The Dubai real estate market is experiencing strong and steady growth, driven by population increase, high demand for housing, and activity in the commercial sector. According to the latest report by consulting firm ValuStrat, 61,580 new residential units are expected to be delivered in the emirate in 2025. As of the first quarter, 19% of the planned supply has already been completed.
As of March 2025, Dubai’s population reached 3.92 million. Nearly 90,000 new residents moved to the emirate in the first quarter alone, significantly boosting housing demand.
Residential Property
The ValuStrat Price Index 2025 (VPI) recorded a notable increase in residential property values. Over the past year, average apartment prices rose by 21.4%, while villa prices surged by 30.3%. Rental prices also increased: apartment rents rose by 10%, and villa rents by 5.1%.
However, this price surge is accompanied by a shortage of affordable housing. The decline in mortgage applications recorded in Q1 2025 may signal a potential slowdown in market activity. Still, the number of sales transactions remains high.
Commercial Real Estate
According to ValuStrat, the annual increase in office capital values was 29.1%, with rental rates growing by 20.2%. This trend is supported by favorable economic conditions and expanding business activity in the emirate.
The average annual rental rate for office space in central Dubai reached AED 20,591 per square meter, making it one of the most expensive markets in the region.
Retail and Hospitality Sectors
Retail and hospitality also continue to show positive momentum. Emaar Properties reported AED 4.6 billion in retail sales in 2024. Dubai Mall remains the most visited shopping destination in the world, attracting 111 million visitors.
New projects like Nad Al Sheba Mall are adding more retail space to the market. As of February 2025, Dubai had 128,417 hotel rooms and 26,021 hotel apartments. The average daily rate for hotel rooms rose to AED 702.
Industrial Real Estate
The capital value index in this segment reached 152.2 points, with annual growth of 12.7%. The demand for logistics and warehouse space continues to rise, driven by increasing regional economic activity.
2024 Market Overview
According to the Dubai Land Department and Digital Dubai Authority, residential property prices rose by 11.62% in 2024, while commercial prices grew by 13.19%. Villas showed the sharpest increase—21% year-on-year. In Q4 2024, prices rose by 1.99% compared to the previous quarter.
This growth is attributed to a stable economic climate, strong interest from local and international investors, and legal reforms aimed at increasing market transparency.
Dubai Land Department Director General Marwan Ahmed bin Ghalita stated that the emirate’s real estate market is undergoing strategic transformation. Authorities aim to build an integrated and sustainable ecosystem to position Dubai as a global destination for investment and quality living.
Both the government and key market players are focused on sustainable growth, infrastructure development, and capital attraction, cementing Dubai’s status as one of the world’s top real estate investment destinations.
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