According to industry experts, Dubai’s real estate market is set for a more moderate yet sustained price rise of 5-10% in 2025. This comes after years of soaring price increases, as the market adapts to evolving global and local dynamics. The demand for affordable housing is expected to drive growth this year, particularly in the off-plan segment. At the same time, the luxury property market remains strong, buoyed by Dubai’s enduring appeal to high-net-worth individuals. Iconic developments like branded residences on Palm Jumeirah continue to attract affluent international buyers.

While global factors like interest rate fluctuations may impact sentiment, Dubai’s investor-friendly policies, strong infrastructure, and growing population – projected to reach 7.8 million by 2040 – are key drivers for sustained demand. 

The city’s ability to balance rapid development with long-term market stability remains a defining factor. Developers are ramping up construction to address supply shortages in high-demand areas like Downtown Dubai, Marina, and Palm Jumeirah. Flexible payment plans and future-ready designs keep off-plan properties competitive, particularly in these key areas.

Despite concerns of a slowdown, Dubai’s property market has shown resilience, with property values surging by 41% in the first half of 2024. Strategic reforms, robust foreign investment, and a diversified economy position Dubai as a global real estate leader, promising long-term value for investors.