The year 2024 came with new records and great growth for Dubai’s real estate sector. The Dubai Land Department (DLD) has made decisions and improvements in alignment with the Dubai Economic Agenda D33, establishing a bolstered infrastructure for the real estate scene in 2025. Between streamlined dispute settlements procedures, and the improving rent regulation with the new Smart Rental Index, Dubai is set for a year of unprecedented milestones driven by innovation and sustainability. That being said, let’s examine the key real estate trends that have taken shape in the year 2024, and what we expect to carry over into 2025.
Luxury Homes: A Flourishing Investment Market
The demand for luxury homes has reached impressive heights in the past year. In the third quarter of 2024 alone, Palm Jumeirah witnessed an influx of high-value transactions, with over 100 transactions closing at over AED10 million, and 3 of them being over AED200 million.
This comes as no surprise, given the government of Dubai has introduced highly favorable property policies over the year, including authorization of 100% foreign ownership of commercial companies outside free zones.
Additionally, the newly introduced long-term visas coupled with relaxed visa rules and tax incentives have played a significant role in the substantial growth in real estate investment and property transactions.
Interest in property ownership is expected to both grow and shift to new areas in this year. This is contributed to by two major factors, one being the reconstruction of what will be the biggest airport in the world, the AED128 billion Al Maktoum International Airport situated in Jebel Ali. The second factor is the RTA’s upcoming Dubai Metro Blue Line set for 2029, which is slowly but surely shifting investor interest to its service areas.
Sustainability: Shaping a Greener Dubai
With the UAE’s commitment to achieving net-zero emissions by 2050, real estate in Dubai has taken a positive turn towards sustainable developments. Developers are increasingly integrating eco-friendly designs, energy-efficient technologies, and ‘green building standards’ into their projects. Areas like Al Barari and the Sustainable City utilize solar panels and energy-efficient systems to promote eco-friendly environments. The trend towards sustainability is transforming Dubai’s skyline into one that reflects both luxury and environmental responsibility, as well as creating more ethical investment options for environmentally conscious investors. New policies and regulations are expected in 2025 to advance the green mindset in real estate.
Affordability: Catering to a Wider Audience
The interest in property ownership has grown tremendously in 2024, with over 65,500 manual searches for ‘freehold properties’ recorded in the year. It is a causational relationship between the growing demand for more affordable homes, which has encouraged developers to indulge this market gap and in turn create more accessible property ownership opportunities. This rising real estate trend, which was present in 2024, and we expect more of in 2025, played a notable role in the peak number of sales achieved in the past year. Diversifying property investment options along with various market-boosting efforts have led to a record 180.900 transactions in 2024 valued at AED 625 billion.
Rent Regulation: Protecting Tenants and Landlords
The Smart Rental Index introduced earlier this January is set to play a role in creating a fairer and more stable rental market in Dubai. The index utilizes a 5-star rating system updated with live data to provide an accurate assessment of the property. The classification takes into account factors such as the quality of the building, available amenities, services, and the strategic location of the property. By considering these elements, the system ensures fairness in rental pricing. The index was introduced in the first week of 2025, and is expected to set reliable standards for rent and aid in dissolving rent disputes. This ultimately creates a fairer, more informed middle ground between tenants, property owners and even brokers for negotiation and rent.
As we look ahead to 2025, we’re excited to see what real estate trends unfold, and what the promising year can surprise us with. Dubai’s real estate sector is positioned for continued growth and transformation thanks to various government efforts and an optimal investment environment. With ongoing advancements in policies, sustainability, and market stability, the city remains a dynamic and attractive destination for investors and homeowners. The innovative steps being taken today will ensure Dubai’s real estate sector flourishes into an innovative, prosperous tomorrow.
Written by: Samah ElBashir