Dubai’s Real Estate Market Poised for Another Record-Breaking Year in 2025

Dubai’s real estate market is set to maintain its upward trajectory in 2025, driven by sustained investor confidence, an expanding luxury segment, and unprecedented commercial demand, according to Engel &Völkers Middle East’s latest report.

With strong economic fundamentals, population growth, and strategic government initiatives, Dubai continues to reinforce its position as one of the world’s most attractive real estate investment destinations.

In 2024, total residential real estate transactions surged by 40.3% to 170,992 units, more than five times the number recorded in 2020, reflecting the city’s growing appeal to both local and international buyers. The luxury sector remained a key driver of this growth, with sales of properties exceeding AED 10 million rising by 20.5% year-on-year, and Q4 narrowly surpassing the record-breaking performance of the same quarter in 2023. Off-plan transactions dominated the market, accounting for 63% of total sales, up from 54% in 2023, as investors sought high-potential opportunities amid a tightening secondary market.

The apartment sector played a critical role in this expansion, with transactions increasing by 47.6%, contributing to 89.6% of the overall real estate market’s growth. Popular investment hubs such as Jumeirah Village Circle, Business Bay, and Dubai Hills Estate led off-plan sales, while prime locations like Dubai Marina, Downtown Dubai, and Jumeirah Lakes Towers remained strongholds for ready-to-move properties. The consistent demand for high-quality developments continues to support price appreciation and solid rental yields, making Dubai an increasingly attractive destination for global investors.

The commercial real estate sector delivered another strong performance in 2024, reflecting Dubai’s growing prominence as a global business hub. With over 24,000 new businesses registered in the first half of 2024, demand for premium office spaces surged, pushing occupancy rates in DIFC, Downtown Dubai, and Business Bay to an exceptional 95-97%.

This demand-supply imbalance led to double-digit rental growth, with office rents rising by 11%, retail rents by 9.7%, and warehouse prices surging by 21.1%, highlighting the continued strength of Dubai’s commercial property market. Developers are responding to this demand,with Aldar Properties unveiling plans for a Grade A office tower on Sheikh Zayed Road, and further commercial launches expected in 2025.

Daniel Hadi, CEO of Engel &Völkers Middle East commented: “The combination of capital appreciation, high-rental yields and increasing foreign investment continues to solidify Dubai’s position as a top-tier global property market. As one of the world’s fastest growing real estate markets, we will continue to witness the emirate’s ability to attract global capital, high net-worth individuals and multinational corporations. The growth we witnessed in 2024 provided a solid foundation to anticipate another record-breaking year in 2025.”

Investor sentiment for 2025 remains highly optimistic, supported by new mega-developments such as Palm Jebel Ali and The Oasis, which cater to ultra-luxury buyers seeking exclusivity and long-term value. Additionally, Dubai’s government-led initiatives, including visa reforms, free zone incentives, and a streamlined regulatory framework, continue to enhance the city’s appeal to businesses and investors. The commercial sector is expected to see further expansion, particularly in high-demand districts such as DIFC, Business Bay, Jumeirah Lakes Towers, and Al Quoz, as companies seek Grade A office spaces and state-of-the-art industrial facilities.

With Dubai entering 2025 with strong economic momentum, its real estate market remains a magnet for global investors seeking stability, high returns, and long-term growth potential. The combination of record-breaking sales, a thriving luxury segment, an expanding commercial sector, and a supportive regulatory environment positions Dubai for yet another year of exceptional performance. With continued infrastructure investments, mega-project launches, and sustained foreign interest, the emirate’s real estate sector is well on track to surpass expectations, reinforcing its status as one of the most lucrative and resilient property markets worldwide.