Dubai real estate market breaks records in 2024-2025: what investors need to know

Dubai's real estate market continues to attract global attention, not only for its iconic skyline, but more importantly for its remarkable resilience and continued growth. This sector is showing robust development, driven by an interplay of demographic shifts, strategic government initiatives and unshakable investor confidence.

In this article, we unravel the unprecedented market performance of Dubai's real estate market in 2024 and early 2025, and present the key figures you need to know as an investor.

Unprecedented growth: the figures of Dubai's real estate market

The period of 2024 and the first half of 2025 is downright historic for Dubai's real estate market. The market realized record-breaking transaction volumes and values in both the residential and commercial segments.

In 2024, Dubai recorded an impressive 180,900 real estate transactions, with a total value of AED 522 billion. This represented an increase of 36% in volume and 27% in value over the previous year.

That strong momentum continued into 2025. In the second quarter of 2025, 53,252 real estate transactions were recorded, up 22% in volume and 49% in value, to AED 184 billion. These figures confirm the exceptional liquidity and deep confidence in the market.

Residential highlights: apartments, villas and luxury

The residential market is driving this growth. Residential unit transactions increased 39% in 2024 compared to 2023, with total sales of nearly AED 434 billion, up 33%. Average residential prices in the fourth quarter of 2024 rose 18% year-on-year. In May 2025, total property prices were even 25% higher than a year earlier.

Let's take a closer look at performance by housing type:

• Apartments: prices rose around 24% year-on-year through November 2024 (ValuStrat). This trend continued into 2025, indicating broad and sustained demand for urban housing.
  
  
• Villas: prices rose around 32% year-on-year through November 2024 (ValuStrat). Detached villas are now valued on average 65% above their previous peak in 2014. This shows the growing preference for more spacious homes and family-friendly neighborhoods.
  
  
• Luxury segment: sales of homes over $10 million reached a record high of $2.6 billion in Q2 2025, up 63% from Q2 2024. This confirms a strong and sustained demand for luxury real estate. Iconic locations such as Palm Jumeirah, La Mer and Downtown Dubai continue to lead the way.
  
  

Rental market dynamics: attractive yields and strong demand

The rental market also performed strongly, confirming the stable demand for housing in Dubai.

• Residential rents increased 21% through May 2024 (CBRE).
  
  
• By the end of 2024, the increase was about 16%.
  
  

These developments translate into attractive returns for investors.

• Dubai's real estate market offers an average return on investment (roi) of 6.3% by 2025.
  

• Studio apartments are the most lucrative, with an average return of about 8%.

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Activity in primary and secondary market: broad confidence

Market activity is not limited to one segment. Both the primary market (off-plan) and the secondary market (existing homes) are showing strong growth.

Sales by developers in the primary market increased 30% year-on-year to AED 334 billion by 2024. This shows investors' confidence in future projects and their willingness to get in early.

The secondary market, in which existing properties are resold, also experienced healthy growth of 21%, to total AED 188 billion by 2024.

This combination of growth in both segments indicates broad and structural investor confidence. The growth is not based on speculation, but on fundamental and sustained demand from both local and international buyers.

Conclusion: a booming market in full swing

Dubai's real estate market is living proof of economic growth and strategic vision. Record-breaking transaction volumes and values, along with strong price increases and attractive returns on investment in both the apartment and villa segments, show that the market is booming.

The robust performance of both the primary and secondary markets underscore the deep confidence of investors, reinforced by stable policies, transparent regulations and Dubai's appeal as a global hub for living, working and investing.

Discover the potential of Dubai's real estate market

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Sources:
ValuStrat, CBRE, Dubai Land Department, DXB Interact, Gulf News, Khaleej Times

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