According to Property Monitor, Dubai’s real estate market experienced a 0.57% price drop in January 2025—the first decline since mid-2022—signaling potential stabilization. Despite this, the month recorded 14,413 sales, the strongest January on record.

Average property prices fell to AED 1,484 per sq. ft, while sales volumes declined 4.6% from December 2024. However, off-plan launches surged, with 53 new projects adding 12,400 units. Mortgage transactions also increased by 6.8%, showing continued buyer confidence.

Emaar led off-plan sales with a 16.5% market share, followed by DAMAC (15.8%) and Danube (5.3%). The highest villa sale hit AED 425 million ($116M) in Emirates Hills, while the lowest was a studio at AED 175,000 ($48K) in Dubai Production City.

Industry experts see this shift as a transition towards a more balanced market, where supply and demand will dictate future trends in 2025 and beyond.