Dubai real estate market outlook for 2025 and beyond

In 2025, Dubai's real estate market continues to be a global leader, capturing the world's attention. The city's real estate market faces numerous opportunities and challenges due to its growing population, investor-friendly policies, and strong government support. On a larger scale, the market situation appears very favourable.

Market overview and near-term forecast

After a big surge of nearly 75% in property prices since 2021, experts now predict the Dubai real estate market to cool slightly. Fitch forecasts prices could drop by about 15% by late 2025 into 2026, as more than 210,000 new homes are set to be delivered in the next two years.

Even so, the market remains active. In fact, in Q2 2025, there were around 37000 off-plan sales, averaging AED 3.1 million, while the already built homes sales increased by over 10% in comparison to the previous quarter.

The rental market is also holding steady. Though annual rental growth slowed to 8.5% in May (down from 14.3% in January), demand continues to keep rents at healthy levels.

Supply surge and delivery dynamics

Dubai is set to see a big wave of new homes entering the market. In 2025 alone, around 66,600 units are expected, with 17,500 already handed over in the first half of the year. Some reports even indicate that there is a possibility of the numbers reaching 73,000 this year, adding up to approximately 300,000 new homes by 2028.

This sharp rise in supply: Cushman & Wakefield projects a 41% jump in residential handovers to over 42,000 units in 2025, should ease pressure on the market, helping to balance demand, stabilise prices, and keep rent increases below 10%.

Long-term growth 2025 and beyond

If we look beyond 2025, Dubai's property market clearly shows an expected rise at a steady and sustainable pace. And that's a relief! Many experts predict that by the end of 2025, there will be an annual growth of around 8-9%, with the overall market activity potentially reaching AED 143bn. In addition, prime properties are expected to rise by 5-10% through 2026.

This positive outlook is supported by strong demand, large-scale megaprojects, continuous infrastructure upgrades, and Dubai's reputation as a global haven for investors. Prime areas like Palm Jebel Ali and Meydan Avenue have already recorded price increases of over 200% in the last five years, highlighting the city's long-term potential.

What's making Dubai stand out?

For investors, Dubai is a safe global stage because rental yields here count around 5-9%, which is far higher than cities like London (2-4%) or New York (3-5%). Also, at the same time, property prices per square foot are relatively less compared to other major real estate markets, making Dubai an affordable option for you. Adding to this, with a tax-free scenario, no capital gains, income or property tax, the appeal becomes clear!

Some other perks, including steady population growth and initiatives like the Golden Visa, make Dubai all the more attractive, whether you're planning a long-term investment or following a property buying guide.

Checklist to follow before investing in Dubai property

• Right timing: Right from the start of 2025, Dubai is showing a smart entry point, so stick to that as prices may settle once the large wave of new supply hits the market.
• Completed homes: With so many ongoing projects under construction, buying a ready home offers quicker move-ins and fewer chances of delays.
• Rental yields: Popular areas like Dubai South, Business Bay, and JVC attract strong tenant demand, making them ideal for long-term returns.
• Established developers: Always consult trustworthy names who deliver on time and maintain transparency throughout the process.

Spotlight on exclusive developments

Now that you're confident about the property market, Benham and Reeves has a range of new homes in Dubai to help you make the right choice.

• Azizi Venice in Dubai South is a peaceful waterfront community with canal views and modern amenities, making it a well-connected place to live.
• Azizi Milan, situated in the vibrant Dubailand, offers large homes with convenient access to Dubai's central areas, appealing to families and investors alike.
• Aurora in Jumeirah Village Circle (JVC) offers modern living and a sense of community, attracting both residents and renters.
• In addition, Amber Hall in JVC provides a stylish design at an affordable price, making it an excellent choice for investment with value in mind.

Despite the recent slowdown in rapid price increases, Dubai's strong government support and world-class infrastructure continue to fuel its steady, long-term growth.

Making informed choices now can lead to rewarding results in the future, whether you're searching for a new home in Dubai or a good investment opportunity. Azizi Venice, Azizi Milan, Aurora, and Amber Hall and other new homes in Dubai combine lifestyle, value, and growth potential beautifully.

At Benham and Reeves, we're here to assist you in finding the ideal property and make the buying process seamless. Our team in Dubai is your reliable local partner. Get in touch and let's make your property dreams come true in one of the most exciting and dynamic markets in the world.