Dubai Real Estate Set for Strong Growth: Rising Rents, Expanding Market and Promising Opportunities in 2025
Date: 25-Dec-2024 | Category: News & Updates
Dubai’s real estate market is entering a top growth phase with experts predicting a surge in rental prices and property values in the coming years. According to the Dubai Land Department (DLD), real estate transactions in the first half of 2024 reached AED 177.4 billion ($48.3 billion) showing a 25% increase compared to the same period in 2023.
The market’s growth is expected to continue into 2025 fueled by factors such as population growth which is set to exceed 4 million and new regulations like 100% foreign ownership of commercial companies outside free zones. These changes, alongside the expansion of Dubai’s golden visa scheme are expected to increase demand for both commercial properties and luxury homes.
Dubai’s tourism sector is also contributing to the real estate boom. With more than 20 million visitors expected in 2024 demand for short-term rentals is high further boosted by events like COP28. Key residential areas like Dubai South, Jumeirah Village Circle and Dubai Hills Estate are set to see rising demand as more people move to the city.

The residential market in 2025 is expected to experience moderate price growth particularly in mid-range properties. With new developments such as Dubai Creek Harbour and Emaar’s Beachfront adding around 30,000 units, supply will start to balance with demand. Rental yields are expected to remain stable at 5-6% keeping Dubai attractive for investors especially in high-demand areas.
Reports suggest that rental prices could increase by approximately 18% for short-term leases and around 13% for long-term rentals by 2025. This shift is happening due to a mix of factors such as the city’s strong job market and the ongoing rise in property values.
The commercial sector is also set for growth with increasing demand for office spaces in prime locations like DIFC. The luxury property market will remain strong with areas like Palm Jumeirah and Emirates Hills continuing to attract high-net-worth individuals. Prices for luxury properties are projected to rise by 10-12% in 2025, making it an exciting year for investors in Dubai’s real estate market.