The Dubai property boom will continue to drive house prices up by 8% in 2025, underpinned by a shortage in supply, according to a new report by real estate consultancy Knight Frank. Property Management Dubai will rise with increase in Dubai real estate demands.
The ‘Dubai Residential Market Review: Special Edition’ study reveals that house prices across the emirate currently stand 19.9% higher than the same time last year, “evidenced by the surge in property transactions throughout 2024.”
In Q3 2024, the number of transactions reached 47,269, the highest quarterly figure on record, Knight Frank said, indicating a 41.8% increase compared to the same period in 2023.
The total value of deals between January and September 2024 exceeded 306.3 billion UAE dirhams ($83.4 billion), with a 36% increase over the same period in 2023. In Q3 alone, sales volume reached AED 116.8 billion.
Price Growth
- Dubai property prices are forecasted to rise in 2025, following a 19.9% increase in 2024
- Q3 2024 saw 47,269 transactions, the highest quarterly figure ever recorded
- Factors like oil price volatility and competition from other cities could influence Dubai's real estate growth.
“House prices in Dubai continue to be fuelled by relentless demand. Unsurprisingly, prices in the mainstream market continue to edge upwards, climbing by 4.3% in Q3, taking city-wide prices up by 19.9% on this time last year...,” Faisal Durrani, Partner – Head of Research, MENA, said.
He continued, “Across the city, there has been a 30% year-on-year decline in the number of property listings. Furthermore, the rate at which luxury homes are selling has also continued to climb, tripling over the last 18 months to almost one in every five homes listed being sold between June and September.”
The report reveals the rate at which the number of homes valued over $1 million has grown in Dubai, jumping from 6.3% of all sales in 2020 to 18.1% today. “This effectively means nearly 1 in every five homes in Dubai is worth over $1 million,” Durani said. However, new buyers could see some respite as well, with the report indicating that the rate of growth in house prices will begin to slow in 2025.
“For Dubai’s prime residential market, following an increase of 6% the last twelve months, we expect values to end 2024 in line with our original consensus forecast of 5% issued last autumn,” Durrani said, adding that for 2025, they are forecasting growth to be more modest and closer to 5%, “which builds on the 44.4% growth registered during 2022 and the 16.3% increase last year.”
Supply Concerns
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