What’s in store for Dubai’s real estate sector in 2025?
The UAE’s real estate sector has enjoyed yet another bumper year in 2024, shattering numerous records along the way. While activity has remained strong across the nation – with locations like Abu Dhabi and Ras Al-Khaimah registering strong performances – Dubai has represented a particular bright spot, cementing its reputation as a magnet for both domestic and international property investment.
In Q3 2024, for example, Dubai’s real estate sector marked its 17th consecutive quarter of price growth. According to data released by Cushman & Wakefield Core, the market registered a 20% year-on-year uptick in residential sales values during this period, supported by the delivery of more than 9,000 new units.
Analysts expect an additional 10,700 residential units to be delivered in Q4 2024, which – if accurate – would bring Dubai’s annual total to approximately 33,600 new homes. Put simply, our Emirate’s property market is flying right now, but is this winning streak likely to persist into 2025?
In the following blog, I highlight some of the trends I expect to see in Dubai’s real estate sector during the coming 12 months.
Sustained growth
While it’s impossible to predict future levels of market activity with certainty, all major metrics suggest that Dubai’s property market will continue to expand. Supply looks set to increase significantly over the medium term, with approximately 41,000 and 42,000 units expected to be delivered in 2025 and 2026, respectively.
The ongoing expansion of Dubai’s visa programme – especially its much sought-after Golden Visas – is also playing a central role in attracting wealth to our Emirate and catalysing growth in its residential space. Ultra-high-net-worth individuals (UHNWIs) are on course to spend approximately $4.4 billion on Dubai property in 2024, representing a 26% year-on-year rise, according to DHF Capital S.A. Moreover, analysts project that the number of UHNWIs in our Emirate will grow by an additional 60% by 2026, suggesting that we will witness a sustained inflow of investment over the next 12 months.
Fuelled by savvy government initiatives, a thriving local economy and an influx of global wealth, it seems likely that Dubai will continue to see high levels of demand in its real estate sector into 2025.
Greener, leaner developments
Another trend within Dubai’s real estate sector that I expect to accelerate over the coming year is the shift towards environmentally responsible design, low-carbon energy solutions and smart home technology.
At DAMAC Properties, our team is constantly pushing the boundaries of sustainable innovation to deliver efficient, eco-conscious and connected projects and communities that are equipped to meet the requirements of contemporary buyers and future generations. Last year, for instance, we announced the UAE’s first pre-certified LEED Platinum community in the form of DAMAC Lagoons. Themed around eight key sustainability principles, this pioneering development is designed to minimise energy and water consumption, waste and CO2 emissions at the community scale.
DAMAC Properties is one of several forward-thinking developers committed to integrating green spaces, energy-efficient building materials and advanced technologies into its projects, delivering genuine sustainability that enhances rather than detracts from residents’ living experiences. Such developments will play a pivotal role in enabling the UAE to achieve its ambitious goal of net-zero emissions by 2050, which is why I believe greener, more efficient real estate projects will continue to proliferate in 2025.
Off-plan demand
The final trend that I expect will persist in 2025 is sustained demand within Dubai’s off-plan property space. This segment has performed extremely well throughout the past 12 months, with the latest market statistics showing that our Emirate registered a 51% year-on-year increase in off-plan transaction volumes in Q3 2024.
Rent and price rises in the ready-home segment are driving strong levels of interest in off-plan developments, as growing numbers of prospective buyers look to get a foot on the Dubai property ladder while maximising the amount of real estate they acquire for their investment. Thanks to the launch of superior-quality vertical, waterfront and green communities by developers like DAMAC Properties, not to mention attractive incentives and innovative financing options, high-end homes are now within the reach of more people than ever before.
With Dubai’s population on course to grow from its current level of 3.8 million to reach 5.8 million people by 2040, I believe our Emirate’s off-plan segment will continue to witness robust demand throughout 2025 and beyond.
So, how are these trends likely to impact Dubai’s real estate market in 2025? Well, a continued influx of UHNWIs, the delivery of fresh inventory, further advancements in efficiency and sustainability, and the launch of additional high-quality off-plan developments make for an immensely positive outlook.
Provided our sector can maintain momentum and build on its recent successes, I am confident that 2025 will be another positive year. Whether you are looking for your dream home or a lucrative investment opportunity, Dubai’s property market has never been more appealing.
