Dubai real estate continues to impress in 2025. After a strong first half, indicators are showing both exciting opportunities and some signals of moderation. For Gursaya Real Estate and its clients, this means balancing optimism with prudence.
Key Highlights
- Soaring Transaction Volumes
- In H1 2025, Dubai saw residential sales volumes surpass AED 400 billion, a ~25% rise year-on-year.
- Property transactions have surged: apartments dominate the market in number of deals, villas lead in price growth.
- Strong Price Appreciation, Especially in Villas
- Villa prices are rising faster than apartments. For instance, in August 2025 villa prices leapt ~27% year-on-year. Apartments also appreciated (~17-18% per reports).
- Certain luxury and branded communities (Palm Jumeirah, Emirates Hills, etc.) showing the sharpest gains.
- Rental Market Cooling & Tenant Advantages
- With a large wave of new supply coming online (≈ 93,000 units launched year-to-date), landlords are introducing incentives: free rent months, utilities included, multiple-cheque options, etc.
- Rent growth is slowing: modest month-on-month increases (1-2%), with high-quality upgraded units commanding premiums.
- Supply Surge Ahead — Modest Corrections Possible
- Moody’s forecasts that with over 150,000 new homes expected to be delivered between 2025–2027, housing stock will rise by ~20%. That could lead to price softening or moderate corrections starting 2026.
- Some segments (especially mid-market apartments) could be vulnerable if supply outpaces demand. Villas likely to remain in better shape in the near term.
- Investor Sentiment & Foreign Demand
- Foreign buyer interest remains strong. Weakness in certain currencies (vs. the dirham) is making Dubai relatively more attractive to overseas investors.
- Notable big money: private equity interest (e.g. stake in platforms like Property Finder) shows confidence.
Implications for Gursaya Real Estate & Clients
- For Buyers: Now could be a sweet spot to lock in property — especially with developers offering incentives. Luxury villas still appreciating, so for those aiming for high net worth or prestige homes, the premium is being paid. Mid-market buyers will have more options soon, possibly with better pricing or bargaining power, especially from 2026.
- For Sellers/Developers: Price growth remains strong, but risk of oversupply means that design, location, amenities, and phasing will matter more. Properties outside premium neighborhoods should ensure differentiation.
- For Investors: Rental yields are good, especially for apartments in mid-market or emerging communities. But watch occupancy, carry costs, and the timing of delivery of new supply. Overpaying today may not yield sharp capital gains if price growth moderates.
Conclusion
Dubai real estate in 2025 remains vibrant and full of opportunity. The next 12-18 months will likely bring more supply, which should start easing some pressure on price and rental growth. For Gursaya clients, the strategy should be to act decisively but with awareness: pick well, focus on quality, and anticipate shifts.
