1. Record Real Estate Sales in 2024

According to the Dubai Land Department (DLD), in 2024 the real estate sector recorded 226,000 transactions worth AED 761 billion, marking a 36% rise in transactions and 20% increase in value compared to 2023

 3. First Half 2025 Milestones

Dubai broke milestones with 125,538 total transactions in H1 2025—a 26% increase in deal count and 25% rise in total value, reaching around USD 117.5 billion (AED 431 billion)

4. Market Segment Highlights

 5. Supply & Market Balance

Despite surging demand, listings dropped ~50% in early 2025, helping sustain demand. January saw a slight price drop of ~0.6%, signaling stability amid strong activity 
Meanwhile, roughly 243,000 new units are scheduled for delivery by 2027, mainly apartments (~80%), likely easing pricing pressures

 6. What’s Driving the Growth?

▪️ Investor Interest from Abroad

Dubai’s strong appeal to foreigners is clear across markets—luxury and mid-tier alike

With zero property tax, 100% foreign ownership, and PropTech innovation (like tokenized deeds under DLD’s REES sandbox), Dubai offers transparency and convenience

▪️ Infrastructure Projects & Urban Expansion

Ongoing developments—including transport networks and master-planned communities—fuel demand in emerging and well-connected areas.

7. What Investors Should Know

Insight Why It Matters
Rental yields average 6–7%, with luxury short-lets gaining 8–12% Attractive ROI in top locations
Luxury demand strong: AED 10M+ transactions surged 20%+ Prime market continues to outperform
Off-plan dominance: >50% of transactions early 2025 Enables flexible payment and capital growth
Mid-range property pricing slightly down due to mix shift More affordable entry options without hurting volume
Oversupply risk: ~243,000 units by 2027 Could moderate price growth mid-term

 8. Easy Takeaway

Dubai’s property market enters 2025 with momentum, backed by record-breaking transaction values, strong rental returns, and broad investor confidence. While some pricing stabilization is expected, demand—especially for luxury and well-located offerings—remains robust. Insightful investors should watch upcoming supply, segment mix, and policies impacting transaction costs.

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