Dubai Real Estate Market Overview: February 2025

February 2025 continued the momentum from January, with impressive sales, rising prices, and a booming mortgage market. Investors and homebuyers are all in, demonstrating that Dubai remains a top global property hotspot.

Property Price Trends

• Price per Square Foot: In February 2025, the average came in at AED 1,548 per square foot, up from AED 1,499 in February 2024. To put it in perspective, back in 2021 it was just AED 870 per square foot. That’s almost an 80% jump in just four years!
  
  

• Average Transaction Value: With a total sales value of AED 50 billion spread over 16,000+ transactions, the average deal was roughly AED 3.125 million. Compared to January’s average of about AED 2.86 million, buyers are clearly leaning toward higher-value properties.

Mortgage Market Growth

Financing is really picking up pace:

• Number of Mortgage Transactions: There were 3,520 mortgage deals in February, marking a 22.8% increase from the same month last year.
  
  

• Total Mortgage Value: The total mortgage amount reached AED 14.4 billion, up a whopping 65.1% year-on-year. On average, each mortgage was around AED 4.09 million, and slightly lower interest rates (about 3.8%) are making financing even more attractive.
  
  

Property Sales Volume & Value

The numbers here speak for themselves:

• Transaction Volume: Over 16,000 property transactions were completed in February 2025 – a record for the month and nearly double what we saw back in February 2022.
  
  

• Total Sales Value: All property sales totaled AED 50 billion, which is a 25% increase compared to January (when sales hit AED 40 billion).

  • Monthly Comparison:

    • January 2025: 14,000+ transactions

    • February 2025: 16,000+ transactions (a 14% boost!)

Top 5 performing areas - February 2025

First Sales vs. Resale Market

Breaking down the types of deals:

• Volume:

  • First Sales: 66%

  • Resale Transactions: 34%
    
    

• Value:

  • First Sales: 62%

  • Resale Transactions: 38%

New, off-plan properties still dominate the market. These tend to deliver average returns of around 7.5% per year, while resales see about 6%. It shows that both brand-new and existing homes are getting plenty of love from investors.

Extra Trends and Efficiency Gains

Dubai's property market is on fire in February 2025. Deals are closing faster than ever-what used to take 40 days now wraps up in just 32 days. 

At the same time, people are opting for more space, with the average home size growing from 1,110 to about 1,200 square feet, probably thanks to more folks working from home. 

Prime properties are nearly sold out too, with occupancy rates rising to 87% from 82% last year.

Developer Activity & Future Outlook

On the development side, heavy-hitters like Emaar and Damac have already rolled out over AED 30 billion in new projects this year. Building permits have surged 18% year-over-year, with 60-plus residential projects approved and valued at roughly AED 22 billion all together. 

Looking ahead, initiatives like the Dubai 2040 Urban Master Plan are spurring optimism, with experts expecting property values to jump by around 15% annually over the next five years. Rental yields are on the up too, inching higher from 6.6% to 7.2% in February, thanks to lower vacancy rates and growing demand from both buyers and renters.

General Market Conditions in Dubai

On a broader scale, real estate now accounts for nearly 8% of Dubai’s GDP, proving its massive role in the city’s economy. 

Foreign investment is booming as well, with international buyers making up about 47% of transactions in February-up from 43% last year-which translates to a 20% year-on-year boost in foreign direct real estate investment. 

With over 90,000 property transactions already this year and tech innovations like blockchain shaving about 15% off processing times, it's clear that Dubai's property scene is buzzing with energy and showing no signs of slowing down.

Comparing January & February 2025 – What Changed?

With two months of data in, we can see some clear trends emerging:

Total Sales Transactions:

• January: 14,000+ transactions

• February: 16,000+ transactions (14% increase month-over-month)

Total Sales Value:

• January: AED 40 billion

• February: AED 50 billion (25% increase)

Mortgage Activity:

• More people took out loans in February, following a drop in mortgage values in January.

Property Prices:

• January: AED 1,550 per sqft

• February: AED 1,548 per sqft (a slight dip, but still stable).

So, What’s the Takeaway?

1. The market isn’t just growing-it’s accelerating. Sales, prices, and mortgage transactions are all on an upward trend.

2. February was even stronger than January, with higher sales volume and transaction value.

3. Buyers are getting more comfortable with mortgages, and investor confidence remains high.

Dubai’s real estate market in February 2025 is on fire. With a 25% jump in total sales value and record transaction volumes, plus a mortgage market that’s booming, there’s every reason to be optimistic. Key points include:

• A massive rise from AED 870 per square foot in 2021 to AED 1,548 in February 2025.

• Hot new (first sale) deals making up 66% of transactions.

• Faster closings at just 32 days on average.

• Big-ticket projects and tighter occupancy in prime areas.

Top 5 projects with the most expensive sold apartments 

Top 5 areas with the most expensive sold villas 

The best selling projects in February 2025 

Off-plan apartments 

Off-plan villas 

Ready apartments 

Ready villas 

Dubai continues to blend dynamic growth with efficiency, making it a playground for both investors and homeowners.