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Source: Freepik
Published on 01/31/2025

Dubai Real Estate Set for Another Record-Breaking Year in 2025

Dubai’s Property Market Hits 170,992 Sales in 2024, Office Occupancy at 97%

Dubai’s real estate market is poised for continued growth in 2025, driven by strong investor confidence, a thriving luxury sector, and surging commercial demand, according to a new report by Engel & Völkers Middle East.

In 2024, residential transactions soared by 40.3% to 170,992 units—more than five times the volume recorded in 2020. Off-plan sales led the market, making up 63% of total transactions, as investors capitalized on high-growth opportunities. Luxury real estate also saw strong momentum, with sales of properties over AED 10 million rising by 20.5% year-on-year. Popular investment areas included Jumeirah Village Circle, Business Bay, and Dubai Hills Estate for off-plan properties. At the same time, Dubai Marina and Downtown Dubai remained key hotspots for ready-to-move homes.

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Dubai’s commercial sector also experienced unprecedented demand, with more than 24,000 new businesses registered in 2024. Office occupancy rates in DIFC, Downtown Dubai, and Business Bay reached 95-97%, leading to double-digit rental growth. Office rents climbed 11%, retail rents by 9.7%, and warehouse prices surged 21.1%. Developers are responding with new commercial projects, including a Grade A office tower on Sheikh Zayed Road.

Looking ahead, investor sentiment for 2025 remains highly optimistic, bolstered by mega-developments like Palm Jebel Ali and The Oasis, as well as government-led incentives, including visa reforms and free zone benefits. With Dubai’s strong economic momentum, its real estate market is set for another year of record-breaking performance, reinforcing its status as a top global investment destination.