Global Market Insight - Dubai

Dubai has positioned itself as the financial and business gateway of the Gulf. The ongoing expansion of the Dubai International Financial Centre (DIFC) and a steady influx of high-net-worth individuals (HNWIs) are driving deep, sustained demand across both residential and commercial property sectors.

Its open economy, world-class infrastructure, and zero income tax regime make it a preferred base for entrepreneurs, professionals, and multinational firms seeking long-term stability and opportunity.

Tourism remains a key pillar of Dubai's economic strength, consistently feeding into population growth and real estate demand. The emirate welcomed around 19 million visitors last year, and airport capacity is set to rise toward 115 million passengers by 2032, according to official projections.

This seamless link between tourism, residency, and property ownership continues to convert visitors into residents and ultimately, homeowners, reinforcing sustainable end-user demand.

Dubai's policy environment is built for investors. Programs such as the Golden Visa, which offers 10-year residency for qualifying investors, and the government's push for tokenised property transactions, have broadened access to real estate ownership.

These measures not only attract global capital but also modernise the market, allowing greater transparency, liquidity, and flexibility for investors at every level.

Dubai's property market continues to break records. In H1 2025, total transaction values reached between AED 268 billion and AED 431 billion, with quarterly volumes exceeding 50,000 sales.

This level of liquidity signals a mature, vibrant market with depth across multiple price segments, from affordable mid-tier housing to luxury waterfront penthouses.

Compared to the pre-2008 boom, Dubai's property market today operates with far greater discipline and financial prudence. Loan-to-value ratios average around 80%, and developers are now required to meet stricter payment and construction benchmarks.

This structure provides a stronger foundation for sustainable growth, reducing speculative risks and ensuring that the market continues to evolve in line with long-term investor confidence.

The post-2020 growth trend continues, with property prices up by around 70% since end-2019. Transaction volumes in 2025 are reaching fresh records, driven by both domestic and international buyers.

The upper-tier market (US$10M+) continues to set new highs, while the mid to upper-mid segments remain robust thanks to strong end-user demand and lifestyle-driven purchasing.

A significant development pipeline is underway. According to JLL, approximately 250,000 new homes are expected to enter the market over the next few years - an increase of roughly 30% in total housing stock.

This expanding supply will be an important factor to monitor as the market balances sustained demand with future completions.

Dubai's property sector is entering a more disciplined phase. Tighter mortgage limits (~80% LTV) and stricter land-payment requirements have introduced financial stability and reduced speculative behaviour compared to earlier cycles.

While some forecasters caution that a mild price correction could occur as supply delivers into 2026, prime and well-located zones are expected to remain resilient due to limited stock and sustained end-user demand.

Guideposts compiled from IQI Dubai investor packs.

The city's established cores such as Downtown Dubai, DIFC, Business Bay, Palm Jumeirah, and Dubai Marina continue to attract both global investors and high-earning professionals.

These areas benefit from strong inflows from the finance sector, consistent tourism conversion, and access to premium retail, dining, and waterfront amenities.

Emerging master-planned communities including Dubai Hills, Jumeirah Village Circle (JVC), Creek Harbour, and Dubai Islands are leading 2025's launch activity. They offer diversified price points, modern design, and strong family-oriented appeal, making them ideal for investors seeking balanced rental demand and capital growth.

Dubai continues to dominate the global ultra-prime market, with properties priced above US$10 million setting new records in both volume and value. Limited stock, exclusive waterfront locations, and a truly international buyer base keep this segment highly resilient and prestigious.

But the appeal goes beyond numbers. From luxury living to diverse, dynamic communities, Dubai delivers a lifestyle that speaks to everyone. A rare place where opportunity meets ease, and the world comes together.

For Haroon, Dubai's energy is unmatched. "That's why people choose Dubai. That's the place to be. That's the place where we want to be."

With strong investor confidence, world-class infrastructure, and policies that welcome global talent, Dubai's property market isn't just active; it's alive. And now more than ever, it's the place to be.

Golden Visa (10-Year Residency): Available for investors with property purchases valued from AED 2 million and above. Eligible investors may also sponsor their immediate family members.

Purchase Costs: Buyers should expect Dubai Land Department (DLD) fees of 4%, an agency fee of around 2%, along with trustee or administrative charges and community service fees, which vary by development.

Off-Plan Purchases: Payment is typically structured in stages over the construction period, with handover taking place within two to three years. Liquidity tends to be lower before handover, so investors are advised to plan for a longer holding period.

Before entering the market, start by defining your investment goal. Decide whether you are seeking immediate income through ready properties or long-term growth through off-plan developments with staged cash flow.

Focus on neighbourhoods that consistently attract tenants, such as DIFC, Downtown Dubai, and Dubai Marina, where proximity to workplaces, schools, and lifestyle amenities ensures durable rental demand.

Compare price-per-square-foot (psf) trends and absorption rates across different districts. As of Q2 2025, the citywide average stands at AED 1,809 psf, reflecting steady demand and capital resilience.

Lastly, monitor the market's development cycle and upcoming supply. JLL estimates approximately 250,000 new homes will be delivered over the next few years, making it essential to balance opportunity with awareness of future pipeline risks.

Dubai's market fundamentals are significantly stronger than they were in 2008. Current loan-to-value ratios average around 80%, and developers are required to make upfront land payments, creating a more stable structure.

While new supply remains substantial, some agencies anticipate a mild correction as additional projects are completed into 2026. Investors are advised to prioritise location quality, reputable developers, and a medium- to long-term holding strategy.

Typical gross yields range between 6 to 7 percent for ready properties and 7 to 8 percent for off-plan units post-handover, before costs.

It is prudent to stress-test your investment by allowing for one to two months of potential vacancy and factoring in service charges specific to each community.

The average transaction value among IQI's Dubai buyer cohort stands at USD 3.1 million in 2025 year-to-date, based on internal data.

For cross-checking and deeper analysis, refer to Savills' Q2 2025 report and GlobalPropertyGuide's Dubai price history, which provide authoritative and regularly updated market data.