Where is Dubai’s property market heading in 2025?
In this week's episode of Dubai Real Estate Unplugged, host Luke Remmington is joined by fellow Managing Directors Simon Baker and Charlie Bannan to tackle the big question.
Building on last week's deep dive into the 2024 Market Report, they share unfiltered insights and bold predictions for the year ahead—covering expected population and price growth, the top communities to invest in, how tenants can protect themselves, and how AI will affect the real estate market moving forward.
What factors are driving Dubai’s continued growth?
Dubai’s population grew by 150,000 in 2024, with even more expected in 2025. With only 29,000 new units handed over, demand continues to outpace supply, driving property appreciation. Some projects slated for completion in 2025 may face delays, pushing handovers into 2026.
For the past two decades, steady population growth has fuelled strong demand for real estate. As Dubai’s expansion continues, Off Plan properties remain a dominant force in the market. Even prs with no plans to live in the city are placing their money here, recognising the value and near-guaranteed returns. Dubai’s rental yields outperform many global cities, offering returns up to 7-8% higher.
The ongoing improvement of infrastructure and connectivity in Dubai, including the expansion of metro lines and plans to enhance accessibility to Abu Dhabi, highlights the city's unwavering commitment to growth. Infrastructure serves as the backbone of a thriving economy, and as Dubai continues to invest in and nurture its infrastructure, this progress will undoubtedly be reflected in its sustained economic growth and global prominence.
Where should you invest in 2025?
Did you miss the boat on purchasing property in Dubai? Don’t worry—Dubai remains a hotspot, with more and more people wanting to move here and build a life. However, as we head into 2025, it’s more crucial than ever to be strategic with your investments.
The Dubai market is flooded with off-plan projects, but not all of them are destined for success. While glossy brochures and enticing offers might grab your attention, many developers are pricing an expected return directly into the purchase price. For buyers unfamiliar with the market or who haven’t done thorough research, these deals can seem more attractive than they really are.
To avoid potential pitfalls, we recommend two key strategies, one, analysing supply trends within the market, and two, focusing on trusted developers who have a proven track record of building successful communities.
For example, in 2024, we observed that 87% of the ready market consisted of apartments, while 89% of off-plan sales were also apartments. In contrast, villas accounted for only 1% of new off-plan supply, making them a much scarcer segment. This data highlights the importance of identifying both the property segment (apartments, villas, or townhouses) and the community within that segment that aligns with your investment goals. Certain developments are more likely to appreciate over time due to location, demand, and quality.
In the podcast, we discussed some standout communities that we recommend considering, such as The Oasis by Emaar and The Acres by Meraas. These developments offer unique features and strong potential for appreciation. For a deeper dive into why these communities stand out and how they compare to others, be sure to check out the full episode.
What should tenants expect in 2025?
Continuing from the previous year, rent prices are likely to continue increasing, albeit at a slower, steady pace. For this reason, we advise tenants to stay put for as long as they can. The rental index has provided a better structure for the market and more transparency for tenants, with resources such as the RERA Rental Calculator, which assesses your rent based on factors such as contract expiration date, location, property type, and current rent.
With more handovers happening in 2025 and well into 2026, we can expect an increase in supply which will in turn ease the price hikes for tenants.
Find out more on what tenants can expect in 2025: click here.
Will real estate agents be replaced by AI?
AI is transforming real estate by streamlining processes like property searches, valuations, and market research. However, it cannot replace the human expertise and local knowledge that agents bring. Real estate is more than data—it’s about relationships, trust, and creating a seamless journey for buyers and investors, something AI simply cannot replicate. The success of top developers in Dubai often hinges on their ability to deliver a personalised and human-centered experience.
While AI can make anyone seem knowledgeable, it also emphasises the need for buyers, sellers, and landlords to be more discerning. The role of skilled agents becomes even more vital in navigating the market with authentic insights and expertise. AI may assist, but the human touch will remain essential in ensuring successful transactions.
Should you buy or sell in 2025?
The question of whether to buy or sell in 2025 is a nuanced one, and the answer largely depends on your existing assets and investment goals. However, one thing is clear: it’s time to reevaluate your portfolio.
What was considered luxury a decade ago may no longer hold the same appeal today. To stay competitive in the market, it’s essential to get your properties properly valued and determine which assets to keep and which to let go. This evaluation will help you identify opportunities to optimise your portfolio.
We’re not suggesting you sell everything—far from it. Instead, consider releasing equity from older properties that may not perform as well in today’s market. You can then reinvest that equity into newer, higher-potential opportunities that align with current demand and trends.
Approaching 2025 with this strategic mindset can allow you to maximise your returns while ensuring your portfolio remains relevant and resilient in an ever-evolving real estate market.
