Dubai Real Estate: Cooling Down After a Boom?
Dubai’s red-hot real estate market might be showing signs of stabilization. After four years of continuous growth, January 2025 saw a slight price dip of 0.57%, the first since mid-2022, according to Property Monitor.
Despite this, January broke records for sales volume with 14,413 transactions. However, this was down 4.6% from December, and average prices fell to Dhs1,484 per square foot.
Key takeaways:
- Price Decline: A potential shift towards market stabilization.
- Strong Sales: January’s sales volume was the highest ever for the month.
- Off-Plan Activity: 53 new projects launched, adding 12,400 units, though off-plan sales slowed compared to the previous month.
- Mortgage Rise: Mortgage transactions increased by 6.8% month-on-month.
- Market Outlook: Experts suggest a potential transition from rapid growth to a more sustainable pace, with supply and demand balance being crucial.
While the market saw a record-breaking 2024, the slight January dip signals a potential change. Keep an eye on Dubai’s real estate, as 2025 could bring a more balanced market.
