Key Dubai Real Estate Insights Every Buyer Should Know in 2025

Dubai’s real estate market entered 2025 backed by several years of impressive growth. According to Savills, 2024 marked the fourth consecutive year of rising transaction volumes and capital values in Dubai’s property sector. This sustained upswing is underpinned by Dubai’s appeal as a safe-haven market and the UAE’s robust economy. 

Deloitte’s latest report highlights that Dubai’s population exceeded 3.8 million in 2024 (growing 5% year-on-year) and annual tourist visits reached 18.7 million (up 9% from 2023), contributing to healthy real estate demand. Even amid global economic challenges, investors’ confidence in Dubai remains high, which is a testament to the city’s diversified economy and pro-investment policies.

Surging Transactions and Off-Plan Dominance

Those planning to buy property in Dubai should be aware that transaction activity in Dubai is near record highs. Knight Frank According to Knight Frank, around 43,000 residential transactions were recorded in Q1 2025, with a total value of AED 114.7 billion, which reflects continued strong activity in the market. Notably, off-plan properties account for 69% of those sales. 

Off-plan sales are being fuelled by a wave of new project launches. According to Commercial Real Estate Investment’s (CBRE) ‘UAE Real Estate Market Review for Q1 2025’, more than 25,000 new residential units were launched in the first quarter of 2025, mainly in waterfront destinations and affordable communities, as developers are eager to capitalise on demand. 

Prices Reach New Highs 

Deloitte reports that by the end of 2024, average residential prices were about 20% higher than a year prior, while rents were up roughly 19% year-on-year. 

Knight Frank’s figures confirm the trend, showing that citywide residential prices rose another 3.7% in Q1 2025, pushing average values 17.6% above the 2014 peak.

Villas have led the growth, outpacing the apartment segments, with prices soaring by 3.9% in Q1 2025, representing a 43.5% increase since 2014.

Luxury Segment Leads the Market

Dubai’s prime and luxury residential segment has been a standout performer that every upscale buyer or investor should note. Savills reports a tenfold surge in high-end home sales over the past few years, from just 469 prime transactions in 2020 to 4,670 in 2024. This momentum continues in 2025 with over 1,300 homes priced above AED 10 million sold in Q1, a 31% increase compared to Q1 2024. 

According to Knight Frank’s Wealth Report 2025, Dubai’s prime prices are expected to see further growth (around 5% in 2025) thanks to limited new luxury supply and a rapidly growing population of affluent buyers. 

2025 Outlook: Opportunities and What to Expect

Experts from multiple firms anticipate continued growth in 2025, but with some moderation by the end of the year. Deloitte’s Middle East real estate outlook expects Dubai’s residential prices and rents to keep rising in 2025, though the pace of growth may stabilise as new supply is delivered in late 2025. 

Buyers in 2025 can expect the market to remain competitive, especially in the first half of the year, but they may see slightly more negotiability or choice by the end of the year as thousands of new units under construction reach completion. CBRE underscores that undersupply remains a concern in the near term across most segments, which is why both rents and sale prices have been rising in tandem.

In summary, 2025 offers a dynamic yet promising landscape for property buyers in Dubai. The market is powered by strong fundamentals, including a growing population, investor inflows, and a diversified economy. Residential values are at historic highs, and while more supply is on the horizon, demand still surpasses availability in many segments.

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