Dubai’s real estate market is poised for stabilization in 2025, with rent increases expected to slow down significantly. This shift is driven by a record-breaking supply of over 72,300 residential units scheduled for handover in 2025, offering tenants and investors a more balanced and sustainable rental environment. Industry experts attribute this trend to the introduction of the smart rental index, which provides transparent, data-driven pricing mechanisms to help tenants and landlords make informed decisions.
According to Betterhomes, a leading real estate brokerage, the influx of new properties will temper the rapid price growth seen in recent years. “The combination of increased supply and the smart rental index will create a more balanced market, benefiting both tenants and investors,” said the firm.
Rupert Simmonds, Director of Leasing at Betterhomes, noted that rent increases slowed in 2024 compared to previous years, signaling the beginning of market stabilization. With 27,000 units completed in 2024 and a staggering 72,365 units expected in 2025—a 171% increase—Dubai’s property market is set to absorb an estimated 163,000 new housing units between 2025 and 2026.
Christopher Cina, Director for Development Sales and Consultancy at Betterhomes, emphasized that the market’s resilience, supported by economic growth and strategic infrastructure investments, will sustain investor confidence. “Dubai’s position as a global real estate hub remains strong, with robust demand from international investors and end-users driving sustainable growth,” he added.
Key Highlights:
- Record Supply in 2025: Over 72,300 residential units are set for handover, marking a 171% increase from 2024.
- Smart Rental Index: Transparent pricing mechanisms will provide accurate market insights, fostering a balanced rental environment.
- Market Stabilization: Rent increases slowed in 2024, with prices expected to stabilize by 2026.
- High-Demand Areas: Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay continue to attract investors and end-users.
- Infrastructure and Investment: Ambitious projects and sustained foreign investment will support long-term market demand.
2024 Market Overview:
- Project Launches: Over 470 projects were launched in Dubai in 2024, averaging one new project per day.
- Unit Completions: 27,000 units were handed over in 2024, with 77% being apartments, 17% townhouses, and 6% villas.
- 2025 Pipeline: Sobha Hartland, Arjan, and JVC will account for 41% of the 9,000 units scheduled for handover in Q1 2025.
Regulatory Measures:
To prevent market overheating, UAE banks have been instructed to finance only the property value, excluding the 4% Dubai Land Department (DLD) fee and 2% brokerage fee for mortgages.
Dubai’s real estate market remains a global leader, offering a diverse range of residential options to meet the needs of its growing urban population. With a focus on sustainability, transparency, and innovation, the emirate is well-positioned for continued growth and stability in the years to come.
Explore Dubai’s Real Estate Opportunities Today – Whether you’re an investor or an end-user, now is the time to capitalize on a balanced and thriving property market.
