Dubai Property Set to Break Records in 2025

Dubai in 2025 — Record Real Estate Market Growth

• Transaction and investment volumes reach new heights — 2025 was marked by continued growth in the Dubai real estate market, which had already reached historical highs in 2024. In 2025, more than 170,000 residential property transactions were concluded, which is 40% more than two years ago. Investments in the sector exceeded AED 425 billion, demonstrating an annual increase of 30%. Record figures were already recorded in the third quarter of 2024, when the total value of transactions amounted to AED 116.8 billion ($ 31.7 billion) — an absolute quarterly record for the city. This trend continued in 2025, confirming Dubai's status as one of the most dynamically developing real estate markets in the world.
• Housing prices are growing in all market segments — positive dynamics are observed in all categories of residential real estate in Dubai. Apartments under construction have increased in price by an average of 5% in a year, reaching a price of AED 1,790 per square foot. This is the smallest increase in the last two years, indicating that the market is stabilizing. Completed apartments have shown a more significant increase of 9%, with an average price of AED 1,250 per square foot. In the villa segment, the dynamics are even more impressive: properties under construction have increased in price by 17% (AED 1,400 per square foot), and completed ones by a record 30%, reaching AED 1,300 per square foot. Experts predict that the price growth trend will continue in 2025 at 8% for the market as a whole and up to 10% in the premium segment. Some analysts allow for an even more significant increase of 10-15%, given the continuing shortage of supply, especially in prestigious locations.
• Robust rental demand and growth — Dubai’s rental market is also showing strong growth. On average, rental rates are expected to increase by 5-10%. Apartments in central areas could see a 10-12% increase due to limited supply, while prime locations such as Palm Jumeirah, Downtown Dubai and Dubai Marina could see up to 15% growth. More affordable outlying clusters such as Jumeirah Village Circle and Al Furjan are expected to see a moderate 2-5% increase. Key factors driving robust rental demand include:

1. A steady influx of expats and professionals, fueling the city’s population growth.
2. Development of business and financial clusters that attract new residents.
3. Effective government policies to attract investment and talent.
4. Stabilization of villa rental rates due to increased supply from developers.

• Population boom as a driver of housing demand — Dubai's population reached 3.814 million by the end of 2024, an impressive 4.7% increase over the year. Such demographic dynamics provide a high level of demand for residential property from both buyers and renters. The population growth is due to Dubai's attractiveness for expats and professionals from all over the world. The city offers a high standard of living, safety, modern infrastructure and favorable conditions for doing business. In addition, the introduction of new types of residence visas, such as the «golden visa» for investors and specialists, stimulates the influx of wealthy residents interested in buying or renting housing.

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Dubai — a stable haven for investors and residents

In recent years, real estate in Dubai has increased in price by more than 50%, but the market remains one of the most attractive for investment and for residents due to a number of factors:

1. No taxes on income and property ownership.
2. High rental yields – 5-7% per annum, and in some areas even higher.
3. Possibility of obtaining residency through real estate investment.
4. Simple and transparent purchase procedure, including remotely.
5. Modern infrastructure: hospitals, schools, roads, public transport.
6. The status of one of the safest megacities in the world.
7. Residence permit programs through investment, for example, a “golden visa” when buying real estate from 2 million dirhams.

Despite the rapid growth of prices, the Dubai real estate market is characterized by high transparency and minimal speculative activity. Experts assess the risk of a “bubble” as moderate, since the dynamics are largely due to real demand against the backdrop of a growing population and a lack of supply, especially in the villa segment. These factors make the Dubai real estate market extremely attractive to investors, expats and anyone looking for a safe and profitable investment with the prospect of receiving high rental income or an increase in the value of the asset.

Market Outlook — Stabilization and New Opportunities

Analysts predict that from 2025, the growth of real estate prices in Dubai will slow down and stabilize at 5-10% per year, which indicates the market’s transition to a more mature phase of development. However, even taking into account the introduction of new residential projects, a steady influx of investors is expected, due to a unique combination of factors: a high level of safety and quality of life, developed infrastructure and a constant influx of capital from around the world. According to experts, by the end of 2029, about 300 thousand more new residential properties will be built in Dubai, which will partially satisfy the high demand. However, the premium segment and unique locations are likely to remain in short supply, maintaining the potential for price and rental growth.

Thus, the Dubai real estate market in 2025 continues to demonstrate impressive results, attracting investors and buyers from all over the world. Record transaction volumes and stable price growth across all segments indicate high demand and confidence in the market. Despite the transition to a more moderate growth phase, the market remains promising due to a unique combination of factors: economic and political stability, a favorable tax regime, high quality of life and developed infrastructure. Dubai offers ample opportunities for investors interested in high rental income or property appreciation, as well as for expats and professionals seeking a comfortable and secure life in a dynamically developing metropolis. In the long term, the Dubai real estate market will retain its attractiveness, relying on stable demand due to demographic growth and capital inflow, as well as further development of the city’s infrastructure and economy.