Evgeniy Kochman was interviewed for this article
As we look ahead to 2025, Dubai’s real estate market stands poised at the intersection of resilience and transformation. With a proven track record of bouncing back from global downturns, Dubai’s property sector continues to captivate investors, residents, and developers alike, placing the city ahead of other major markets like Miami, New York, and London. The foundation of Dubai’s real estate success has always rested on its strategic location, world-class infrastructure, and dynamic economic growth. In 2025, Dubai’s real estate market is projected to grow continuously amid economic and social development.
According to Kochman, real estate expert – rental market surge, rising luxury real estate, developments in technology and sustainability, economic growth and investor confidence, and lucrative investment opportunities are among the five most significant trends to be expected in 2025.
A boom in residential demand
In 2025, Dubai’s residential market will continue to be buoyed by both domestic and international demand. The city’s relatively low taxes, high-quality lifestyle, and access to world-class amenities make it an attractive destination for expatriates, retirees, and high-net-worth individuals. Moreover, the government’s continued push to attract foreign investment—such as the introduction of long-term residency options for expatriates and the extension of golden visas—will further enhance the city’s appeal.
The demand for luxury properties, in particular, is expected to remain strong. Prime locations such as Palm Jumeirah, Downtown Dubai, and the Dubai Marina will continue to attract wealthy investors from around the world. Mid-range and affordable housing options will also see growth, driven by the influx of younger professionals seeking modern, yet affordable living spaces.
Dubai’s government has been making concerted efforts to balance supply with demand in the residential market. Projects like Mohammed bin Rashid City and Dubai Creek Harbour, as well as new mixed-use developments, are designed to meet this growing demand while ensuring that the city remains liveable and sustainable.
Increase in rental prices
Rental prices in Dubai will rise significantly next year, with forecasts predicting an average increase of 18 percent in short-term rentals and over 13 percent in long-term leases. This surge is attributed to the continuous influx of international professionals and escalating property prices.
In particular, short-term rentals in Dubai are also reshaping the rental market, with a 30 percent increase in demand compared to this time last year. Kochman suggests that the trend is revolutionizing the region’s real estate scene, offering strong returns for savvy property owners, and attractive accommodation options to visitors.
Luxury real estate surge
Dubai has traditionally offered lucrative investment opportunities for individual and institutional investors from all over the world.
Last year, Dubai’s luxury home market hit record highs, with sales of $10 million-plus homes nearly doubling to $7.6 billion, surpassing London and New York, according to Knight Frank. Dubai’s super-prime market, comprising properties valued at $25-million-plus, also experienced a surge, with 56 deals totaling $2.3 billion, double 2022’s total.[1]
2025 is no exception, with an expected rise of lucrative investment in Dubai by 8 percent.
Technology and sustainability
Sustainability and sustainable technology will remain a top priority in Dubai, with eco-friendly building designs, solar energy integration and green communities driving the development of residential and commercial projects. As global investors become more eco-conscious, the demand for green properties in Dubai will continue its upward trajectory. According to projections, sustainable properties could account for up to 35 percent of total property transactions in Dubai by 2025, a significant increase from 15 percent in 2020.
Challenges to watch: oversupply and regulatory changes
While the prospects for Dubai’s real estate market in 2025 are generally positive, there are some challenges that investors should keep in mind. The city has historically been prone to periodic oversupply, especially in certain segments like luxury residential units and commercial spaces. As more developments are completed, particularly in the aftermath of Expo 2020, there may be temporary price corrections in certain areas.
Kochman suggests that investors should focus on markets with strong, sustained demand rather than speculative or oversaturated regions.
Investing in Dubai real estate in 2025 offers numerous opportunities, particularly in residential, commercial, and green development sectors. While challenges such as market oversupply and regulatory changes exist, Dubai’s economic diversification, population growth, and commitment to sustainability position the market for long-term growth. Investors willing to navigate these complexities will find Dubai’s real estate market a promising place to build wealth.