First signs of stabilisation as prices fall 0.57% month on month
Dubai real estate prices fell by 0.57% in January 2025 – the first decline since summer 2022 – signalling a market shift towards stabilisation, according to leading real estate intelligence authority, Property Monitor.
While the first month of 2025 was the strongest January on record for transactions with 14,413 sales, average prices dropped to AED1,484 per sq ft. Sales volumes were down 4.6% compared to December 2024, according to the latest Property Monitor monthly market report.
Off plan launches continued to soar in January, with 53 launches from 37 developers bringing another 12,400 units to the market. Mortgage transactions also rose 6.8% month on month, with 4,134 loans secured. Loan to value (LTV) ratios also held steady despite stricter enforcement of UAE Central Bank regulations.
Zhann Jochinke, Chief Operating Officer, 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 constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai’s property sector could be transitioning from a continued phase of rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the future of the market in 2025 and beyond.”
The Property Monitor January 2025 report shows that the median price for apartments was AED1,350,000, with townhouses at AED2,61,000 and villas at AED6,915,888.
With 7,555 transactions, the off-plan market accounted for 52% of sales during January, down 17.7% on December 2024. Title Deed sales saw a marked month-on-month increase, rising by 15.7% and accounting for 47.6% of sales. Emaar Properties claimed the top spot for off-plan transactions, with a market share of 16.5%, followed by DAMAC Properties at 15.8% and Danube Properties at 5.3%.
A villa in Emirates Hills secured the highest recorded sale, with a price tag AED425 million. The lowest, at AED175,000 was for a studio apartment at Dubai Production City.
Dubai’s property sector saw 30% year on year growth in 2024, breaking all records and reaching new milestones in terms of prices, launches, transactions and mortgages.
