Price surge may moderate as Dubai set to add 72,000 housing units

After setting new benchmarks in 2024, Dubai’s real estate market is poised for stabilisation as the population grows and over 72,000 residential units are set to enter the market in 2025.

While price growth may moderate, demand remains robust. Additionally, the launch of the Smart Rental Index in 2025 promises to enhance transparency and fairness in rental pricing, real estate experts said.

Last year, the market recorded 68,405 total sales transactions, with a transaction value reaching an unprecedented Dh423.36 billion —the highest in the city’s history. This represents a 30 per cent increase** in transaction value and a 40 per cent rise in transaction volume compared to the previous year, according to Betterhomes data.

“This impressive performance underscores investor confidence and robust demand, solidifying Dubai’s position as a global real estate leader. As we reflect on another year of incredible growth and transformation, I am reminded of what makes Dubai’s real estate market truly exceptional. It’s not just the skyscrapers or record-breaking transaction volumes—it’s the vision, resilience, and innovation that define this city,” said Louis Harding, chief executive officer of Betterhomes. “2024 has been a landmark year, and as we look ahead to 2025, we remain committed to guiding our clients and creating lasting value.”

The off-plan market has emerged as a significant driver of this growth, accounting for 63 per cent of total transactions and showing an impressive 66 per cent year-on-year growth. Meanwhile, the secondary market also contributed positively, recording a 14 per cent YoY increase, catering effectively to end-users looking for immediate ownership options.

Mohanad Alwadiya, CEO of Harbor Real Estate, wrote: The Dubai Urban Plan 2040 outlines a visionary framework centered on the development of five key urban hubs: Deira and Bur Dubai, Downtown and Business Bay, Dubai Marina and Jumeirah Beach Residence, Expo 2020 Center, and Dubai Silicon Oasis. These vibrant districts represent the heart of Dubai’s future urban growth, designed to accommodate a projected population of 5.8 million permanent residents, along with an 2.1 million comprising professionals and visitors.