The UAE’s affordable luxury real estate sector is experiencing a significant boom, with 2024 marking a remarkable 34% surge in transaction values, largely driven by off-plan properties. This upward trend is expected to persist, with forecasts predicting a 5-8% annual price growth and average rental yields of 7% in 2025.
In particular, Dubai’s luxury market saw a 26% year-on-year increase in transaction prices for apartments in the city’s most sought-after areas. Industry experts predict this growth will continue into 2025, with an additional 5-10% rise in residential property prices, reflecting a maturing market that is striking an effective balance between supply and demand.
According to industry analysts, the momentum is being fueled by rising rental yields, favorable government policies, and an increasing preference for premium yet attainable residential options. In 2024, Dubai’s real estate market saw over 169,000 property sales valued at AED 488 billion, underscoring the sector’s strength and resilience. In response, developers are innovating with flexible payment plans and sustainability-focused projects, positioning the market for further expansion.
In a press release, Madhav Dhar, COO and Co-founder of ZāZEN Properties, commented, “The affordable luxury segment isn’t just a passing trend; it’s a fundamental shift in Dubai’s real estate landscape. Today’s homebuyers are looking for residences that strike the perfect balance between quality, sustainability, and value. At ZāZEN Properties, we’re proud to lead the charge with developments like The Hub Residences, which sets a new benchmark for premium luxury living.”
Looking ahead, the affordable luxury segment in the UAE is primed for sustained growth. Projections suggest the market will maintain an annual growth rate of 2.28% from 2025 to 2029, reaching an estimated value of AED 2.79 trillion by the end of the decade. This growth is expected to be supported by a combination of strong economic policies, investor-friendly regulations, and a focus on urban development.
As developers continue to meet growing demand, a 5-10% increase in property launches is anticipated for 2025, with a strong emphasis on this lucrative segment. This aligns with Dubai’s broader vision for affordable luxury development, reinforcing the city’s position as a premier global real estate hub.
With Dubai’s continued transformation into a global investment powerhouse, ZāZEN Properties remains at the forefront, aligning its projects with the evolving preferences of both buyers and investors.
