Learn about the future of Dubai’s property market in 2025, including stable prices, affordable housing trends, and a boom in off-plan property sales.
Dubai’s property market is expected to slow down a bit in 2025, with prices in some areas stabilizing, according to real estate experts at ValuStrat.
Even though growth might not be as fast as before, there’s still a lot of demand, especially since there aren’t enough properties to meet everyone’s needs.
“Investors should pay close attention to trends, especially in luxury villa areas,” ValuStrat suggested in their report.
They believe prices for big villas in premium locations might not go up as much and could even stay steady later in 2025.
Still, Dubai’s housing market is expected to grow, supported by a strong economy, more people wanting to buy, and increasing confidence in the market.
Experts predict property values will increase by 5-10% in 2025, which is slower than the growth seen in 2024.
Abdullah Alajaji, from Driven Properties, said demand for luxury and under-construction (off-plan) homes is expected to remain strong, showing that investors still believe in Dubai’s future developments.
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More People Buying Ready-to-Move Homes
In 2024, many people started buying homes they could move into right away, instead of renting.
This happened because rents were high, and mortgage rates dropped, making buying more affordable.
Ready-to-move-in home sales went up by 12.3%, while off-plan property sales shot up by 76.4% compared to 2023.
Affordable housing also became more popular. Nearly 40% of homes sold in 2024 were apartments priced under AED 1 million.
Lower borrowing costs, thanks to interest rate cuts, made it easier for tenants to become homeowners.
“Rising rents pushed people toward affordable housing and smaller apartments,” Alajaji said.
“We think these trends will continue in 2025. The high demand for under-construction properties shows that people trust Dubai’s future developments.”
By the end of 2024, apartment rents rose faster than villa rents, as some villa communities reached their price limits.
Many residents also switched to buying homes because of cheaper loans offered by the UAE’s Central Bank.
What to Expect in 2025
Dubai’s real estate market is set for steady growth in 2025, with strong demand and limited supply keeping things moving.
While some areas might see prices level out, the overall outlook is positive, with plenty of new developments and affordable options for buyers.
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