The Dubai real estate market has experienced significant price hikes over the past few years. However, industry experts predict a moderation in 2025, with residential property prices expected to increase at a more sustainable rate of 5% to 10%.
The demand for affordable housing is set to shape Dubai’s housing outlook in 2025. Off-plan properties are projected to witness robust demand, while luxury developments will continue to play a crucial role in strengthening market fundamentals.
Despite global economic challenges, such as fluctuating interest rates, Dubai’s investor-friendly policies and strong infrastructure are expected to maintain its appeal among both residents and high-net-worth individuals.
Farooq Syed, CEO of Springfield Properties, predicts a 5% to 10% increase in residential prices, driven primarily by off-plan property demand. He emphasized Dubai’s ability to balance rapid expansion with policies focused on stability and long-term value creation.
Akshay Nagdev, Managing Partner at Foremen Fiefdom, highlighted the growing importance of affordable and mid-range property developments. He noted that Dubai’s increasing population and its appeal to global professionals are key drivers of this demand.
In the first half of 2024, Dubai’s property market demonstrated remarkable resilience, with property prices surging by 41% and over 43,000 transactions completed. This growth was powered by government reforms, strong foreign investment, and an economic landscape diversified beyond oil.
Looking ahead, the UAE Central Bank forecasts a 6.2% national GDP growth, supported by smart city initiatives and sustainable development strategies.
While affordable housing gains traction, Dubai’s luxury property market continues to thrive. Iconic developments, such as branded residences in Palm Jumeirah, remain highly attractive to affluent international buyers.
Record-breaking sales, including the recent sell-out of Palm Jebel Ali villas, underline the strength of this segment. Residential sales values increased by approximately 34.45% year-on-year as of Q3 2024, reflecting strong investor confidence.
While affordable housing gains traction, Dubai’s luxury property market continues to thrive. Iconic developments, such as branded residences in Palm Jumeirah, remain highly attractive to affluent international buyers.
Record-breaking sales, including the recent sell-out of Palm Jebel Ali villas, underline the strength of this segment. Residential sales values increased by approximately 34.45% year-on-year as of Q3 2024, reflecting strong investor confidence.
Dubai’s real estate market enters 2025 with a clear path toward sustainable growth. Balancing affordability, luxury, and innovation, the city remains a preferred global destination for property investment. With strong policies, growing demand, and investor confidence, Dubai is set to redefine global real estate benchmarks in the years to come.
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