Dubai real estate analysts have provided a new forecast for the sector’s growth for the remainder of the year, as both property prices and sales volumes continue to rise sharply. According to experts, the UAE real estate market is set for sustained growth, driven by robust demand across multiple sectors, a significant influx of new property developments, and the integration of advanced technologies that are reshaping the industry.
Their latest market analysis presents an optimistic outlook for Dubai’s real estate sector in the 2024-2025 business period. The forecast highlights strong sales figures, rising property values, and the rapid absorption of new inventory, all of which are expected to contribute to continued expansion. This growth is anticipated to be supported by both local and international investors, reflecting the market's resilience and its strategic importance in the region. For those looking to
buy properties in Dubai, these factors indicate a promising time to invest.
Dubai’s real estate market is on track for another exceptional year in 2024, with record sales volumes and values. In July 2024, property sales reached an impressive AED49.6bn ($13.5bn), marking a 31.63% increase compared to the same period in 2023. This surge in sales has been largely driven by high demand for luxury properties, particularly in sought-after locations like Palm Jumeirah.
The first half of 2024 alone saw over 43,000 property transactions, valued at approximately AED122.9bn ($33.5bn), which represents a 30% increase from the previous year. This growth is partly attributed to the rapid absorption of new inventory, with 80% of units launched since 2022 already sold. The next few years will also see a significant increase in property supply, with around 41,000 units expected in 2025 and 42,000 in 2026—an 80% rise compared to 2024’s projected supply of 27,000 units.
While this influx of new properties offers numerous opportunities for both buyers and investors, it also carries the risk of potential oversupply, which may lead to price stabilization or slight declines in certain market segments. However, the resilience of the market, supported by strong investor confidence and strategic urban planning, is expected to absorb much of this new supply without significant disruption.
For investors, the 2024-2025 period will be critical for timing their investments to maximize returns. The luxury property segment remains particularly strong, with prime areas such as Palm Jumeirah and Downtown Dubai continuing to attract high-net-worth individuals. Additionally, there is growing interest in mid-tier and affordable property segments, especially in areas like Dubai Silicon Oasis and Jumeirah Village Circle, where rental yields are seen as highly attractive.
Technological advancements are also playing a major role in shaping Dubai’s real estate market. The use of artificial intelligence (AI) and digital platforms is revolutionizing how properties are marketed and sold. Tools such as virtual tours, 3D floor plans, and AI-driven market analyses are becoming increasingly common, enhancing transparency and making the property-buying process more efficient and accessible. The rise of proptech solutions is expected to continue well into 2024 and beyond, with these technologies driving the engagement of both developers and investors.
This transformation is not just a local trend but part of a broader global shift towards tech-enhanced real estate practices. Despite the overwhelmingly positive outlook, the market does face challenges, such as the potential for oversupply, which could put downward pressure on rental prices in some areas.
As prime development land becomes scarcer, there is a shift toward more sustainable growth strategies expected beyond 2026. This strategic pivot is likely to stabilize the market and ensure its continued strength in the coming years.
Source: Arabian Business
