Back To MediaDubai's property market is expected to see house prices increase by 8% in 2025 driven by a continued shortage of supply, according to a report by Knight Frank. Current prices are already up by 19.9% compared to last year with transaction volumes hitting record highs. In Q3 2024, property deals reached AED 47.3 billion, marking a 36% rise from the previous year.
Luxury home sales have surged with nearly 1 in 5 homes in Dubai now valued at over $1 million, up from 6.3% in 2020. The supply of villas remains limited and this shortage is expected to continue with only 8,900 villas forecasted by the end of 2024. However, price growth is expected to slow in 2025 with a more modest increase of 5%.
Knight Frank forecasts the need for 37,600 to 87,700 homes annually by 2040 with a potential long-term supply gap. Despite this, external risks including global economic challenges could impact Dubai's real estate market.
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