Dubai real estate prices are up 20% What’s Next for 2025?

As one of the world’s leading investment hubs, Dubai continues to attract global investors, high-net-worth individuals, and expatriates seeking both lucrative opportunities and an unparalleled lifestyle. 

The 2025 report highlights Dubai’s continued growth across the residential, commercial, retail, and hospitality sectors. Despite global economic fluctuations, the Emirate’s property market has maintained exceptional stability and a steadily expanding population.

Residential Market

Dubai’s residential sector has sustained its upward momentum, recording a 20% increase in sales prices and a 19% rise in rental rates throughout 2024. The average property price reached AED 1,597 ($435) per sq. ft, driven by record-breaking transaction volumes. Demand for villas has remained particularly strong, surpassing apartments in price growth.

Investor confidence remains strong, with gross rental yields reaching 6.7%, underscoring sustained demand for both apartments and villas. Notable, Dubailand, Meydan and International City recorded the highest rental increases, with annual growth ranging from 39% to 46%. 

Commercial Real Estate

Dubai’s office sector demonstrated remarkable resilience in 2024, with Grade A office rents increasing by 17% year-on-year. Strong demand for premium office space, particularly in prime locations such as DIFC’s ICD Brookfield Tower, has driven occupancy rates beyond 95%. 

The retail sector continues to play a vital role in driving economic activity, supported by Dubai’s expanding population and rising tourist numbers. Retail sales are projected to increase by 6% between 2025 and 2027, driven by the objectives of Dubai’s Urban Master Plan 2040, which focuses on developing community-based retail hubs to enhance accessibility and convenience.

Tourism and Hospitality

Dubai’s hospitality sector reached new heights in 2024, recording an average hotel occupancy rate of 78% and welcoming 18.7 million overnight visitors a 9% increase from the previous year. Revenue Per Available Room increased by 1%, highlighting the sustained appeal of Dubai as a premier luxury and business travel destination.

With continuous investments in hospitality infrastructure, the introduction of new global hotel brands, and the city’s innovative tourism initiatives, Dubai remains a dominant player in the global travel industry.

Industrial and Logistics

Dubai’s industrial and logistics real estate market continues to expand, driven by the Emirate’s strategic position as a global trade and commerce hub. The sector has experienced significant growth in manufacturing, logistics, and e-commerce demand, particularly in key areas such as JAFZA, Dubai South, and DIP. Warehouse rental rates in JAFZA increased by 28% year-on-year, highlighting the sustained demand for industrial space.

Dubai’s robust trade performance further reinforces its position as a logistics powerhouse, with import and export trade volumes increasing by 8.4% and 6.6%, respectively, in 2024. As supply chain diversification and technological advancements continue, Dubai’s industrial sector is well-positioned for further expansion.

Secure Your Investment with One Investments

Dubai’s real estate market continues to strengthen its position as one of the world’s most dynamic and investment-friendly destinations, driven by a legacy of resilience and innovation. At One Investments, we play a leading role in this transformation, providing investors with secure, investments opportunities. 

With a promising economic outlook, now is the time to capitalize on Dubai’s expanding real estate market and secure a strategic investment for the future.