Real estate in Dubai: the market shows record stability and steady growth

Real estate in Dubai: the market shows record stability and steady growth

The housing market in one of the most famous emirates continues its upward and stable dynamics: prices have been rising for 57 consecutive months.

According to experts at Property Monitor and Sotheby's International Realty, there has not been such a prolonged upturn since Dubai's active expansion into the international investment market. Experts attribute the main growth to the sale of premium properties. Currently, the cost per square meter in these properties consistently exceeds 7,000 dirhams ($1,900).

The luxury segment is where the main buyer interest is currently focused. Economic instability and changes in tax legislation in many countries are contributing to an increase in purchases of premium real estate. This applies to investors from Europe, India, and Russia who are interested in the unique advantages of Dubai. The absence of income tax, flexible visa programs, including the “golden visa,” and a stable legal environment make it one of the most attractive markets for placing highly liquid assets.

The results for the first half of 2025 showed the following: the volume of villa transactions reached AED 20.5 billion ($5.58 billion), which represents a 57% increase compared to the same period last year. The growth in demand for projects under construction is also significant, at 30%.

Dubai's growing population, which exceeds 3.7 million people, is stimulating further development of residential infrastructure in Palm Jumeirah, Emirates Hills, and Dubai Hills Estate.

Growing demand puts pressure on the middle class. Along with the increase in transaction values, there has also been an increase in rental rates. Rents in key areas for 2025 have increased by an average of 19%. While the price of a standard villa is currently around AED 7 million ($1.9 million), analysts predict that by the end of this year, the figure could rise to AED 8-8.5 million ($2.18-2.31 million).

Experts at the auditing firm Deloitte note that the UAE's GDP growth of 6.2% is the foundation for further strengthening of the sector. And even with a short-term correction of 5-8%, this is perceived by the market as a natural phase after a rapid rise.

Developers are responding actively—they plan to launch 19,700 new properties in the premium segment by the end of 2026. Moreover, reselling real estate on the secondary market brings investors 20% to 30% per annum, making Dubai one of the most profitable destinations in the luxury class.

So, Dubai is strengthening its status as an international investment hub and a global magnet for capital and comfort. Will the current pace continue? The answer to this question will be revealed in the coming quarter, but the trend towards sustainable growth is already evident today.

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