January 2025 became the first month since summer 2022 when residential property prices in Dubai recorded a decline. The correction is modest at –0.57% month-on-month, but the signal itself is notable.

The average price stands at AED 1,484 per sq. ft., which remains approximately 20% above the 2014 market peak.

The first correction does not signal weakness, but a transition from acceleration to normalization.

What Is Happening in the Market

Transaction volume declined by 4.6%, yet January still ranks as a record month by historical standards.

  • Off-plan remains dominant, accounting for 67.6% of the market, including technically registered Title Deeds.
  • Resale transactions reached 38.6% and continue to grow, particularly as projects approach completion.
  • In January alone, 53 new projects were launched, adding more than 12,400 units to supply.
  • Mortgage activity remains strong, up 6.8% compared to December, with an average loan size of AED 1.97 million.
  • The most active developers during the month were Emaar, DAMAC, and Danube.

Pro Tip

Periods of stabilization often improve market quality by filtering speculative demand and strengthening end-user participation.

What Buyers Are Choosing

Demand is increasingly concentrated in the mid-market segment.

  • Properties priced between AED 2–3 million showed the fastest growth, increasing by 4.2%.
  • The share of units priced below AED 1 million continues to decline.
  • The AED 1–3 million range now represents 52.8% of total market activity.

Calculate Your Property Revenue

Get a quick estimate of your property's potential income

Where Transactions Are Concentrated

Primary market: Dubai Land, DAMAC Hills 2, Expo City.

Secondary market: Jumeirah Village Circle (JVC), Business Bay, Dubai Marina.

Where the Market Is Heading

Dubai’s property market is no longer sprinting upward.

It remains fundamentally strong but is transitioning into a phase of measured growth and stabilization. Speculative momentum is giving way to selectivity, affordability, and realistic pricing expectations.

In practical terms, the market is moving from rapid adolescence into a more mature and structured phase — one increasingly shaped by mortgage financing, planning discipline, and rational decision-making.