The Dubai real estate forecast for 2025 is looking increasingly positive, with a surge in interest from wealthy investors drawn to the city’s appealing lifestyle, low-tax environment, and attractive Golden Visa program. As the emirate continues to grow, the stability and opportunities within the real estate sector position it as a prime destination for high-net-worth individuals seeking to establish a foothold in a thriving market.
Dubai’s residential market commenced 2025 with remarkable vigor, propelled by a rising population and increased investor interest. Sustained demand has created a robust atmosphere for growth, showcasing the emirate’s unique appeal.
According to the Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter witnessed a substantial 23 percent year-on-year increase in transaction volumes. This uptick highlights Dubai’s capability to find a harmonious balance between investment potential and quality of life.
Rachael Kennerley, Director of Research at Savills, noted, “In Q1 2025, off-plan sales remained the bedrock of transaction activity, accounting for a remarkable 69 percent of all deals. The residential market saw vigorous supply, with over 30,000 units launched during the quarter, predominantly apartments.”
Dubai Real Estate Growth
“This figure exceeds double the volume of transactions recorded in the same period last year, as developers responded to the robust market demand,” Kennerley added.
Transactions involving completed and handed-over projects comprised the remaining 31 percent of the total transactions. Notably, apartment sales dominated this segment, making up 81 percent of the transactions, illustrating their significant presence in Dubai’s housing landscape.
When considering the market as a whole, apartments constituted 76 percent of all transactional activity. Conversely, the villa and townhouse sectors demonstrated a remarkable rebound, with transactions climbing from 18 percent in the previous quarter to 24 percent in Q1 2025.
Key micro-markets along the Al Khail corridor, such as Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, accounted for 55 percent of total transaction volumes and 56 percent of all newly launched residential units. As land saturation and affordability challenges persist in prime residential areas, developers are steering their efforts toward peripheral regions.
Dubai’s upscale residential market continues to thrive, largely due to the emirate’s enduring attraction for high-net-worth individuals. Factors driving this demand include the exceptional quality of life, favorable tax conditions, straightforward business establishment processes, and the robust framework of the Golden Visa program.
In Q1 2025, over 1,300 units were transacted at prices exceeding AED 10 million ($2.72 million), marking a 31 percent year-on-year growth. Interestingly, in contrast to the broader market dynamics, villas led prime transactions, capturing 73 percent of the market and exhibiting a 52 percent increase year-on-year, along with a quarterly rise of 4 percent.
Andrew Cummings, Head of Residential Agency, stated, “Demand across the prime residential segment in Dubai has not just been sustained but has intensified. Amid tariff wars, geopolitical uncertainties, and fluctuating tax environments, the world’s wealthy increasingly recognize Dubai’s allure, prompting developers to step up their game.”
Cummings further emphasized, “Villas in sought-after locations, characterized by space and privacy, have become the preferred choice for investors, though current supply remains limited.”
Looking forward, the sentiment surrounding the Dubai real estate forecast for 2025 remains optimistic. Savills expects that despite global economic and political volatilities, the emirate’s stability, competitive regulations, and favorable business environment are likely to continue attracting both population and investment growth.
However, the significant development pipeline necessitates a careful equilibrium between supply and demand to ensure the market’s ongoing vibrancy.