Launch of the Smart Rental Index in 2025 promises to enhance transparency.
Dubai Real Estate Market Eyes Stabilization in 2025 Amid Continued Growth
After setting remarkable records in 2024, Dubai’s real estate sector is now gearing up for a phase of stabilization in 2025. With the city’s population steadily increasing and over 72,000 residential units expected to hit the market, experts anticipate a dynamic yet balanced year ahead.
While price growth may ease slightly, the demand for properties in Dubai remains robust. A notable development for 2025 is the introduction of the Smart Rental Index, aimed at enhancing transparency and fairness in rental pricing, which is expected to further boost market confidence.
In 2024, Dubai’s real estate market witnessed 68,405 sales transactions, reaching an astonishing total transaction value of Dh423.36 billion, the highest in the city’s history. This represents a 30% surge in transaction value and a 40% increase in volume compared to the previous year, as per Betterhomes’ data.
“This remarkable performance highlights investor trust and sustained demand, cementing Dubai’s position as a global leader in real estate. Reflecting on yet another year of extraordinary growth, it is evident that what makes Dubai’s real estate market truly exceptional is not just its iconic skyscrapers or record-breaking deals—it’s the city’s vision, resilience, and innovation,” said Louis Harding, CEO of Betterhomes. “2024 has been a monumental year, and as we move into 2025, our focus remains on supporting clients and delivering long-term value.”
The off-plan property sector played a significant role in the market’s success, accounting for 63% of all transactions and registering a 66% year-on-year growth. Meanwhile, the secondary market also showed steady progress, with a 14% increase in transaction volume, catering to end-users seeking ready-to-move-in homes.
Dubai’s luxury real estate sector reached new peaks in 2024. Transactions involving properties priced over Dh15 million saw a significant increase, with 1,938 transactions recorded in the secondary market—a 63% rise compared to 2023.
The most expensive resale villa of 2024 was a Dh240.5 million property on Jumeirah Bay Island, while the priciest resale apartment was a Dh275 million unit at The One, Palm Jumeirah. Additionally, the year saw 40 super-prime transactions exceeding Dh100 million, reinforcing Dubai’s appeal to ultra-high-net-worth individuals seeking exclusive and luxurious properties.
Real estate analysts believe that Dubai’s exceptional performance in 2024 positions it for sustained growth and transformation. With its vibrant and diverse property options, the market remains a top choice for investors and homebuyers alike, offering opportunities in an ever-evolving landscape.
Mohanad Alwadiya, CEO of Harbor Real Estate, highlighted Dubai’s Urban Plan 2040, which focuses on developing five major urban hubs: Deira and Bur Dubai, Downtown and Business Bay, Dubai Marina and Jumeirah Beach Residence, Expo 2020 Center, and Dubai Silicon Oasis. This forward-thinking blueprint is designed to accommodate a projected population of 5.8 million permanent residents, along with 2.1 million professionals and visitors, creating a roadmap for Dubai’s future urban development.
As Dubai’s real estate market moves forward, its dynamic blend of innovation, resilience, and vision promises an exciting future, with countless opportunities for both investors and residents to thrive in one of the world’s most vibrant cities.
