Key Dubai Real Estate Insights Every Buyer Should Know in 2025

Dubai’s real estate market entered 2025 following several years of sustained growth. According to a report by Savills, 2024 marked the fourth consecutive year of rising transaction volumes and capital values across the emirate . This sustained momentum is underpinned by Dubai’s appeal as a safe-haven destination and the UAE’s robust economy. 

Deloitte’s latest report highlights that Dubai’s population exceeded 3.8 million in 2024, a 5% year-on-year increase, while annual tourist visits reached 18.7 million, up 9% from 2023. These dynamics continue to support 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. Dubai’s commitment to long-term urban planning, lifestyle-focused communities, and transparent regulations further strengthens its position as a leading global market for luxury property buyers.

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. According to Knight Frank, around 43,000 residential transactions were recorded in Q1 2025, with a total value of AED 114.7 billion, reflecting continued activity in the market. Notably, off-plan properties account for 69% of these sales. 

Off-plan sales are being driven by a wave of new project launches. According to CBRE’s UAE Real Estate Market Review for Q1 2025, more than 25,000 new residential units were launched in the first quarter of 2025, primarily in waterfront destinations and well-connected emerging communities, as developers respond to sustained appetite from buyers.. 

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 report reinforce this upward trajectory, showing that citywide residential prices increased further 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 climbing 3.9% in Q1 2025, representing a 43.5% increase since 2014. This sustained performance reflects the continued appeal of spacious, lifestyle-oriented homes, particularly in master-planned luxury communities that offer privacy, strong connectivity, and a distinct sense of place.

Luxury Segment Leads the Market

Dubai’s prime and luxury residential segment has been a standout performer that every 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 grow further 5% in 2025,driven by limited new luxury supply and a rapidly growing population of affluent buyers. Demand for signature residences, exclusive waterfront settings, and branded lifestyle communities continues to strengthen Dubai’s standing as a global hub for premium property investment.

2025 Outlook: Opportunities and What to Expect

Industry experts anticipate continued growth in 2025, with some moderation by the end of the year. Deloitte’s Middle East real estate outlook expects continued increase in residential prices and rents in 2025, with growth likely to 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, with more options to choose from as more units set for delivery post construction. CBRE notes that undersupply remains a near-term challenge across most segments, which is why rents and sale prices continue to rise simultaneously.

2025 presents a dynamic yet promising landscape for property buyers in Dubai. The market is supported by strong fundamentals, including a growing population, investor inflows, and a resilient, diversified economy. Residential values are at historic highs, and while more supply is on the horizon, demand still outpaces availability in several key segments.

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