After a record-breaking 2024, Dubai’s real estate market is set to stabilise in 2025, supported by robust demand, a growing population, and the introduction of over 72,000 residential units, according to industry experts.
The market, which recorded a historic 68,405 total sales transactions valued at AED 423.36 billion in 2024, experienced a 30% increase in transaction value and a 40% rise in volume compared to the previous year, Betterhomes data revealed. This remarkable performance underscores investor confidence and positions Dubai as a global real estate leader.
Louis Harding, CEO of Betterhomes, highlighted the city’s resilience and innovation. “The incredible growth and transformation witnessed in 2024 reflect Dubai’s exceptional vision. Looking ahead, we remain dedicated to guiding our clients and creating lasting value.”
Off-Plan and Luxury Segments Drive Growth
The off-plan segment emerged as a key growth driver, accounting for 63% of total transactions and achieving a 66% year-on-year increase. The secondary market also performed well, with a 14% growth in transactions, catering to end-users seeking immediate ownership.
The luxury market reached unprecedented levels, with transactions involving properties worth over AED 15 million increasing by 63% year-on-year. In 2024, Dubai saw 1,938 luxury property transactions in the secondary market. The highest-value resale transactions included a AED 240.5 million villa on Jumeirah Bay Island and a AED 275 million apartment at The One on Palm Jumeirah.
Additionally, 40 super-prime transactions exceeding AED 100 million underscored the emirate’s appeal to high-net-worth individuals seeking bespoke properties and opulent lifestyles.
New Initiatives and Long-Term Vision
The upcoming Smart Rental Index, launching in 2025, is expected to improve transparency and fairness in rental pricing, further boosting market confidence.
Mohanad Alwadiya, CEO of Harbor Real Estate, pointed to the Dubai Urban Plan 2040 as a framework for sustainable growth. The plan envisions five key urban hubs: Deira and Bur Dubai, Downtown and Business Bay, Dubai Marina and Jumeirah Beach Residence, Expo 2020 Center, and Dubai Silicon Oasis. Designed to support a projected population of 5.8 million permanent residents and an additional 2.1 million professionals and visitors, these districts will anchor Dubai’s urban development.
Market Outlook
Analysts believe Dubai’s real estate market is well-positioned for continued transformation. With a focus on sustainable growth, luxury offerings, and innovative initiatives, the market remains attractive to investors and homebuyers seeking diverse opportunities in a vibrant, dynamic environment.
As Dubai enters 2025, its real estate sector is set to build on its successes while navigating emerging challenges, solidifying its reputation as a global hub for real estate innovation and investment.
