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Dubai Real Estate to Add 61,580 New Homes in 2025

DUBAI REAL ESTATE MARKET TO SEE 61,580 NEW HOMES DELIVERED IN 2025

Dubai’s real estate market is on track for substantial growth in 2025, with 61,580 new homes projected, fueled by a population increase of nearly 90,000 in the first quarter alone. ValuStrat reports that apartment prices climbed 21.4%, while villa prices surged 30.3% year-on-year. Rental rates have also seen significant growth, making affordable housing increasingly scarce despite a growing supply—19% of which was delivered in Q1. The widening gap between supply and demand may lead to market adjustments, particularly as mortgage activity continues to slow. Meanwhile, the commercial sector remains strong, with office capital values up 29.1% and rents increasing 20.2%, underpinned by sustained economic momentum. Developers are ramping up construction to meet demand, yet delivery timelines remain a challenge. Investor confidence remains high, particularly in premium residential and commercial segments.

Dubai’s retail, hospitality, and industrial sectors continue to demonstrate strong momentum. Emaar recorded AED 4.6 billion in retail sales for 2024, with Dubai Mall drawing an impressive 111 million visitors. New retail destinations like Nad Al Sheba Mall are expanding overall market capacity and consumer reach. As of February 2025, the city offered more than 128,000 hotel rooms and 26,000 hotel apartments, with average daily rates rising to AED 702. The industrial sector achieved a 12.7% annual profit, driven by growing demand for logistics and storage, pushing the ValuStrat Price Index (VPI) to 152.2 points. Tourism continues to be a key driver of retail and hospitality performance, supported by ongoing government initiatives. Additionally, strategic investments in logistics infrastructure are positioning Dubai as a regional hub for trade and warehousing.
Dubai’s retail, hospitality, and industrial sectors continue to demonstrate strong momentum. Emaar recorded AED 4.6 billion in retail sales for 2024, with Dubai Mall drawing an impressive 111 million visitors. New retail destinations like Nad Al Sheba Mall are expanding overall market capacity and consumer reach. As of February 2025, the city offered more than 128,000 hotel rooms and 26,000 hotel apartments, with average daily rates rising to AED 702. The industrial sector achieved a 12.7% annual profit, driven by growing demand for logistics and storage, pushing the ValuStrat Price Index (VPI) to 152.2 points. Tourism continues to be a key driver of retail and hospitality performance, supported by ongoing government initiatives. Additionally, strategic investments in logistics infrastructure are positioning Dubai as a regional hub for trade and warehousing.

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