Dubai’s property market kept its momentum alive in March, with resale activity alone crossing $4.19 billion, underscoring continued appetite from long-term investors and end users alike. The month saw 3,308 secondary transactions valued at AED15.39 billion, generating a collective gain of AED4.6 billion for sellers.
Figures released by fäm Properties paint a picture of resilience. Even as regional uncertainty lingers, the market delivered robust resale performance, while rental demand remained strong across residential segments.
Leasing activity followed suit. A total of 36,658 residential tenancy contracts worth AED3.16 billion were registered during March, with renewals making up roughly two-thirds of the total. Apartments dominated the leasing landscape, accounting for 33,500 contracts valued at AED2.40 billion, reflecting continued preference for urban living. 🏙️
Data from DXBinteract showed average rents on new contracts climbing 7% year-on-year. Villas led the charge, posting a sharp 15.9% increase, while apartment rents edged up 5%. Townhouses were the lone segment to soften slightly.
Firas Al Msaddi highlighted that demand has remained steady despite geopolitical concerns, noting that early-year strength carried through into March. The volume of renewals, alongside new agreements, suggests residents are opting to stay put while newcomers continue to enter the market.
In the resale breakdown, ready properties drove the bulk of activity with 2,444 transactions worth AED9.01 billion. Off-plan resales contributed 760 deals totaling AED3.23 billion, while plot sales—though fewer at 104—added AED3.15 billion in value.
Profitability remained a standout feature. Nearly 90% of resale transactions delivered gains, with a median return of 25%. Villas outperformed all categories, recording a 97% profitability rate and a median gain of 60%. Plot sellers posted even stronger median gains nearing 99%, reflecting the surge in land demand. 📈
Villa rentals reached 1,870 contracts worth AED537.1 million, while townhouses registered 1,288 agreements valued at AED219.4 million. Commercial leasing also contributed significantly, with 16,600 contracts totaling AED1.24 billion, split between new agreements and renewals.
Overall, average new residential rents climbed to AED106,000 annually. Villas rose to AED387,000, apartments averaged AED84,000, and townhouse rents dipped slightly. Renewal rents mirrored the trend, increasing 4.9% overall, with villas again leading the upswing.
The March data reinforces Dubai’s dual narrative: investors continue to realize profits, and renters remain committed—two forces keeping the emirate’s real estate engine humming. 🚀
