Dubai developers are energising the premium and budget housing market

Dubai developers are energising the premium and budget housing market

Dubai's property market experienced a real boom in 2025, with leading developers skilfully balancing high-end projects with affordable options. According to analysts, total transaction volume exceeded AED 150bn, with notable growth in both the ultra-expensive and mass housing segments. This is no coincidence: developers like Emaar and Damac have been aggressively introducing flexible payment schemes, marketing campaigns and innovative designs to attract different categories of buyers, from billionaires to young families.

The premium segment boomed, with sales of properties priced above AED15 million (about $4 million) up 26 percent year-on-year. Record transactions were recorded in areas like Palm Jumeirah and Dubai Hills Estate, where villas went for AED 100-170 million. Branded residences played a key role here - partnerships with luxury brands such as fashion giants or car brands added prestige and raised prices by 60-80%. Investors from Europe, Asia and the United States flocked to Dubai thanks to the stable economy, absence of income taxes and ‘golden visas’ for 10 years. Experts note that such demand encourages developers to launch new projects on a weekly basis, focusing on ‘quiet luxury’ - minimalist design with views of the Gulf.

The budget sector is not lagging behind, with deals for homes cheaper than AED2m accounting for more than half of the market. Neighbourhoods like Jumeirah Village Circle and Dubai South have become hubs for migrants and middle-income locals. Developers are responding by offering interest-free instalments and compact apartments with an ROI of 7-9%. Dubai's population is growing at the expense of expats - the influx will exceed 100,000 in 2025 - which is creating a steady demand. There are no signs of oversupply: projects are being built to meet real needs, with an emphasis on mixed-use developments where housing is combined with offices and parks.

In 2026, the trend will continue, but price growth will slow to 5-8 percent. Developers will continue to diversify their portfolios, introducing green technology and smart homes. For investors, this is a chance: luxury provides prestige, while budget properties offer stable rental income. Dubai confirms its status as a global leader, where property is not just an asset, but a lifestyle.

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