whatsapp
Source: Freepik
Published on 02/03/2025

Dubai Real Estate Market 2025 Sets Record Growth, Rising Rents & Surging Office Demand

6% Rent Surge, 18% Price Hike & 42,000 New Homes Amid Record Office Demand

Dubai’s real estate market experienced a historic year in 2024, with soaring demand driving record-breaking growth in both residential and office sectors. According to Cushman & Wakefield Core’s Annual Report, prices, rents, and transactions surged despite limited supply.

Key Market Insights:

  • Residential Supply Shortfall: Only 30,200 units were handed over in 2024, 30% lower than in 2023, fueling price hikes.

  • Rising Rents & Prices: Citywide rents increased by 16%, while sales prices jumped 18% year-on-year.

  • Office Sector Boom: Dubai's office occupancy hit 92% in 2024 and is expected to surpass 94% by 2025. Office rents soared 22%, with another 10-12% increase forecasted.

  • Luxury Surge: Ultra-prime properties saw record sales, fueled by a global influx of millionaires. New waterfront developments provide investment opportunities but face comparisons to Palm Jumeirah’s long-term value.

Off-Plan Dominance: Off-plan transactions now double those in the secondary market, shifting Dubai’s property landscape toward investors.

INNER (86)

What’s Next in 2025?

  • More Residential Units: A 41% increase in handovers, with 42,000+ units expected, offering some market relief.

  • Steady Price Growth: Rent and sales price increases will likely moderate to under 10% as new supply enters.

  • Office Space Crunch Continues: Double the new office supply is coming in 2025 (1.66M sq. ft.), but the market remains tight until at least 2027-2028.

  • New Mortgage Rules: From February 2025, a 6% additional down payment for mortgage buyers may slow mid-market transactions but is expected to have minimal overall impact.

  • Expansion of Freehold Areas: Sheikh Zayed Road and Al Jaddaf now offer freehold ownership, a move expected to increase asset values and reshape the owner-occupier mix.

With regulatory updates, increased supply, and growing investor confidence, Dubai’s real estate market remains a powerhouse, balancing strong demand with evolving opportunities.