The real estate market in Dubai brings with it numbers that predict a promising 2025, although many experts claim that tension could rise. After a successful 2024 in Dubai, economic analysts observed that the growth of real estate developments and the increase in demand represent a significant issue to consider.
According to Emaar Properties, agents and entrepreneurs must begin to be more cautious due to the significant rise in property prices. Dubai has become the preferred site for foreign businesspeople and expatriates since its opening in 2002, which earned it the title of the best investment destination in the world. However, not everything that glitters is gold, and analysts highlight the items to consider starting in 2025.
The perspective of experts on Dubai’s market
The arrival of Donald Trump to the United States government gave an optimistic vision to big developers like Emaar. However, the authorities of this major company in Dubai view with concern the continuous rise in property values because they believe it could negatively affect the “goose that lays the golden eggs,” as stated by Mohamed Alaabar, owner of the company.
The justification for this premise is that, due to the large number of luxury buildings and residences being constructed in the city, investors must continue to attract new residents to occupy those spaces, while more affordable housing is required to prevent expatriates from choosing other, cheaper destinations to live in, at a time when inflation is a concern along with the rising cost of living.
Rising prices and risks in Dubai: the outlook for 2025
The real estate market in Dubai recorded an increase in the price of its luxury homes, which, according to specialists, exceed half a million dollars. According to different real estate companies, the value of residences will increase by 8% during 2025, while premium homes will see a price rise of 5%, surpassing London and New York.
The number of projects and developments continues to grow significantly in recent times, and Emaar plans to complete between 6,000 and 7,000 homes in 2026 and 2027. Although this reflects a booming market, many economic experts argue that the excess of off-plan projects could pose risks because many buyers might fail to meet the deadlines. This is in addition to the fact that prices are so high that many residents have been pushed out of Greater Dubai to other more affordable areas, within the reach of the middle-income earners of the city.
Stagnant sales, another concern in Dubai
Specialists from successful developers such as Emaar assert that demand remains strong, but sales have stalled because sales values and rents have reached their peak. This slowdown occurs in a specific type of investment, which is off-plan housing. This type of investment is the one that allows buying before a project is completed, and this possibility also entails risks.
Those responsible for making these offers must reduce their values before the completion of the work, and the price dropped from 1700 dirhams to 1600 (436 dollars) during 2024. Despite these warnings, analysts assert that good times will continue, and the winds of the real estate market in Dubai will remain favorable. All this with the help of favorable government policies in the United Arab Emirates, such as the golden visas that attract companies and international funds.
