Dubai Real Estate Prices: Is there Really a Decline? February Year Over Year Analysis 2025 Vs 2024

March 12, 2025

Dubai Real Estate Prices Decline – What’s Really Happening?

Dubai’s overall market average price per square foot for residential properties has declined by 1.4% from February 2024 till February 2025. It’s important to take a closer look at what aspects of the market changed so we can figure out if Dubai’s real estate prices have reached a peak.

✅ Off-plan residential property prices have indeed declined, with an average drop of -5.8% year-on-year (YoY) in February 2025.

✅ Ready residential properties, on the other hand, have increased in value, with an overall +5.1% rise in price per square foot (sqft).

This contrast highlights a key trend: Buyers are shifting from off‑plan to ready properties, largely driven by changing economic conditions and interest rate movements. Let’s dive into the data to uncover what’s really happening.

Dubai Residential Real Estate Price Trends (Feb 2024 vs Feb 2025)

Total Transactions

+40.7% YoY

February 2024: 10,683 transactions
February 2025: 15,036 transactions

Overall Market Average Price

-1.4% YoY

February 2024: AED 1,709 per sqft
February 2025: AED 1,685 per sqft

Off-Plan Market

-5.8% YoY

Transaction volume: +59.4%
High competition among developers

Ready Property Market

+5.1% YoY

Transaction volume: +11.1%
Buyers shifting to completed properties

Transaction Volume Comparison

Despite the price fluctuations in various segments, transaction volumes have shown significant growth. Ready properties transactions increased by 11.1% year-on-year, while off‑plan property transactions surged by an impressive 59.4%. This surge in activity, especially in the off‑plan segment, suggests that investors and end‑users are taking advantage of competitive pricing and flexible payment plans offered by developers.

Total transaction volume increased by 40.7% year-on-year, reaching 15,036 transactions in February 2025 compared to 10,683 in February 2024, demonstrating continued strong interest in Dubai’s real estate market despite price corrections in certain segments.

Why Are Off-Plan Prices Dropping While Ready Properties Are Increasing?

Interest Rate Impact

Lower interest rates make ready properties more attractive to end‑users who want immediate occupancy.

Oversupply in Off-Plan Market

Developers are launching more projects, increasing competition and pushing down prices.

Investors Shifting to Rental Income

Ready properties offer immediate rental yields, making them more appealing than speculative off‑plan investments.

Luxury & Family Homes in High Demand

Villas and townhouses are seeing strong demand, while smaller units (studios, 1-bedrooms) face downward pressure.

Price Changes by Property Type

Ready Properties Price Trends (Feb 2024 vs Feb 2025)

✅ Biggest Winners: Villas (+14.3%), Studios (+12.9%)

❌ Only Segment Declining: 2-Bedroom Apartments (-2.1%)

Off-Plan Properties Price Trends (Feb 2024 vs Feb 2025)

✅ Biggest Gainers: 3+ Bedroom (+6.5%), Villas (+5.1%)

❌ Biggest Decliners: Studios (-7.2%), 1-Bedroom (-1.9%)

Which Communities Saw the Biggest Price Drops?

Ready Property Communities with the Largest Price Drops:

Off-Plan Communities with Largest Price Drops

Which Communities Saw the Biggest Price Gains?

Ready Property Communities with Largest Price Gains

Off-Plan Communities with Largest Price Drops

Conclusion: Is Dubai’s Real Estate Market Declining?

Market Shift, Not Decline

The market is seeing a divergence where ready properties are appreciating while off‑plan properties are experiencing corrections.

Adapt Your Strategy

If you’re looking for capital appreciation, ready properties (especially villas and townhouses) are performing well. If you want discounted entry prices, off‑plan properties in emerging areas might be an opportunity.