive requiring buyers to cover DLD and broker fees upfront is reshaping purchasing power. With an increased financial burden, more investors are shifting towards off-plan properties that offer flexible payment plans.

Supply Constraints Driving Prices
With demand outpacing supply in both residential and commercial markets, price appreciation is expected to continue in prime areas like Wadi Al Safa 5, JVC, Dubai Marina, and Business Bay.

Smart Rental Index Enhancing Market Transparency
The new rental index introduced earlier this year is increasing market confidence, making it easier for landlords and tenants to navigate rental pricing.

A Message from Our COO, Mania Merrikhi

“Celebrating 220 years of Chestertons is not just about looking back at our legacy—it’s about looking forward to the future of real estate. Over the past two decades, we’ve expanded our global presence, shaped markets, and built a brand that stands for excellence. The data in this report reflects the evolving nature of Dubai’s real estate sector, and as we continue to grow, Chestertons remains committed to providing expert insights and strategic guidance to our clients. Thank you to our dedicated team for making this success possible.”

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