In 2024, total residential real estate transactions surged by 40.3% to 170,992 units
Dubai’s Real Estate Market Poised for Continued Growth in 2025
Dubai, UAE – Dubai’s property market is expected to sustain its upward momentum in 2025, fueled by steady investor confidence, an expanding luxury segment, and record-breaking demand for commercial spaces, as highlighted in the latest report from Engel & Völkers Middle East.
With robust economic growth, a rising population, and proactive government policies, Dubai continues to solidify its reputation as one of the world’s most attractive real estate investment hubs.
In 2024, the total number of residential real estate transactions surged by 40.3%, reaching 170,992 units—over five times the figure recorded in 2020. This surge underscores the growing appeal of Dubai’s property market to both local and international buyers. The luxury segment was a key contributor to this growth, with property sales exceeding AED 10 million increasing by 20.5% year-on-year. The fourth quarter narrowly outperformed the same period in 2023, setting new records. Off-plan transactions dominated, accounting for 63% of total sales—an increase from 54% in 2023—as investors capitalized on high-value opportunities amid a tightening secondary market.
Apartments played a crucial role in this expansion, with transactions increasing by 47.6%, making up 89.6% of the market’s overall growth. Key investment areas such as Jumeirah Village Circle, Business Bay, and Dubai Hills Estate led off-plan sales, while established locations like Dubai Marina, Downtown Dubai, and Jumeirah Lakes Towers remained top choices for ready-to-move properties. Strong demand for high-quality developments continues to drive property value appreciation and rental yield growth, making Dubai an increasingly attractive destination for global investors.
Dubai’s commercial property sector also performed exceptionally well in 2024, reinforcing the city’s status as a thriving global business hub. More than 24,000 new companies were registered in the first half of 2024, spurring a surge in demand for premium office spaces. Occupancy rates in key districts such as DIFC, Downtown Dubai, and Business Bay reached an impressive 95-97%.
The market imbalance between supply and demand contributed to double-digit rental growth, with office rents increasing by 11%, retail spaces by 9.7%, and warehouse prices soaring by 21.1%. This upward trend highlights the resilience of Dubai’s commercial property market. Developers are responding to the growing demand, with Aldar Properties announcing plans for a Grade A office tower on Sheikh Zayed Road, alongside further commercial projects slated for launch in 2025.
Daniel Hadi, CEO of Engel & Völkers Middle East, remarked: “The combination of capital appreciation, strong rental yields, and increasing foreign investment continues to strengthen Dubai’s position as a leading global property market. With one of the fastest-growing real estate sectors worldwide, Dubai is set to attract more global capital, high-net-worth individuals, and multinational corporations. The exceptional growth in 2024 has laid a solid foundation for another record-setting year in 2025.”
Investor confidence remains strong for 2025, bolstered by new large-scale developments such as Palm Jebel Ali and The Oasis, designed for ultra-luxury buyers seeking exclusivity and long-term value. Dubai’s investor-friendly policies, including visa reforms, free zone incentives, and a streamlined regulatory framework, continue to enhance the city’s appeal to businesses and investors alike. The commercial sector is also expected to expand further, particularly in high-demand areas like DIFC, Business Bay, Jumeirah Lakes Towers, and Al Quoz, as companies seek top-tier office spaces and state-of-the-art industrial facilities.
As Dubai moves into 2025 with strong economic momentum, its real estate market remains a prime destination for global investors looking for stability, high returns, and long-term growth. With record-breaking sales, a flourishing luxury segment, an expanding commercial sector, and a supportive regulatory environment, the city is well-positioned for another stellar year. Continued infrastructure investments, mega-project launches, and sustained foreign interest further cement Dubai’s standing as one of the most dynamic and resilient property markets worldwide.
