ValuStrat, a real estate research firm, expects Dubai’s residential and commercial real estate market to maintain its upward trajectory in 2025, albeit at a slower pace, supported by economic growth, increasing demand, positive sentiment, and increasing market maturity.
In a recent report titled “Dubai 24/25,” the company expected capital values to increase by 5-10% during the year.
The report expected that larger villas, especially in prime locations, will witness moderate growth in sale prices, with prices likely to stabilize in the second half of the year. Rental growth is expected to accelerate in the low and mid-market sectors, with renewed confidence in the apartment market compared to the villa sector
The report also expected that an increasing number of renters would shift towards home ownership, driven by record high rents and lower housing loan costs.
The institution said that the office market in Dubai is witnessing unprecedented demand, due to the expansion of companies and the establishment of new businesses, and rents are expected to grow sustainably and capital values rise, especially for first-class office spaces.
Dubai’s reputation as a business-friendly destination and the influx of global talent are key drivers of this demand, and prime office locations are expected to see increased activity, further strengthening Dubai’s position as a leading business hub.
Dubai is preparing to receive 3 shopping malls in the coming period, which are Sobha Harland Mall, Nad Al Sheba Gardens Mall, and Jumeirah City Mall. The share of upcoming revenues from online transactions is expected to increase locally and globally, with e-commerce sales in Dubai expected to reach $17.2 billion by 2027.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q4 2024
