Dubai’s real estate market continued its strong performance in March, with average prices rising by 1.88% to AED 1,534 per square foot. This represents a 24.3% increase over the previous peak recorded in September 2014 and an 88.2% surge from the market low in October 2020. While transaction volumes declined by 5.7% compared to February, March recorded 15,233 sales the highest ever for the month and 11% above the previous record set in 2024.
Off-plan developments remained the primary driver of market activity accounting for 67.2% of total transactions after adjusting for registration discrepancies. Resale transactions comprised 42.8% of the market, with a noticeable uptick in off-plan resale activity.
The off-plan segment recorded substantial price premiums, with 14 of the 42 tracked communities registering premiums exceeding 30%. Motor City and Dubai Sports City posted the highest differentials, at 85% and 73% respectively.
Mortgage activity saw a slight decline of 2.3% in March, with a total of 3,434 loans issued. Purchase mortgages accounted for 56.9% of the total, with an average loan side of AED 1.88 million and a loan-to-value ratio of 75.6%. Bulk mortgage lending fell to 6.8%, reflecting a slowdown in institutional and multi-unit investor activity.
Developer performance was led by Binghatti, accounting for 13.1% of off-plan registrations, followed by Emaar art 12.9% and DAMAC at 7.4%. Jumeriah Village Circle recorded the highest number of both initial and resale transactions, underlining its appeal to both investors and end-users.
In terms of pricing tiers, the AED 500K-750K segment recorded the fastest growth at 2.3% while the AED 2M-3M bracket declined by 2.6%. The mid-market segment (AED 1M-3M) maintained the largest share at 49.4%, although down slightly from the previous month.
Overall, the market reflects continued investor confidence, supported by robust off-plan demand, competitive mortgage offerings, and a diversified pipeline of residential developments.
