Balancing affordability, quality, accessibility, and investor demand is a complex challenge. However, recent developments in Dubai’s real estate sector indicate a positive trajectory for its rapid growth. Here are five significant changes reshaping the market in 2025.
1. Banks to Cease Financing Registration and Broker Fees
Effective February 1, banks and mortgage lenders will no longer finance the Dubai Land Department (DLD) registration fees (4%) or broker fees (2%). Previously, up to 80% of these costs could be incorporated into mortgage plans, easing the financial burden on buyers. Moving forward, these fees must be settled in full at the time of purchase.
This policy aims to enhance market stability and encourage serious, liquidity-ready buyers. While the upfront costs may be higher, the measure ensures greater financial commitment from investors and homeowners.
2. Introduction of the Dubai Smart Rental Index
To enhance transparency in the rental market, Dubai has introduced a new rating system for residential properties. This index evaluates over 60 factors, including location, amenities, sustainability, and security, assigning a star rating between 1 and 5—similar to hotel classifications.
This initiative is expected to drive improvements in existing properties and influence the development of new projects, ensuring they meet high standards upon completion. Higher-rated properties may also experience stronger rental yields and potential capital appreciation.
3. Expansion of Freehold Property Ownership
In a landmark decision, 457 plots—128 along Sheikh Zayed Road and 329 in Al Jaddaf—have been designated for freehold development. This change allows any nationality to purchase and develop properties in these prime locations, fostering increased investment and redevelopment.
Dubai’s leadership continues to demonstrate visionary urban planning, with this initiative likely to rejuvenate older properties and encourage the construction of new, high-quality developments.
4. Enhanced Connectivity with High-Speed Rail
The introduction of a high-speed passenger rail service by Etihad Rail, connecting Abu Dhabi and Dubai in just 30 minutes, marks a significant leap in UAE infrastructure. Future expansions to other emirates and beyond will further enhance connectivity.
This advancement is set to increase the attractiveness of real estate in areas with easy access to rail terminals, potentially driving property demand and values in these locations.
5. Expanded Visa Eligibility to Boost Residency and Investment
Dubai has further broadened its long-term visa offerings, including the popular Golden Visa, to attract skilled professionals, retirees, and remote workers. These policies directly encourage property investment, as many visa options require real estate purchases to qualify.
With an increasing number of expatriates securing residency, demand for both rental and owned properties is expected to grow, reinforcing Dubai’s status as a premier destination for long-term living.
Dubai’s strategic policy decisions in early 2025 are set to strengthen infrastructure, elevate real estate quality, and foster sustainable investment. As one of the world’s most sought-after cities, Dubai continues to attract residents and investors alike. By addressing key aspects such as affordability, accessibility, and quality, these measures ensure the property market remains robust and future-ready.
