Deloitte has released its annual Dubai Real Estate Predictions report for 2025, highlighting that the Emirate’s reputation as a ‘safe-haven’ for investors remains solid, bolstered by a 5% increase in population, record-high residential transactions and robust economic expansion.
The residential market saw an exceptional 20% increase in sales prices and a 19% rise in rental rates in 2024. Villas continue to outperform apartments in price growth, while rental hikes remain steady across segments. The influx of new supply later in 2025 may stabilise price increases, but is unlikely to dampen the overall momentum of the sector.
“Dubai’s real estate sector continues to thrive due to strong investor confidence, a diversified economy, and a strategic vision for long-term urban development with a robust masterplan.
“It is driven by strong economic fundamentals, attractive lifestyle offerings, and progressive policies.
“The sustained influx of expatriates and tourists over the past year, coupled with major infrastructure projects, positions Dubai as one of the most dynamic real estate markets in the world.”
Oliver Morgan, Partner, Deloitte Middle East
Dubai’s residential market retained its upward trajectory, with average sales prices rising by 20% in 2024 to AED 1,597 per sq ft.
Sales transaction volumes surged in 2024, marking unprecedented levels with 44% of transactions in the secondary market. The demand for affordable, family-friendly villa communities and townhouses remains strong, according to Deloitte’s report.
Gross rental yields grew to 6.7%, reflecting the sustained demand across villas and apartments. Rent increases were most prominent in Dubailand, Meydan and International City, with year-on-year spikes ranging from 39% to 46%. The rental market remains dominated by cash buyers and existing residents seeking affordable villas and townhouses.
Dubai’s real estate sector is positioned for sustained growth, supported by ambitious Government initiatives, infrastructure projects and increasing foreign direct investment. The residential, commercial, and hospitality markets are expected to continue their upward trajectory, with moderate stabilisation in some segments due to increased supply.
As Dubai progresses towards its Dubai 2040 Urban Master Plan, Deloitte highlights that the city’s focus on sustainable urban development, transportation infrastructure, and smart city initiatives is anticipated to enhance attractiveness to investors and residents alike.
