As Dubai’s property market enters 2025, affordability will be a key focus. Despite generous payment plans offered by developers, housing has become less affordable due to rising costs and inflation. Buyers are increasingly concerned about their mortgage burdens with housing prices at their highest since 2007.

Unlike global markets where weak supply has driven up prices, the UAE has seen a surge in new property supply since the pandemic. This has led to even more generous payment plans but affordability remains a challenge, especially for buyers looking at off-plan versus ready properties.

To bridge the affordability gap, developers are focusing on cash flow and off-plan properties now make up the majority of sales. Meanwhile, investors are refurbishing older properties to bump up prices, but ready-home prices are starting to decline.

With buyers seeking more affordable options, properties on the outskirts are seeing price reductions. As institutional investors grow cautious, the distressed property market is gaining attention with more buyers turning to auctions.

In 2025, affordability will be at the forefront and developers will need to adjust prices or face potential government intervention to encourage more affordable options for buyers.