Dubai’s property market has experienced significant growth in 2024, with transaction volumes and values reaching record highs. In 2024, Dubai recorded 180,987 real estate transactions valued at AED 522.5 billion (approximately $142.3 billion), marking a 36.5% increase in volume and a 27.2% rise in value compared to the previous year.
The off-plan sector played a pivotal role in this surge, accounting for 60.5% of total transactions, with 109,527 deals valued at AED 228.03 billion (approximately $62.08 billion).
This trend reflects strong investor confidence in Dubai’s future developments.
Looking ahead to 2025, the market is expected to maintain its momentum, driven by several key factors:
- Economic Policies and Regulations: Dubai’s implementation of investor-friendly policies, including allowing 100% foreign ownership of commercial companies outside free zones, is anticipated to boost investment in commercial real estate sectors such as offices and retail spaces.
- Tourism and Short-Term Rentals: The city’s tourism sector continues to thrive, with a record 9.31 million visitors in the first half of 2024. This influx supports a robust short-term rental market, which is expected to remain strong into 2025.
- Residential Market: The residential sector is projected to experience moderate price growth, particularly in mid-range properties. Prime residential values, including areas like Palm Jumeirah and Emirates Hills, have seen significant increases, and a more balanced growth is anticipated as supply aligns with demand.
- Commercial Real Estate: The commercial real estate sector, especially office spaces, is poised for substantial growth. The demand for flexible office spaces is increasing, and the introduction of green office spaces to meet sustainability goals is attracting environmentally-conscious corporations
- Luxury and Ultra-Luxury Segment: High-end properties continue to be a focal point, with the luxury property segment showing remarkable growth. Residential values across Dubai have risen significantly, with villas outperforming other sectors.
In summary, Dubai’s property market in 2025 is expected to continue its upward trajectory, supported by favorable economic policies, a thriving tourism sector, and sustained demand across various real estate segments.
