Sales volumes were down 4.6 per cent compared to December 2024, according to the latest Property Monitor monthly market report
Dubai real estate prices fell by 0.57 per cent in Jan 2025, marking the first decline since mid-2022 and signalling a potential market stabilisation, according to leading real estate intelligence firm Property Monitor.
Despite the dip in prices, January recorded the highest-ever sales volume for the month, with 14,413 transactions. However, sales volumes were down 4.6 per cent compared to December 2024, and average prices declined to Dhs1,484 per square foot, the firm’s monthly market report revealed.
The off-plan segment continued to expand, with 53 project launches from 37 developers introducing 12,400 new units.
Mortgage transactions also saw a 6.8 per cent month-on-month increase, with 4,134 loans secured, while loan-to-value (LTV) ratios remained steady despite stricter enforcement of UAE Central Bank regulations.
Market shift towards stability
“After four years of continuous growth, Dubai’s real estate market is starting to show signs of stabilisation,” said Zhann Jochinke, COO at Property Monitor.
“While transaction volumes remain 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 rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the market’s future in 2025 and beyond.”
The report highlighted that the median price for apartments stood at Dhs1.35m, townhouses at Dhs2.61m, and villas at Dhs6.92m.
Dubai off-plan market sees slowdown
Off-plan transactions accounted for 52 per cent of total sales in January, with 7,555 deals recorded.
However, this segment saw a 17.7 per cent decline compared to December 2024. Meanwhile, title deed sales surged by 15.7 per cent month-on-month, making up 47.6 per cent of transactions.
Emaar Properties led the off-plan market with a 16.5 per cent share, followed by DAMAC Properties at 15.8 per cent and Danube Properties at 5.3 per cent.
Among the most notable transactions, a villa in Emirates Hills secured the highest recorded sale at Dhs425m, while the lowest transaction was a studio apartment in Dubai Production City for Dhs175,000.
Dubai’s real estate sector witnessed record-breaking performance in 2024, with a 30 per cent year-on-year growth in prices, launches, transactions, and mortgages.
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