Dubai’s real estate market, which witnessed an extraordinary surge over the past four years, is beginning to show signs of a slowdown. While property sales remained robust in the fourth quarter of 2024, prices have started to soften, with January 2025 marking the first monthly dip in over two years.
Dubai’s real estate market ended 2024 on a strong note, with residential transactions in the fourth quarter surging 55% year-over-year. According to data from Square Yards, there were 33,110 registered transactions in Q4 2024, up from 21,405 in Q4 2023. Sales value also shot up 44%, reaching Dh 65.23 billion (₹1.5 lakh crore).
Despite the high volume of transactions, average home sales price dropped by 7% to Dh 1.97 million (₹4.69 crore). This suggests buyers were leaning towards smaller and more budget-friendly properties.
Homes under 1,000 square feet dominated the market, accounting for 75% of transactions in Q4 2024, a significant jump from 61% the year before. In contrast, larger homes over 1,000 square feet saw their market share shrink from 39% to just 25%.
Affordability remains a key factor. Properties priced under Dh 2 million made up 74% of total sales last quarter, up from 70% a year ago. Meanwhile, demand for higher-end homes in the Dh 3-5 million range saw a slight dip.
A few big-name developers have been driving this boom. Sobha Realty, founded by Malayali businessman PNC Menon, led the pack with 1,960 transactions, largely thanks to its Sobha Orbis project. Azizi Developments followed with 1,158 transactions and Damac Properties came in third with 1,050 transactions.
In terms of total sales value, Sobha Realty also came out on top, pulling in Dh 4.297 billion. Emaar Properties followed at Dh 1.965 billion and Damac Properties secured Dh 1.464 billion in sales, while Azizi Developments wasn’t far behind at Dh 1.370 billion.
At the start of 2025, the Dubai property market is showing signs of cooling down. In January, approximately 14,413 property transactions were recorded—the highest ever for the month—yet this marked a 4.6% decline from December 2024. More notably, property prices saw their first monthly drop in over two years.
According to Property Monitor, the average price per square foot fell by 0.57% in January 2025 to Dh 1,484 (~₹35,300). This slowdown follows four years of unprecedented growth, with prices surging more than 30% in 2024 alone.
The slight price correction reflects growing affordability constraints after years of steep appreciation. While demand remains strong, shifting buyer preferences and the first price dip in two years suggest the market is adjusting to new dynamics.
