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Dubai's real estate market is experiencing a surge in sales, with H1 2025 marking a record-breaking period with sales reaching $89 billion, according to Arabian Business. This growth is fueled by a strong performance in the luxury sector and a first-time homebuyer program offering incentives and preferential pricing. However, some reports suggest a potential price correction and a cooling down of the market in the latter half of the year, with some analysts predicting a possible price drop.

Key Trends and Developments:

· Record Sales:

Dubai's real estate market has seen a 40% increase in sales during H1 2025, reaching a new high of $89 billion, according to Arabian Business.

· Luxury Market Boom:

The luxury segment is experiencing a surge in sales, with some reports indicating near 100% sales growth.

· First-Time Homebuyer Program:

Dubai launched a program to support first-time homebuyers, offering incentives and tailored mortgages on properties up to $1.36 million.

· Potential Market Correction:

Some industry reports suggest a potential price correction in the latter half of the year as the market reaches a peak, with prices possibly declining by up to 15%.

· Palm Jebel Ali Development:

Dubai Holding has signed a deal with Select Group to develop the Palm Jebel Ali, marking the first strategic land sale with a third-party developer at the location.

·Branded Residences:

Dubai leads the world in branded residences, with 160% growth and a significant number of projects set for delivery by 2031.

· Rental Market Dynamics:

Apartment rents are expected to continue increasing, potentially at a higher rate than villa rents.

· Investment Opportunities:

Dubai's real estate market continues to attract international investors due to its tax-free environment and high ROI potential.

· New Realty Hub:

A new real estate hub is expected to attract $300 million in investment and accelerate innovation in the sector.

Dubai Property Owners: Time to Take Service Charges Seriously

Big update for property owners in Dubai — paying your service charges on time is about to become even more important.

Soon, unpaid service charges will be included in your UAE credit score. That’s right — missing these payments could impact your ability to get a loan, credit card, or even a business facility. And it’s not just for owners in Dubai — this will apply across the UAE.

According to the Etihad Credit Bureau, service charges will be treated just like missed payments on loans, rent, or credit cards. They’ll show up in your credit report and could bring your score down.

This move is coming after years of issues in Dubai where many homeowners delayed or avoided paying service fees — especially after COVID when rental income dropped and cash flow was tight. Even though the Dubai Land Department made efforts — like offering flexible 6-month payment plans — some owners still fall behind.

Currently, you can’t rent your unit (Ejari won’t be issued) or sell it without clearing all service dues. In extreme cases, the property can even be auctioned. Yet, some owners still take the risk.

Now, adding these payments to your credit report is expected to push more people to stay on track. And with service charges increasing in 2025 (partly due to April’s heavy rains and damage repairs), it’s more important than ever to stay up to date.

REAL ESTATE TRANSACTIONS - FEBRUARY 2025 Dubai logs over a total of 15,829 real estate transactions worth AED 50.32Billion were conducted during the week ending 28th February 2025, according to figures released by the Dubai Land Department (DLD). Dubai’s real estate market saw strong growth in 2024, with a 19% rise in rental rates, a 20% increase in sales prices, and record-high transaction volumes driven by economic expansion and population growth. The hospitality sector thrived with 18.7 million overnight visitors and a 78% hotel occupancy rate, while the office market saw a 17% annual rent increase due to strong corporate demand. Looking ahead to 2025, Dubai's real estate sector is expected to continue its upward trajectory, supported by infrastructure investments, foreign direct investment, and sustainable urban development. HIGHLIGHTS - FEBRUARY 2025 ✓ Total Property Sale Transactions – 15,829 ✓ Total Sales Value – AED 50.32B ✓ Off-plan Units - 8,936 ✓ Ready Units – 6,893 Sources: DLD, propertynews.ae Discover Royal Estates bespoke services to buy or rent your dream home in Dubai. For inquiries, Contact us

Company: Royal Estate LLC

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Address: Clover Bay Tower, Business Bay, Dubai

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Checkout new Dubai properties at Royal Estates , Royal Estates LLC, Top Real Estate agency in Dubai

Dubai’s Property Market Booms: Developers Reap Big Profits from Global Buyers

Royal Estates Report - Top Real Estate Agency in Dubai

Dubai’s real estate market is currently experiencing an unprecedented surge, with developers enjoying record profits thanks to a growing influx of expats and international buyers. From high-end residential properties to luxury waterfront villas, the demand for prime real estate in Dubai is skyrocketing, and developers like Emaar Development PJSC and Binghatti Holding Ltd. are reaping the benefits.

A Record-Breaking Year for Developers

The property market in Dubai has seen massive growth, with Emaar and Binghatti more than doubling their earnings as they capitalize on the increasing demand for luxury homes. Known for its iconic Burj Khalifa, Emaar Development’s profits soared to $2 billion in 2024, a remarkable increase from the previous year. Similarly, Binghatti Holding Ltd. has reported significant earnings growth, reflecting the broader trend of prosperity in Dubai’s real estate sector.

Dubai and Abu Dhabi among world’s five most improved real estate markets

In a global ranking, the real estate markets of Dubai and Abu Dhabi have made the biggest strides in transparency, landing in 3rd and 4th place for improvements. That is according research from JLL.

The improvements in these UAE real estate markets is largely linked to increased government focus on data transparency and major digitalization efforts. Those include technology-focused initiatives designed to create more confidence in the real estate sector and boosting investment.

Dubai climbed one spot to reach the 28th position on the index and is the only city in the MENA region with a real estate market graded as ‘Transparent’ by the ‘Global Real Estate Transparency Index’ from JLL. Some technology-focused initiatives like the Real Estate Innovation Incubator and Dubai

Clear, open practices attract global investments, enhance market trust, and support sustainable development, aligning with Dubai's vision as a leading global destination for real estate. Following Dubai's Economic Agenda D33, we are advancing digital transformation and setting high standards to keep Dubai at the forefront of global real estate markets.”

Abu Dhabi advanced four spots to land in 41st place on the index and was listed as ‘Semi-transparent’ by the report. The Emirate has leveraged AI technology to expand its digital services and introduced a convenient real estate platform that integrates property services.

While Saudi Arabia ranks lower, the researchers did note the nation is working on improving transparency and focusing on greater institutionalization, offering strong long-term potential.

The role of transparency

As the real estate market in MENA evolves and urban growth continues, transparency is more crucial than ever for helping stakeholders make informed decisions. The most transparent markets will be the most successful, said JLL in its report, with buyers and sellers more likely to find each other, driving up transactions and overall market satisfaction.

The index overall highlights the major advantages that AI-powered tools can bring to real estate markets in terms of productivity and transparency. Despite that, there is also some inherent risk to AI tools, with concerns that pricing algorithms could inadvertently lead to anti-competitive behavior.

JLL has been releasing this biannual index in collaboration with LaSalle Investment Management since 1999. It is based on a comprehensive survey of performance benchmarks, market data, governance structures, regulatory and legal environments, and sustainability instruments in 90 countries and territories globally.

The UAE has one of the hottest real estate markets in the world currently, with cities like Dubai having gained a reputation for catering to luxury. Dubai has become a top destination for high-net-worth individuals that are looking to invest in real estate.

Off-plan sales dominate Dubai’s real estate market as strong investor demand continues into 2025

Demand for New Developments Pushes Off-Plan Transactions to 63% of Total Sales, Outpacing Secondary Market Supply

Dubai, UAE - Dubai’s real estate market remains a global hotspot for investors, with off-plan transactions accounting for 63% of all property sales in 2024, up from 54% in 2023, according to latest report. The shift toward off-plan properties highlights the increasing demand for new developments, driven by competitive pricing, attractive payment plans, and limited supply in the secondary market.

Total residential sales transactions surged by 40.3% to 170,992 units in 2024, more than five times the number recorded in 2020, underscoring sustained investor confidence in Dubai’s property market. Apartment sales led the way, growing by 47.6% year-on-year and accounting for nearly 90% of the total market expansion, reflecting their affordability, strong rental yields, and appeal to both end-users and investors.

Palm Jumeirah, Downtown Dubai, and Dubai Marina continued to attract luxury buyers, while emerging developments like Palm Jebel Ali and The Oasis are driving new interest in off-plan projects, catering to high-net-worth individuals seeking exclusivity and long-term capital appreciation. In the ultra-luxury segment, sales of properties priced over AED 10 million rose by 20.5%, reaffirming Dubai’s position as a global destination for prime real estate.

"The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors looking for properties that offer long-term value and flexible financing options," said Daniel Hadi, CEO of Engel & Völkers Middle East. "Developers are responding with innovative projects, while government-led initiatives, such as long-term visas and free zone expansions, further strengthen Dubai’s attractiveness as a real estate investment hub."

Dubai’s commercial property market also saw remarkable growth, supported by strong economic fundamentals and an increasing number of businesses establishing a presence in the city. With over 24,000 new business registrations in the first half of 2024, occupancy rates in DIFC, Downtown Dubai, and Business Bay climbed to 95-97%, leading to double-digit rental growth across the sector.

Office rents rose 11% year-on-year, while retail rents increased by 9.7% and warehouse prices surged by 21.1%, reflecting the increasing demand for high-quality commercial spaces. The tight supply of Grade A offices has prompted new development activity, including Aldar Properties’ upcoming project on Sheikh Zayed Road and further commercial launches this year.

As Dubai enters 2025, the city’s real estate market remains a key driver of economic expansion. Investor confidence continues to be fueled by rising property values, a thriving luxury sector, and the sustained momentum of off-plan transactions. With developers launching new projects to meet demand and regulatory frameworks supporting long-term investment, Dubai’s position as a premier global real estate destination remains stronger than ever.

Dubai’s real estate market is on the cusp of an exciting transformation in 2025, marked by sustained growth, innovation, and strategic government initiatives. As the city continues to redefine luxury living and global investment opportunities, key trends such as the rise in off-plan developments and a stronger commitment to sustainability are shaping the future. With investors, developers, and residents actively navigating these evolving dynamics, Dubai remains one of the most compelling real estate markets in the world.

Market Growth and Price Stabilization

The Dubai real estate market is projected to reach its peak in 2025, with prices stabilizing in certain segments, particularly high-end villas. According to Khaleej Times, residential property prices are anticipated to rise moderately, with a projected increase of 5-10%. This stabilization reflects a maturing market that is balancing supply and demand effectively.

While high-end villas are expected to stabilize, mid-range apartments and commercial real estate are also showing promising trends. The demand for mid-range apartments continues to grow, driven by young professionals and families seeking affordable living options. Commercial real estate, particularly in business hubs like Business Bay and DIFC, is benefiting from Dubai's status as a global business center. The city's strategic location and robust infrastructure make it an attractive destination for multinational corporations and startups alike.

Potential Risks and Challenges

Despite the positive outlook, investors should be aware of potential risks such as rising interest rates and global economic concerns. These factors could impact borrowing costs and overall market sentiment. Additionally, geopolitical tensions and fluctuations in oil prices may pose challenges to the market's stability. Investors are advised to conduct thorough due diligence and consider diversifying their portfolios to mitigate these risks.

Rental Market Surge

The rental market in Dubai is experiencing a significant surge, with forecasts predicting an average increase of 18% in short-term rentals and over 13% in long-term leases. This growth is driven by a steady influx of expatriates and international professionals, making Dubai an attractive destination for both short-term and long-term residents.

The surge in rental demand is a testament to Dubai's appeal as a global city, offering a high quality of life, world-class infrastructure, and a vibrant cultural scene. Short-term rentals, in particular, are benefiting from the city's status as a major tourist and business hub, with visitors seeking flexible accommodation options. Long-term rentals are also on the rise, supported by the growing expatriate population and the city's reputation as a safe and stable environment for families and professionals.

Luxury Property and High-Net-Worth Investors

Luxury properties, including villas, beachfront homes, and penthouses, are expected to see price increases of 8-10% in 2025, particularly in areas like Dubai Hills Estate, Palm Jumeirah, and Jumeirah Golf Estates. Top Luxury Property highlights that iconic locations like Downtown Dubai and Dubai Marina will continue to attract high-net-worth investors seeking exclusive living experiences.

The luxury segment remains a cornerstone of Dubai's real estate market, driven by demand from high-net-worth individuals and investors seeking prestigious properties. The allure of Dubai's luxury real estate lies in its architectural innovation, premium amenities, and strategic locations offering stunning views and proximity to key attractions. As the market matures, developers are focusing on creating bespoke living experiences that cater to the discerning tastes of affluent buyers. This includes integrating smart home technologies and sustainable design elements to enhance the living experience.

Government Initiatives and Sustainability Focus

Dubai's government has implemented several initiatives to enhance the appeal of the real estate sector, including long-term visas, property law reforms, and tax incentives. These measures are designed to attract global talent and investments. The Golden Visa program, in particular, has been instrumental in attracting foreign investors by offering long-term residency options, thereby reshaping Dubai's property market.

Sustainability remains a core focus, with projects like Dubai Sustainable City offering eco-friendly developments with smart home technologies. Major developers are increasingly integrating sustainability into their projects, with examples of green-certified buildings, solar-powered communities, and new regulations mandating eco-friendly construction. The government's commitment to sustainability is also reflected in initiatives like the Dubai Clean Energy Strategy 2050, which aims to make Dubai a global center of clean energy and green economy.

Investment Opportunities

Short-term rentals are thriving, especially in tourist-heavy areas, offering high returns through flexible rental terms and advanced nightly rates. Emerging communities like Dubai South present opportunities for affordable housing investments, catering to the growing demand for well-designed, budget-friendly properties.

Investment opportunities in Dubai's real estate market are diverse, catering to a wide range of preferences and budgets. Short-term rentals offer lucrative returns for investors willing to capitalize on the city's tourism and business travel sectors. Meanwhile, affordable housing developments provide a stable investment option with the potential for long-term appreciation. As the market continues to evolve, investors are encouraged to explore new segments and emerging communities that offer promising growth prospects.

Foreign Investment and Market Stability

Dubai continues to attract foreign investments, particularly from Europe, Asia, and North America, driven by its robust infrastructure and investor-friendly policies. The market is expected to maintain stability despite global economic fluctuations, as highlighted by Top Luxury Property. This stability is underpinned by Dubai's diversified economy and strategic initiatives aimed at fostering growth and resilience.

Key Recommendations for Investors

Luxury Properties: Best for long-term capital appreciation.

Short-Term Rentals: Remain lucrative in tourist-heavy districts.

Emerging Areas: Dubai South offers affordable entry points.

Comparison with Past Years

Compared to 2023-24, there is a noticeable shift towards sustainability and smart living, with increased interest in eco-friendly developments and smart home technologies. The market's focus on long-term stability and diversification continues to attract a broad spectrum of investors.

The Next Chapter: Growth and Innovation in Dubai’s Real Estate

Dubai’s real estate market in 2025 presents a dynamic blend of opportunities and challenges, driven by economic resilience, visionary policies, and evolving consumer demands. With a strong focus on sustainability, innovation, and high-value investments, the city continues to reinforce its status as a global real estate powerhouse. Whether you're an investor eyeing luxury property, a developer looking at emerging communities, or a resident seeking a home in a thriving metropolis, Dubai offers a landscape brimming with potential. As the city’s skyline evolves and new developments take shape, those who embrace Dubai’s next chapter with strategic foresight will be best positioned to reap the rewards of its ever-expanding real estate frontier.