The Dubai real estate market has experienced remarkable growth due to population growth and continued demand, as highlighted by the new industry report.
According to ValuStrat, the population reached 3.92 million by March 2025, with 89,695 new residents added in the first quarter. Demand for living space is rising, leading to an estimated 61,580 new homes expected this year, with 19% already completed in the first quarter.
Residential market
The Valustrat Price Index (VPI) reports a significant annual increase in residential capital value. Apartments prices rose 21.4%, while villa prices rose 30.3%. Rental prices have also risen, with villa rentals rising 5.1% and housing rents rising 10%. Despite demand, it is becoming increasingly difficult to secure affordable living spaces. The guilt of the whole of the total sin of the Dubai living sector reflects the non-attack between supply and demand, leading to potential market corrections. In the first quarter of 2025, sales transactions returned to residential buildings. This was due to fewer mortgage applications than previous quarters.
Office market
The office sector remains robust, with annual capital value increasing by 29.1% and research rents increasing by 20.2%. Demand for office space is supported by continuous economic growth and business expansion. The average office rating is AED per 20,591 square meters, which is the highest priced in Dubai city centre.
Retail and hospitality
The retail sector continues to work well, with Emaar Properties reporting on AED 4.6 billion in sales from shopping centres in 2024. Dubai Mall remains the most visited destination in the world, attracting 111 million visitors. New retail developments such as Nad Al Sheba Mall add a large amount of space to the market. In February 2025, Dubai had 128,417 hotel rooms and 26,021 hotel apartments in February 2025. The average daily rate for hotels rose to AED702.
Industrial market
The industrial sector has also shown positive growth, with the VPI of industrial capital value reaching 152.2 points and annual profits reaching 12.7%. Logistics and storage demand continues to increase. This is due to regional economic activity.