As the financial year FY2025 unfolds, the Emirates region is showing strong economic momentum across sectors—be it real estate, tourism, or aviation. Let’s explore what’s fuelling the buzz across Dubai and Saudi Arabia and what investors and market watchers need to know.
Dubai real estate surges 17% in February 2025
Dubai’s property market continued its upward trajectory in February 2025, with sales volume touching AED 41 billion ($11.16 billion). That’s a 17% increase month-on-month, across 14,929 transactions, according to Betterhomes.
The average price per square foot touched a record AED 1,505, a 1.41% rise from January, and more than double the historical low of AED 716.
Key Market Highlights:
| Metric | February 2025 | Change |
| Total Sales Volume | AED 41 billion | +17% MoM |
| No. of Transactions | 14,929 | +15% MoM |
| Avg Price/Sq Ft | AED 1,505 | +1.41% |
| Top Segment | Off-plan properties | 59% of sales |
Most popular property types:
- Apartments: One-bedroom units made up 43% of sales
- Villas: Four-bedroom units dominated with 51% share
Leading developers by sales:
| Developer | Sales (AED) |
| Emaar | 4.11 billion |
| Sobha | 1.44 billion |
| Damac | 0.82 billion |
| Omniyat | 0.78 billion |
| Dubai Properties | 0.65 billion |
Villa prices saw a 60% jump MoM to an average of AED 11.48 million, while apartment prices rose 30% to AED 2.26 million.
Betterhomes also reported a 25% surge in buyer leads, with 53% from end-users and 47% from investors. Notably, 64% of transactions were financed via mortgages, reflecting ongoing demand despite rising lending rates.
Saudi Arabia’s religious tourism up 55% YoY
Religious tourism in Saudi Arabia is seeing an unprecedented rise, supported by Vision 2030 initiatives. According to Skyscanner:
- Flight searches to Saudi Arabia rose 55% YoY (2023–2024)
- January 2025 saw a 21% increase over January 2024
- The busiest search day in 2024 was March 13, ahead of Ramadan
Madinah is emerging as a major hub, with flight searches to Prince Mohammad bin Abdulaziz International Airport up 54% YoY.
Top demand insights:
- Peak interest dates for 2025: March 2 and March 7
- Week-on-week search increase (Feb 3, 2025): +49%
Despite the surge, connectivity gaps persist, especially from markets like Manchester and London Heathrow, which remain underserved by direct flights to Madinah.
Saudi Arabia is addressing these challenges through projects like:
- Haramain High-Speed Railway
- Makkah Route Initiative
This growth directly supports Saudi Arabia’s economic diversification goals and is expected to continue accelerating as infrastructure expands.
Dubai index dips, Abu Dhabi stays afloat
The Dubai stock market fell by 0.9% on March 14, mostly dragged down by the real estate sector amid global tariff tensions triggered by U.S. President Donald Trump’s threat of 200% duties on European imports.
Key movers:
- Emaar Properties: -2.2%
- Emaar Development: -2.8%
- Commercial Bank of Dubai: -6.1% (ex-dividend drop)
- Dubai Investments: +4.4% (after raising the dividend by 44%)
Meanwhile, Abu Dhabi’s index edged up by 0.1%, supported by:
- First Abu Dhabi Bank: +1.1%
- Emirates Telecommunication Group (E& Group): +1.4%
Oil prices also contributed to market sentiment:
- Brent crude rose 1% to $70.57/barrel, driven by concerns over prolonged disruptions from the Ukraine conflict.
Despite this, both markets have recorded losses for the fourth consecutive week, with:
- Dubai index down 1.6%
- Abu Dhabi index down 0.3%
DAE expands fleet with $1 billion aircraft acquisition
In a significant move in aviation, Dubai Aerospace Enterprise (DAE) has announced a $1 billion deal to acquire 17 aircraft. This expansion comes as the aviation sector prepares for future demand recovery.
Key deal details:
| Metric | Value |
| Total Aircraft | 17 |
| Investment | $1 billion |
| Fleet Age (Post-deal Avg) | 6.9 years |
| Lease Term Remaining Avg | 6.6 years |
| Airbus Share | 46% |
| Boeing Share | 49% |
| ATR Share | 5% |
80% of the new aircraft are Airbus models, with 20% being Boeing. The planes are leased to 11 airlines across 10 countries, enhancing DAE’s portfolio diversity.
DAE CEO Firoz Tarapore noted this aligns with the firm’s focus on younger, fuel-efficient aircraft, especially given the current supply chain delays in new deliveries.
Both A321neo and 737 MAX aircraft offer:
- 20% lower fuel usage
- 50% noise reduction
- Lower maintenance costs
This move strengthens DAE’s position in the secondary market and ensures a modern fleet for the years ahead.
Bottomline:
Whether it’s record-high Dubai property prices, religious tourism growth in Saudi Arabia, or aviation fleet expansion, the Emirates market is showing strong indicators of a broader recovery and transformation in FY2025.
Yes, there are global headwinds—like tariff tensions and oil market volatility—but local fundamentals, especially in real estate and aviation, continue to show resilience.
Keep watching this space for more Emirates market news, because the Middle East is not just reacting to global trends anymore—it’s actively shaping them.
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