The Dubai property market is growing quickly, with more and more people moving there and people wanting to buy property.
According to the latest report by ValuStrat, the population of the emirate reached 3.92 million by March 2025. Almost 90,000 new residents arrived in the first three months alone — that's a lot of people! This is making people interested in buying houses and apartments.
Because people wanted more homes, 61,580 new houses are planned for completion in 2025. 19% of these were finished in the first three months of this year. The ValuStrat Price Index (VPI) shows that the residential property market is growing quickly. Apartment prices went up by 21.4%, while villas went up by as much as 30.3%. Rental prices also went up, with villa rents rising by 5.1% and apartment rents by 10%.
Even though there is a lot going on, it is becoming harder to find cheap housing. The difference between the number of houses for sale and the number of houses people want to buy is still too big, which could mean that the market will change. In the first three months of 2025, there was a change in the types of transactions. There were more transactions involving completed properties. This was because there were fewer mortgage applications than in other periods.
The commercial real estate sector is also doing well. The value of offices went up by 29.1% compared to last year, and rental prices increased by 20.2%.
The demand for office space is explained by the fact that the economy is growing steadily and businesses are developing actively. The average cost of office space in central Dubai is now AED 20,591 per square metre, which is one of the highest figures in the region.
The retail sector is also doing well. Emaar Properties says that shopping centres made 4.6 billion dirhams in sales in 2024 alone. The Dubai Mall is the most popular shopping centre in the world. It attracts 111 million visitors every year. New shopping centres like the Nad Al Sheba Mall are making the market bigger.
By February 2025, Dubai had 128,417 hotel rooms and 26,021 hotel apartments. The average cost of an overnight stay went up to 702 dirhams, because the service is good and there are a lot of tourists.
Industrial real estate is also doing well: the capital value index for this sector reached 152.2, which means an annual return of 12.7%. Logistics and warehouse infrastructure are developing quickly, thanks to more trade in the region and an increase in economic activity.и в 12,7%. Особенно активно развивается логистика и складская инфраструктура — благодаря растущей региональной торговле и усиливающейся экономической активности.