Dubai’s real estate market is running at full speed, and the numbers tell the story. In the last quarter of 2024, residential transactions jumped 55% compared to the previous year, reaching 33,110 deals. The momentum is strong, and with property prices expected to rise 5–8% annually and rental yields averaging 7%, 2025 is shaping up to be another big year for investors and homebuyers.
Who’s Driving the Market?
Six developers are leading the charge, with Sobha Realty taking the top spot. Their flagship project, Sobha Orbis, has been a major contributor to the company’s 1,960 registered transactions. Behind them:
- Azizi Developments – 1,158 transactions, led by Azizi Venice
- Damac Properties – 1,050 transactions, fuelled by Damac ELO
- Binghatti Developers – 700 transactions, with Binghatti Hills at the forefront
- Emaar Properties – Maintaining a strong position in both value and volume
- Nakheel – A key player shaping Dubai’s master-planned communities
This level of activity is a sign of confidence—both from developers launching large-scale projects and from buyers continuing to invest in Dubai’s real estate market.
The Shifting Demand for Property
One of the most noticeable trends is the rise of compact living. Properties under 1,000 sq. ft. now dominate 75% of transactions, up from 61% a year ago. It’s clear that buyers are prioritising efficiency, affordability, and high rental yields. Homes priced under AED 2 million now account for 74% of the market, reflecting strong demand in the mid-tier segment.
At the same time, investors are looking at higher-value properties for rental income. Rising home prices have pushed rents up, making it more attractive for buyers to purchase and lease out their properties. Short-term and long-term rental demand remains strong, particularly in high-traffic areas like Business Bay, Dubai Marina, and JVC.
Where Investors Are Buying
Certain areas continue to pull in the most investment, both in volume and value:
- Dubailand – The leader in transactions, accounting for 28% of the market
- Jumeirah – 22% of total deals, fuelled by demand for beachfront and luxury living
- MBR City – 9% of the market, with large-scale developments continuing to attract buyers
On the value side, Palm Jumeirah and Jumeirah together accounted for 27% of total home sales, proving that demand for luxury and waterfront properties remains strong.
What’s Next for Dubai Real Estate?
With 76,000 new homes set for completion in 2025, supply is expanding, but that’s not slowing down demand. Dubai’s government has been proactive in supporting real estate growth, with long-term initiatives like the Dubai Real Estate Sector Strategy 2033, which aims to:
- Double the sector’s contribution to GDP
- Increase homeownership accessibility
- Push total market value beyond AED 1 trillion
For investors, the takeaway is clear: Dubai remains one of the most attractive real estate markets globally, offering strong yields, capital appreciation, and a business-friendly environment.
At MILK Real Estate, we help investors navigate this fast-moving market with expert insights and access to Dubai’s most sought-after properties. If you’re looking to capitalise on 2025’s opportunities, Contact us to learn more
