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Published on 01/22/2025

Dubai Real Estate Market Nears Peak, Set for Moderate Growth in 2025

5-10% Growth Expected in 2025 as Demand Outpaces Supply

Dubai's property market is nearing its peak, with prices in some segments expected to stabilize this year, according to real estate consultancy ValuStrat. The consultancy projects a 5-10% capital value growth in 2025, signaling a more moderate performance compared to 2024. While high-end villas may see slower price growth, sustained demand for luxury and off-plan properties is expected to drive the market forward.

ValuStrat highlighted a significant shift towards ready-to-move-in homes in 2024, as tenants transitioned to ownership amidst rising rents and reduced mortgage rates. Ready sales grew by 12.3%, while off-plan surged by 76.4%. Affordable units dominated, with 40% of ready sales involving properties under Dh1 million.

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Industry leaders remain optimistic about 2025, citing strong demand and limited supply. Mark Richards, CEO of The Network, foresees robust market performance, while Driven Properties' Abdullah Alajaji emphasizes the growing appeal of affordable housing and off-plan investments. As mortgage rates remain favorable, the market's steady growth appears well-supported by economic resilience and investor confidence.