Surging demand, that is set to outshine supply, government incentives and a cutting-edge infrastructure give the emirate enough heft to beat economic headwinds
Dubai’s real estate market continues to outperform global hotspots like New York, London and Hong Kong, with no signs of a slowdown in sight, with experts saying property prices – and rents – in the emirate will continue to climb in 2025, with the recent record rainfall and subsequent flooding having only a “minimal’ impact on the realty market.
Despite economic fluctuations worldwide, experts told Al Arabiya English that property prices in the emirate are projected to climb a further five to seven percent annually in 2024 and 2025, driven by surging demand that far outstrips available supply.
“Historically, Dubai’s property market has shown resilience and continued growth despite occasional fluctuations,” says Aran Lomax, managing partner of TREO homes. “With increasing demand due to an influx of people moving to Dubai and development initiatives from the government, the growth of Dubai’s real estate market doesn’t show any sign of slowing.
“In fact, data from 2023 shows that Dubai ranks first for the most number of homes sold over $10M, overtaking established real estate hotspots such as New York, London, and Hong Kong.”
Floods to have ‘minimal impact on prices’
Zarah Evans, owner and managing partner of Exclusive Links Real Estate Broker, said the recent floods across the UAE – which left some homes submerged and many battling water damage – are unlikely to stem demand for property.
“The recent floods in Dubai may see a drop in interest in some of the communities that bore the worst of the rain, but only in the immediate months that follow,” she told Al Arabiya English. “Dubai is very quick to react positively to challenges, and this was evident immediately after the rains.”
She further said: “The government was announcing upgrades to the drainage system and developers were stepping in and offering residents free repairs on any damage. At times like this, Dubai, as a larger community, pulls together and is resilient, and any prices that have any adjustments will soon bounce back.”
