Dubai, UAE – Dubai’s real estate market is set to maintain its upward trajectory in 2025, driven by sustained investor confidence, an expanding luxury segment, and unprecedented commercial demand, according to Engel & Völkers Middle East’s latest report.
With strong economic fundamentals, population growth, and strategic government initiatives, Dubai continues to reinforce its position as one of the world’s most attractive real estate investment destinations.
In 2024, total residential real estate transactions surged by 40.3% to 170,992 units, more than five times the number recorded in 2020, reflecting the city’s growing appeal to both local and international buyers. The luxury sector remained a key driver of this growth, with sales of properties exceeding AED 10 million rising by 20.5% year-on-year, and Q4 narrowly surpassing the record-breaking performance of the same quarter in 2023. Off-plan transactions dominated the market, accounting for 63% of total sales, up from 54% in 2023, as investors sought high-potential opportunities amid a tightening secondary market.
The apartment sector played a critical role in this expansion, with transactions increasing by 47.6%, contributing to 89.6% of the overall real estate market’s growth. Popular investment hubs such as Jumeirah Village Circle, Business Bay, and Dubai Hills Estate led off-plan sales, while prime locations like Dubai Marina, Downtown Dubai, and Jumeirah Lakes Towers remained strongholds for ready-to-move properties. The consistent demand for high-quality developments continues to support price appreciation and solid rental yields, making Dubai an increasingly attractive destination for global investors.
The commercial real estate sector delivered another strong performance in 2024, reflecting Dubai’s growing prominence as a global business hub. With over 24,000 new businesses registered in the first half of 2024, demand for premium office spaces surged, pushing occupancy rates in DIFC, Downtown Dubai, and Business Bay to an exceptional 95-97%.
This demand-supply imbalance led to double-digit rental growth, with office rents rising by 11%, retail rents by 9.7%, and warehouse prices surging by 21.1%, highlighting the continued strength of Dubai’s commercial property market. Developers are responding to this demand, with Aldar Properties unveiling plans for a Grade A office tower on Sheikh Zayed Road, and further commercial launches expected in 2025.
Daniel Hadi, CEO of Engel & Völkers Middle East commented: “The combination of capital appreciation, high-rental yields and increasing foreign investment continues to solidify Dubai’s position as a top-tier global property market. As one of the world’s fastest growing real estate markets, we will continue to witness the emirate’s ability to attract global capital, high net-worth individuals and multinational corporations. The growth we witnessed in 2024 provided a solid foundation to anticipate another record-breaking year in 2025”
Investor sentiment for 2025 remains highly optimistic, supported by new mega-developments such as Palm Jebel Ali and The Oasis, which cater to ultra-luxury buyers seeking exclusivity and long-term value. Additionally, Dubai’s government-led initiatives, including visa reforms, free zone incentives, and a streamlined regulatory framework, continue to enhance the city’s appeal to businesses and investors. The commercial sector is expected to see further expansion, particularly in high-demand districts such as DIFC, Business Bay, Jumeirah Lakes Towers, and Al Quoz, as companies seek Grade A office spaces and state-of-the-art industrial facilities.
With Dubai entering 2025 with strong economic momentum, its real estate market remains a magnet for global investors seeking stability, high returns, and long-term growth potential. The combination of record-breaking sales, a thriving luxury segment, an expanding commercial sector, and a supportive regulatory environment positions Dubai for yet another year of exceptional performance. With continued infrastructure investments, mega-project launches, and sustained foreign interest, the emirate’s real estate sector is well on track to surpass expectations, reinforcing its status as one of the most lucrative and resilient property markets worldwide.
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Press contact:
Diana Džaka Bičo
Marketing Director
Office 21 Mezzanine Level, Golden Mile 2,
Palm Jumeirah, Dubai UAE
Dubai, United Arab Emirates
diana.dzaka@engelvoelkers.com
Flor Pamintuan
PR Account Director
Ishraq Communications LLC
flor@ishraqcomms.com
About Engel & Völkers:
Engel & Völkers is one of the world’s leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. For over 45 years now, the wishes and needs of private and institutional clients have had top priority, giving rise to the ongoing development of a range of services relating to all aspects of real estate. Sales and leaseholds, as well as consultancy for various investment opportunities in the real estate segment are among the core competencies of more than 16,500 people operating under the Engel & Völkers brand. The company is currently operating in over 35 countries on five continents. Intensive training schemes in its in-house real estate Academy and the high level of quality assurance governing its systematically structured service provision are key factors that account for the company’s success. Engel & Völkers develops digital tools and IT products on an ongoing basis in order to keep its service as efficient as possible. In doing so, the company is setting new standards in digital solutions for property brokerage. www.engelvoelkers.com
About Engel & Völkers Middle East:
Established in 2014, Engel & Völkers Middle East has its offices in Dubai, United Arab Emirates. The team consists of over 200 trusted agents, each focusing on premium residential and commercial properties, serving as experts in their respective areas. The company recently established a separate entity for commercial real estate (Engel & Völkers Commercial Middle East). Engel & Völkers Commercial serves as an entry point to exceptional commercial real estate opportunities in Dubai, from attractive office spaces to industrial complexes. The Private Office provides services for affluent clients and has access to premium real estate globally. Whether you’re in the market to rent, buy, or sell a property, Engel & Völkers Middle East is a perfect choice to achieve your real estate goals. www.engelvoelkers.com/ae/en