The Dubai real estate market is poised for stabilisation in 2025, with rent increases expected to slow, supported by an influx of new properties and the implementation of a smart rental index. Industry leaders project a more balanced and sustainable environment, driven by data transparency and abundant supply.
“The new index will provide accurate pricing insights, empowering tenants and landlords to make informed decisions,”
said Rupert Simmonds, director of leasing at Betterhomes.
“An expected record-breaking 72,365 new units—a 171% increase from 2024—will temper rapid price growth seen in recent years.”
Betterhomes estimates over 163,000 housing units will enter the market between 2025 and 2026, primarily from pre-sales during 2022-2023. This surge is expected to stabilise prices further, balancing demand. While minor fluctuations may occur, Dubai’s robust economic fundamentals, strategic investments, and resilient global appeal are expected to sustain investor confidence.
Prominent areas such as Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay continue to attract strong demand from investors and end-users. In 2024, 27,000 units were delivered, comprising 77% apartments, 17% townhouses, and 6% villas—reflecting Dubai’s preference for vertical living.
To mitigate market overheating, UAE banks are restricted from financing the 4% Dubai Land Department fee and 2% brokerage fee for mortgages. With more than 9,000 units scheduled for handover in early 2025—41% concentrated in Sobha Hartland, Arjan, and JVC—the market remains dynamic.
Christopher Cina, director of development sales at Betterhomes, noted,
“Stabilisation, supported by record-breaking supply and global demand, positions Dubai as a premier real estate hub, paving the way for sustainable growth.”
With ambitious infrastructure projects and sustained foreign investment, the market is well-prepared for a steady 2025.
News Source: Khaleej Times
