PC: Arabian Business
The Dubai real estate market experienced a 0.57 drop in average property price in January 2025-the first decline since an extended growth period that commenced in mid-2022 and points towards the possibility of stabilization in the market as per report from Property Monitor. Nevertheless, changes in prices happened with the highest January transaction on record, 14,413 sales in this month which is lower by 4.6% on comparison with the sales recorded in December 2024.
Average property price stood at AED1,484 per sq. ft. The off-plan sector has seen a flurry of activity as 37 developers launched 53 new projects over the month, which added a further 12,400 units to the market. Mortgages witnessed a 6.8% rise in month-on-month transactions, amounting to 4,134 loans, with loan-to-value ratios continuing to stably exist amid stricter enforcement of the UAE Central Bank regulations.
Zhann Jochinke, Chief Operating Officer at Property Monitor, explained that Dubai’s real estate market is starting to stabilize after four years of continuous growth. He stated that, although transaction volumes have remained strong, constraints on pricing affordability and the maturity of the market are influencing what is happening. Jochinke believed that the market is transitioning from rapid growth to sustainable growth, emphasizing that the balance between supply and demand will be very important in shaping the market’s future course.
The January report of Property Monitor averaged the median property prices: apartments AED 1.35 million, townhouses AED 2.61 million, and villas AED 6.92 million. (Sales of off plan accounted for about 52% of the overall transactions with 7,555 deals, showing a decline of 17.7% as compared to December 2024. Title deed sales were slightly better than last month, pushing up by 15.7% month-on-month, which accounted for 47.6% of total sales.
In January, Emaar properties took 16.5% of the total transactions from off-plan markets in Dubai. In second place, close behind, was Damac Properties with 15.8%. Danube Properties occupied 5.3%. The highest sale was the villa in Emirates Hills. This villa was sold for AED 425 million; conversely. And, the lowest was a studio apartment in Dubai Production City, sold for AED 175,000.
These market activities signify the transition in Dubai’s property sector. After several years of steep growth, the Dubai market seems to be entering comparatively a more stable and sustainable phase. It involves gradual price increases and stable transaction volumes that would seem to direct the market toward a balanced equilibrium between supply and demand.
