Dubai property prices have risen by 27% year-on year as of January 2025, with villas seeing a rise of 31.2% and apartments also showing substantial growth. The surge in prices is indicative of the strong demand and limited supply in the market, which has been a consistent trend over the past few years, according to Ray Verma, luxury broker at Eden Realty UAE.

He said that the price growth outpaces that of major cities globally, such as London, Paris, and Madrid.

The market’s momentum is further evidenced by the surge in transaction volumes, according to Verma. In the last week alone, Dubai’s real estate sector recorded an impressive $4.9bn in transactions, highlighting the market’s dynamic nature and investors’ confidence, he says. These included the $9m sale of a canal-side apartment, indicating strong interest in high-value properties.

Verma said: “In response to the booming market, developers are launching ambitious new projects to meet the growing demand. Palma Development has recently announced the launch of the $1.3bn Serenia District in Jumeirah Islands, a project that is expected to further enhance Dubai’s premium real estate offerings. This development is set to attract high-end buyers and investors, contributing to the market’s upward trajectory.

Underscores the confidence

“Similarly, Aldar has introduced a new luxury project in Dubai, featuring unique elements such as wildlife and bee-keeping zones, catering to the increasing demand for sustainable and eco-friendly living environments.

“The attractiveness of Dubai’s real estate market is not only drawing buyers but also attracting international real estate companies. BAMX Properties has recently expanded its operations to the UAE, specifically targeting Dubai’s thriving property sector.

“This move underscores the confidence that global firms have in Dubai’s real estate market and its potential for continued growth. The entry of international players is likely to further stimulate competition and innovation in the market, benefiting both developers and buyers.

“Looking ahead, the future of Dubai’s real estate market appears promising. Forecasts point to a 5-8% annual price growth and an average rental yield of 7% in 2025. These projections are supported by various factors, including Dubai’s strategic location, business-friendly policies, and ongoing infrastructure developments.

“The government’s initiatives to streamline regulatory approvals, offer long-term residency visas, and allow 100% foreign ownership in various sectors, including real estate, are expected to sustain the market’s appeal to international investors.”