Comparison between 2024 market and 2025 Market Prediction

Dubai Properties’ business cycle is at its peak nowadays with its unnaturally high prices. The year 2024 saw a major hike in property prices in Dubai creating an imbalance between the demand for affordable housing options and luxury homes. But as per the top real estate consultant ValuStrat, the property prices are likely to be more stable this year. As per the reports, of luxury villas in Dubai’s prime location, the price growth will be slow in comparison to the previous years. Let’s have a look at the growth predictions of the Dubai real estate market in 2025 in comparison to the year 2024.

Present Dubai Market Condition

As per the estimation for the year 2025, the growth of the real estate Dubai market will be quite steady. The year might fill up the huge gap between the demand and supply of luxury property and their prices. Come on and let’s break down the current market condition of Dubai real estate for a deeper analysis:

• Economic Condition:

As per the prediction of the UAE Central Bank Dubai will project a growth of 6.2% in this 2025 year, and real estate will contribute more towards the growth.

• Increase in Housing Supply:

It is expected that by the year 2026, more than 182,000 units will be added in the real estate. An approximated 76,000 properties will be completed in the year 2025. These new houses will focus on the demand for both high-range to mid-range houses in Dubai.

• Growth in Transaction:

In the year 2024, Dubai City experienced around 41% of the rise in luxury property prices. And do you know the wonderful part? Almost 43,000 transactions were fully paid and completed in just the first half of the year.

Given below is the tabular representation of the above-stated facts for a better understanding. Take a look at it:

Why Dubai Properties investment is recommended?

• No requirement to pay annual property tax
• Prime location advantages, connecting the residential flats with the global market
• High rental yields, helping investors earn a good amount of passive income.

Luxury vs. Affordable Living

The real estate industry of Dubai is divided into two major parts, one is luxury living and other is affordable living. Both of them are poles apart, with a huge gap that gradually increased in the year 2024. Below we will tell you the basics of both these types of houses:

Luxury Housing

Generally High Net-worth individuals are more drawn towards this housing type:

• These properties are generally in high-end areas such as Palm Jumeirah, Emirates Hills, and Downtown Dubai.
• The residents here get a chance to experience exquisite facilities such as Private Pools, a state-of-the-art gym, and concierge services.
• Price tags of these villas begin from $25 million in the market.

Affordable Housing

This housing sector of Dubai puts more emphasis on the:

• Families and professionals with mid-income.
• You will find these flats in the areas such as Jumeirah Village Circle and Dubai South.
• These projects come with the competitive price in the market.

For a better understanding, look at the tabular comparison between them below:

Looking at the trends, it might not be wrong to say that the future of Dubai real estate market sounds quite promising with a significant growth.