Industry experts say that Dubai's real estate market is still doing well, even though the world is facing problems. Rental prices are high and demand is steady. But the market is changing because land prices are going up and there isn't much of it available.

According to Firas Al Msaddi, Chief Executive Officer of fäm Properties, Dubai's real estate market has reached a critical juncture where timing, location, and brand strength are becoming more and more crucial to success.

During the first nine months of 2025, there was a rise of 20% in off-plan sales and 10% rise in resale deals in Dubai. The numbers of units sold rose from 48,000 to 53,000. There were approximately 120,000 new homes built, which is 7.5% fewer compared to last year's 130,000.

Al Msaddi said. "Since 2020, land prices in Dubai have gone up by 200-300%,". This makes it harder for new businesses to get land and finish projects that make money.

Things are generally going well, but performance varies by area. For example, there are too many flats in Jumeirah Village; prices might go down when 27,000 new units come on the market. Jebel Ali, on the other hand, has a lot of room to grow because it plans to build 29,000 apartments and is still building the infrastructure.

Developers are looking outside of Dubai because land prices are rising so quickly. "Abu Dhabi offers a historic opportunity," Al Msaddi said over and over again. The price of Al Wasl plots has gone up from Dh500 per square foot in 2021 to Dh3,500 today. But property is still very cheap in Abu Dhabi, which brings developers who want to build in good places at low prices.

Emaar, DAMAC, and Aldar are still in charge of well-known brands. They use trust in their brand to charge more and sell faster. "Brand equity is very important now," Al Msaddi said. "An Emaar project sells differently than a project from a new developer."

Binghatti and other newcomers have grown quickly, but costs are rising, which makes things easier for experienced players with good track records.

A big change in the way people live is what is making this happen. He said, "People aren't just putting money into Dubai; they're choosing to live here." The city's shift from a temporary hub to a permanent home for expats is driving up demand and keeping growth going.

As 2025 comes to an end, Dubai's real estate market is at a crossroads. It is strong but selective, competitive but rewarding. The market is moving away from speculative cycles and toward more stable, fundamentals-driven growth because of the shift toward end-user demand.