Dubai property: 2025 prices set to rise, recent flood has minimal impact

Dubai waters

With analysts predicting a continued upward trend in property prices and rents throughout 2025, Dubai’s real estate market appeared as the leader on the global stage, surpassing major cities like New York, London, and Hong Kong. This forecast comes despite the recent heavy rainfall and flooding, which experts believe will only minimally impact the market.

Specialists anticipate a yearly increase in property prices by 5% to 7% for the next two years, attributing this growth to a demand that exceeds supply.

Hussain Sajwani, founder and chairman of  DAMAC Properties, remains optimistic about the growth trajectory, supported by solid economic indicators and excellent transaction levels in key developments. The proactive measures taken by regulators and leadership ensure that Dubai remains an attractive hub for investors and end-users alike.

The anticipated population growth in Dubai, expected to reach 5.8 million by 2040, necessitates the construction of around 54,440 new homes annually to match demand, which includes the growing tourist population. Despite the continuous launch of new housing projects, the supply of ready homes remains constrained, thereby pushing rental prices up.Looking ahead, numerous developments are expected for completion in 2024, including luxury villas and high-end apartments, reflecting the city’s ongoing expansion and its appeal as a luxury destination.

Government policies, including recent visa reforms and the absence of property taxes, continue to bolster the real estate sector’s growth. These initiatives enhance Dubai’s appeal as a prime investment destination, promoting a dynamic real estate market poised for continued growth.

As Dubai continues to innovate and expand, the real estate market remains a cornerstone of its economic success, driven by a combination of strategic government actions, a growing population, and a commitment to maintaining a high quality of life for its residents.

Original article reference: Alarabiya.

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