Dubai real estate market sees first price drop in two years
According to Property Monitor's latest report, Dubai's real estate market is showing signs of stabilization after nearly four years of continuous price growth. In January 2025, property prices dipped by 0.57%, marking the first decline since mid-2022. Despite this shift, the market remained highly active, recording 14,413 transactions—the highest ever for January.
Key market trends
Prices decline slightly: The average price per square foot fell to AED 1,484, indicating a cooling market after years of rapid appreciation.
Sales activity still strong: Although total transactions were down 4.6% from December 2024, the numbers remain historically high.
Off-plan market expands: January saw 53 new launches from 37 developers, adding 12,400 new units to the market. While sales accounted for 52% of all transactions, they declined by 17.7% compared to December.
Title deed sales on the rise: Sales of ready properties also saw a notable month-on-month increase of 15.7%, accounting for 47.6% of total transactions, reflecting steady demand for completed homes.
Mortgage activity grows: Mortgage transactions increased by 6.8% month-on-month, with 4,134 loans secured. Despite tighter UAE Central Bank regulations, loan-to-value (LTV) ratios held steady.
High-value transactions
The most expensive sale recorded was a villa in for AED 425 million.
The lowest transaction was a studio in Dubai Production City for AED 175,000.
Top developers by market share
Emaar Properties: 16.5% (leading off-plan sales)
Damac Properties: 15.8%
Danube Properties: 5.3%
As Dubai's property market evolves, the coming months will be crucial in determining whether this dip is a temporary fluctuation or the start of a new trend toward balance and sustainability. Investors and buyers should keep a close eye on supply and demand dynamics to make informed decisions.