Dubai’s apartment market continues to attract strong interest from both tenants and buyers thanks to its practicality and accessibility. Apartments accounted for 78% of all searches in January 2025, compared to 22% for villas and townhouses. On the buying side, 59% of purchasers preferred apartments for their convenience and flexibility, while 41% opted for villas.
Despite the growing market share of studio and one-bedroom apartments, around 70% of apartment buyers are still searching for one- or two-bedroom units. This reflects a trend among individuals and small families toward smaller, more budget-friendly housing options. It also highlights buyers’ preference for medium-sized units within well-connected residential communities.
In terms of market demand, January recorded a surge in initial inquiries exceeding 25% compared to December 2025, signaling renewed buyer engagement with the market.
More than one-third of inquiries came from individuals earning over AED 40,000 per month, underscoring strong confidence among high-net-worth investors and sustained demand for premium properties. Meanwhile, townhouses have emerged as an attractive option for buyers earning less than AED 40,000 per month.
Dubai’s real estate market posted a record-breaking start to the new year, with total transaction values reaching AED 72.4 billion, marking a 63% year-on-year increase — the highest in the emirate’s history.
This growth was driven by a 90% jump in the primary market, alongside a 38% rise in the secondary market. Regarding transaction volumes, the market recorded an annual increase of 23%, fueled by a 42% rise in primary market activity, while the secondary market saw a slight 1% decline.
Demand for off-plan properties continues to climb, with January data showing a 128% year-on-year increase in value compared to a 49% rise in ready property values. In the secondary market, ready properties remain the backbone, accounting for around 89% of total market value.
The value of ready units in this segment increased by 48% year-on-year. In contrast, off-plan properties within the secondary market experienced some cooling, with values declining by 9% and transaction volumes dropping by 27% annually.
Despite this modest slowdown in the secondary market, overall performance reflects rising demand and a continued shift toward high-quality ready assets. Investor and end-user confidence remains strong in both newly launched projects and off-plan developments.
