Off-plan property sales continue to dominate the Dubai real estate market, representing an impressive 73% of all residential transactions. In the first quarter alone, over 32,300 off-plan units were sold, totaling Dh105.5 billion, reflecting a remarkable increase of nearly 35% compared to the same period in 2025.

Developers Lead the Charge

The majority of off-plan transactions were facilitated directly by developers, driven by attractive payment plans and the launch of new projects at competitive entry prices within apartment-centric communities. Notably, around 92% of off-plan acquisitions in the first quarter were made directly from developers. This figure climbed to 94% in March, as reported by Cavendish Maxwell. The consistent popularity of apartments is evident, as they accounted for more than 80% of both off-plan and ready property transactions, highlighting the strong demand from both end-users and investors drawn to accessible price points and rental yields.

In terms of property types, townhouses comprised 13% of off-plan sales, while villas made up 6.5%. In the ready market, townhouses constituted 12.7% of total sales, with villas following closely at 7.1%. According to Ronan Arthur, the Director and Head of Residential Valuations at Cavendish Maxwell, while the market is starting from a robust foundation, evolving conditions indicate a shift towards a more balanced real estate landscape.

Changing Market Dynamics

Arthur noted that the first quarter of the year began on a positive note, but a mix of factors—including geopolitical tensions, a decrease in transactions, and a slowdown in price growth—suggests a transition into a more stable phase of the real estate cycle. He anticipates that second-quarter transaction figures may reflect a downturn in activity due to these regional uncertainties, the lagging registration process, and a decline in new project launches.

Looking ahead, less transaction volume is likely in the second quarter as the influence of uncertainties and a reduction in new launches become more palpable in the market dynamics. The future performance of the market will largely hinge on the stabilization of conditions, the absorption of the supply pipeline, and ongoing demand from both end-users and investors. While challenges remain, the fundamental strengths of Dubai’s real estate market continue to be a driving force.

Leading Locations for Off-Plan Sales

Dubai South emerged as the premier location for off-plan apartment sales in the first quarter, recording a total of 2,340 transactions. Following this were the Dubai Residence Complex with 1,992 sales and Jumeirah Village Circle, which had 1,857. In terms of ready apartments, Jumeirah Village Circle maintained its lead with 1,036 transactions, closely followed by Business Bay. In the off-plan villa and townhouse market, DAMAC Islands 2 topped the list with 2,762 sales, while DAMAC Hills 2 led the way for ready villa sales with 230 reported transactions.

Pricing Trends and Luxury Demand

Average residential prices in Dubai reached an impressive Dh1,683 per square foot in the first quarter, representing a 9.6% annual increase, albeit the slowest growth recorded in three years. Rents also experienced a year-on-year increase of 10.2%, although this marked the most modest growth since 2022. With approximately 149,000 rental contracts registered during this period, renewals made up 66%, though the overall contracts witnessed a 2.2% year-on-year decline.

Despite the broader market dynamics suggesting moderation, the luxury segment remains robust, with high-end properties priced between Dh20 million and Dh50 million accounting for 740 transactions worth Dh28.2 billion, and ultra-luxury homes above Dh50 million generating Dh10.2 billion from 100 transactions. As the luxury market continues to flourish, it emphasizes Dubai’s enduring appeal, even in a landscape that is transitioning towards balance.

As we move through the year, the evolving landscape of Dubai’s real estate market reflects both challenges and opportunities, indicating a complex but vibrant property sector.