As the UAE’s real estate market gears up for significant growth in 2025, recent reports indicate a shift in investor interest toward Ras Al Khaimah, Sharjah, and other emirates, driven by evolving consumer demands and a search for more competitive opportunities.
However, some experts are confident that Dubai’s real estate market is set for continued growth this year, though at a steadier pace than the sharp increases witnessed in recent years.
“The market has experienced a significant surge, particularly in the luxury segment, driven by high-net-worth individuals and foreign investors seeking high-end properties in prime locations. While the momentum remains positive, analysts predict a more sustainable trajectory, with residential property prices expected to increase by approximately 8%, a slowdown from the double-digit growth recorded in prior years,” shared Fouad Bekkar, CEO of Coralytics.
Fouad highlighted the integration of AI and how it is transforming the industry.
“Partnerships such as AI-driven solutions are modernizing and streamlining the market by enhancing operational efficiency and improving property marketing strategies. This combination of innovation, sustainability, and global appeal ensures that Dubai remains a top destination for real estate investment well into the future,” he elaborated.
While the rapid boom of recent years may ease, Dubai’s real estate market is projected to maintain a steady upward trajectory in 2025, fueled by strong fundamentals, an expanding housing supply, and continued demand for high-end properties.
This shift toward a more stable, sustainable, and innovation-driven market highlights Dubai’s long-term ambition to solidify its position as a global leader in luxury real estate and sustainable urban development.
Bekkar anticipates a steady increase in both rental and property values, supported by robust demand across residential and commercial sectors.
“Dubai’s focus on attracting expatriates and global talent through long-term visas and residency programs will also contribute to sustained demand,” he explained.
Speaking of the factors he thinks will contribute to the growth, he emphasized the government’s commitment to digital transformation and innovation, encouraging the adoption of PropTech solutions, adding, “Coralytics’ AI tools, which improve operational efficiency and market transparency,” further noting that “sustainability initiatives” are becoming central to development plans.
Arash Jalili, CEO and Founder, of Unique Properties, also shared insights on sustainability being the prime focus, noting, “As sustainability becomes a global priority, Dubai is leading the way with eco-friendly and smart buildings. Developments like The Sustainable City and District 2020 are setting new standards for green living, while smart home technologies are becoming a must-have feature for luxury properties.”
Demand for sustainable buildings in Dubai is expected to grow, driven by both regulatory initiatives and consumer preferences. Investing in such properties not only aligns with global trends but also enhances long-term asset value.
