Global Buyers Drive Dubai Property Boom: Off-Plan Sales Dominate in 2025

• Property transactions in Dubai rose 35.5% YoY in 2024, with off-plan sales dominating early 2025.

• Off-plan homes represented 69.7% of all residential transactions in March 2025.

• Indian investors now make up 28% of buyers, with new entrants like Mexico at 11%.

• Dubai recorded AED142.7 billion in sales in Q1 2025 — the second-highest on record.

• Apartment prices rose by 21.4% YoY, with The Greens leading at 27.4% growth.

• Villa prices rose 30.3% annually; Jumeirah Islands villas up 42%.

• The population increased by over 170,000 in 2024, while only 27,000 homes were delivered.

• Signature off-plan projects such as Emaar’s The Valley and Sobha One remain high in demand.

• Flexible payment plans and investor-friendly regulations continue to drive off-plan sales.

• Top off-plan areas include JVC, Business Bay, and Dubai Maritime City.

Are we witnessing the most globally diversified property boom in Dubai’s history? That’s the question investors are asking as the emirate’s real estate market charges into 2025 with record-breaking momentum — led once again by its dominant off-plan segment.

Recent figures from Betterhomes, ValuStrat, and DXBinteract paint a clear picture: Dubai’s real estate machine is not only running hot, it’s attracting capital from increasingly varied corners of the globe. And while short-term headwinds exist in other markets, Dubai appears to be pulling further ahead, largely due to its investor-centric approach, supply constraints, and long-term value proposition.

Transaction Surge and Investor Shifts

The first quarter of 2025 recorded AED142.7 billion in real estate transactions — a 30.3% year-on-year increase and the second-highest quarterly figure in Dubai’s history. This surge isn’t just about numbers; it reflects deeper changes in the type of investor entering the market.

Indian investors have reinforced their dominance, increasing their share from 19% to 28%. But what stands out is the emergence of Mexican investors, who now account for 11% of all transactions — a complete absence in last year’s data. Pakistani buyers held steady at 11%, while new activity from Canadian, Jordanian, Lebanese, UK, Moroccan, Austrian, and Italian nationals — each at 6% — demonstrates just how international Dubai’s appeal has become.

In practical terms, these shifts signal one thing: Dubai is no longer just a regional investment hub; it’s global.

The Off-Plan Advantage

Off-plan sales continue to form the backbone of this growth. In March 2025, they accounted for nearly 70% of all residential sales. That’s not surprising when considering the current fundamentals:

• Lower entry prices relative to completed stock

• Flexible 50/50 and post-handover payment plans

• Faster capital appreciation as construction progresses

Investors are not just buying units; they’re buying into communities under construction with strong infrastructure commitments. Notable examples include Emaar’s The Valley, Sobha One, and Dubai Creek Harbour — all of which saw phases sell out within days.

Off-plan properties also mitigate current supply challenges. In 2024, Dubai added over 170,000 new residents — the highest annual population jump since 2018 — yet only 58% of projected new housing stock was delivered. This imbalance has led to consistent price increases and tight rental markets, further reinforcing demand.

Capital Values and the ValuStrat Price Index

According to the ValuStrat Price Index (VPI) — a market intelligence tool widely used by analysts and institutional investors — Dubai’s residential capital values rose by 27.5% in 2024, with villa prices increasing 31.6% and apartments 23.6%. That upward momentum has carried into 2025.

What is the ValuStrat Price Index?
The VPI is developed by ValuStrat, focusing on capturing the capital values of real estate across various sectors, including residential, commercial, and industrial properties. It leverages a weighted data sample that represents over 95% of Dubai’s property types, providing a comprehensive and transparent measure of value movement. For investors, this tool serves as a benchmark for identifying market trends, pricing shifts, and comparative growth across communities.

In March 2025, the VPI hit 210.8 points, signifying a 1.6% monthly increase and a 25.9% annual rise. Villa values climbed to 275 points, while apartment values reached 169 points — all benchmarked to a base of 100 in January 2021.

These index movements align with real-world gains seen across Dubai’s most active districts:

• Apartments: Prices rose 21.4% YoY. The Greens led with 27.4% growth, followed by Dubailand Residence Complex (25.5%) and Palm Jumeirah (25.2%). JBR also crossed its previous market peak.

• Villas: Values increased 30.3% annually. Jumeirah Islands topped the charts with 42% growth, followed by Palm Jumeirah (41.5%) and Emirates Hills (30.5%).

These trends reinforce that Dubai’s capital value appreciation is not isolated to luxury areas. Mid-tier and emerging districts also deliver outsized returns, particularly for early off-plan investors who entered projects during pre-launch phases.

Top Investment Zones

The top-performing off-plan areas as of Q1 2025 include:

• Jumeirah Village Circle (JVC) – 9.2% of off-plan sales

• Business Bay – 7.4%

• Damac Island City – 5.7%

• Dubai Production City – 5.3%

• Dubai Maritime City – 4.8%

Dubai Production City and Uptown Motor City even broke their monthly records for off-plan transactions — driven by affordable pricing, improved connectivity, and rising investor confidence in community upgrades.

Luxury Still Leads

Luxury properties remain a key driver of transaction value. In March 2025 alone, there were 23 deals for ready properties priced above AED30 million — with sales across Palm Jumeirah, Dubai Hills Estate, Emirates Hills, Al Barari, and Jumeirah Bay Island.

Why Overseas Buyers Are Acting Now

For foreign investors, Dubai’s off-plan property market offers several compelling advantages in 2025:

• Capital Appreciation: Double-digit annual price growth in emerging areas is still attainable.

• Rental Demand: With population growth outpacing supply, rental yields remain attractive.

• Tax Benefits: No capital gains tax, no stamp duty, and zero VAT on residential sales.

• Residency Incentives: Investors above certain thresholds can secure long-term UAE visas.

• Strategic Location: Dubai’s global connectivity appeals to HNWIs and digital entrepreneurs.

The Outlook for 2025 and Beyond

Dubai’s real estate market continues to outperform global peers, buoyed by investor trust, lifestyle appeal, and a maturing off-plan segment offering compelling value.

However, as prices climb and inventory tightens, early access and informed decision-making become more important than ever.

Why Contact Steven Leckie?

As Associate Director at haus&haus, with over two decades of experience in Dubai real estate, I specialise in helping overseas investors access the most promising off-plan opportunities — often before they reach the open market.

Whether you're looking for a rental-yielding apartment in a growing district or a luxury villa in a trophy location, I can help you evaluate your options and structure your investment for optimal returns.

Contact me today to explore the best-performing projects of 2025 before the next wave of price increases.