The first half of 2024 saw more than 220,000 people relocating to Dubai, said Sajwani
Dubai’s Real Estate Sector Booms as Population Growth Fuels Demand
The first half of 2024 has witnessed a significant influx of over 220,000 new residents into Dubai, further fueling the increasing demand for residential properties across the real estate landscape, according to Amira Sajwani, Managing Director of DAMAC Properties.
“The Dubai real estate sector is experiencing remarkable growth, with demand continuing to surge from both investors and end-users,” Sajwani stated during the launch of “Riverside Views,” the company’s first project set for 2025.
She emphasized that Dubai’s strategic position between Europe and Asia, combined with its investor-friendly policies, has made it a global hotspot for real estate investment.
Dubai’s Population Set to Hit 4 Million in 2025
“The demand for real estate in the UAE surpasses that of many other global markets. Some of our recent project launches have generated billions of dollars in sales within mere hours,” she added.
She further revealed that DAMAC’s latest Miami project, valued at over $1 billion, is designed by the renowned Zaha Hadid Architects.
A report by fäm Properties projects Dubai’s population to reach 4 million in 2025, which is expected to further drive real estate demand across various segments.
Dubai’s population growth rate has been a key factor in the city’s real estate expansion, with 2024 recording a 4.66 percent increase due to rising migration and economic activity. With forecasts predicting Dubai’s population to soar to 7.8 million by 2040, the real estate market is poised for long-term growth.
Real Estate Market on an Upward Trajectory in 2025
Dubai’s property market is expected to maintain its upward trajectory in 2025, supported by strong investor confidence, the expansion of luxury properties, and sustained residential demand. A combination of a robust economy, strategic government initiatives, and continued population growth further solidifies Dubai’s standing as a prime global investment hub.
In 2023, Dubai welcomed 110,000 new real estate investors, marking an impressive 55 percent growth. This remarkable surge highlights the emirate’s ability to cultivate a world-class investment ecosystem that attracts global investors while ensuring the sustainable expansion of its real estate sector.
Building upon this momentum, Dubai’s real estate sector achieved new milestones in 2024. The year recorded 217,000 property investments totaling AED526 billion, reflecting notable growth of 38 percent in transaction volume and 27 percent in value.
Furthermore, Dubai’s real estate market achieved an all-time high of 2.78 million transactions in 2024, encompassing both property deals and rental agreements—a 17 percent rise from 2023.
Property transactions alone reached 226,000, amassing a combined value of AED761 billion, demonstrating an annual growth of 36 percent in volume and 20 percent in value.
Investment Opportunities on the Rise in 2025
Dubai’s thriving real estate sector continues to attract investors, offering some of the world’s highest returns on investment. Data from DXB Interact indicates that investors reaped AED100.5 billion ($27.36 billion) from the sector, underscoring Dubai’s reputation as a lucrative property investment hub backed by strong demand, innovative developments, and government-driven incentives.
As the market evolves, certain key communities are emerging as high-growth investment areas for 2025. These sought-after locations cater to investors seeking well-located, family-oriented properties with strong rental yields.
According to haus & haus, Victory Heights has gained traction with a 5.3 percent rental yield and a 23 percent rise in price per square foot, positioning it as a compelling choice for long-term investors.
Meanwhile, Jumeirah Village Triangle (JVT) has experienced a remarkable 40 percent increase in price per square foot, alongside a 3.3 percent rental yield, making it an attractive option for future investments.
Dubai’s real estate sector continues to deliver some of the most competitive investment returns globally, attracting investors looking to diversify their portfolios. With a strong economic outlook and a stable political environment, Dubai is well-positioned to sustain its real estate growth, reinforcing its status as a leading global property investment destination.
