Yearly Comparison of Property Prices in Dubai

Indeed, Dubai is a global attraction and is also considered a hub for real estate investment. However, from an investor’s point of view, it is crucial to analyze yearly market trends to not only get deep insights into the performance of the market but also evaluate future potential in order to make an informed decision. Given this, exploring Dubai’s yearly trends is quite helpful in making real estate investment decisions. 

Known for its iconic skyline, favorable government policies, tax advantages, high returns on investments, and the development of innovative luxury real estate, Dubai fascinates real estate investors from all over the world. If you desire to come to Dubai for property-related investment then give this blog a read to learn about the yearly performance of the market and assess ROI potential.

Overview of the Dubai Property Market in 2024 vs. 2025

Dubai’s real estate market is growing exponentially. In recent years, it has seen exceptional expansion. With an unprecedented 172124 transactions happening in 2024- a whopping 38.6% increase compared to the previous year- the metropolitan city reflects its relentless growing real estate and investment potential. Furthermore, when it comes to the value of sales, it is around AED 441.5 billion, showcasing a 28% hike as compared to last year. Prices of properties in Dubai in 2024 also increased significantly as it is being stated that a 41% increase has been observed in the first half of the year.

So when we consider the number of transactions, value of sales and increase in the prices of properties, the available data highlights that 2024 has been a rewarding year. This positive development is the outcome of the government’s initiatives, safe and secure investment opportunities and the confidence of investors. Based on the given data, we can also predict that 2025 will be an extraordinary year for property investors in Dubai, UAE.

Price Trends in Different Property Types: Apartments, Villas, and Commercial Properties

Considering the real estate market’s available data, price trends differ across various types of properties such as apartments, villas and commercial real estate. When it comes to the prices of apartments, the average price increase is 20.43% in Q1 2024, highlighting a significant surge when compared to the previous year which rose to 12.4%. 

On the other hand, prices of villas also went up around 22.08% in Q1 2024 given the y-o-y matrix and increased significantly as compared to the previous year’s growth which remained around 14.82%. Additionally, a notable shift has also been observed in the prices of commercial real estate because of the relentlessly growing demands, especially in popular areas of the city.

Historical Overview of Property Prices: Last 10 Years

Before digging deeper, readers need to know about factors that can influence the demand and prices of real estate. These factors include the overall economic condition of a market, the policies of the respective government, tax ratio or incentives, supply and demand dynamics, foreign direct investment, suitability of a market for business activities or business friendliness, employment opportunities, safety and security aspects, the availability of mortgages and the overall status of infrastructure. Above mentioned are some of the key factors that can significantly impact the real estate market of a country in both positive and negative directions. 

One of the most considerable things when making an investment decision is demand and supply dynamics because this factor plays a critical role in determining the sales and rental values of properties. An increase in demand leads to higher selling and rental prices and an increase in supply lowers the both selling and rental values of properties. 

Market Trends Of Dubai’s Real Estate

2014: The city’s property market increased this year mainly because of a surge in the demand for residential real estate. Home-seekers and investors contributed significantly. 41,715 investors and end-users made purchases, surpassing AED 109 billion in property transactions. 

2015: with an 8% increase in property transactions from the previous year, the year 2015 also remained a significant year. The Dubai Land Department (DLD) informed that the transactions of AED 267 billion have been noted in 2015. Note: This figure includes all sales, mortgage and land transactions of that year.

2016: This year observed 60,595 transactions worth AED 259 billion, highlighting the stability and maturity of Dubai’s real estate market. Along with the GCC nationals, foreign investors made huge transactions to capitalize on the growth and expansion of Dubai’s real estate market.

2017: As usual, Dubai’s property market presented an upward trajectory this year too. 69,000 transactions worth AED 285 billion were reported by the DLD in 2017. Sales, mortgage and land transactions have been added to the given figure. This year 30000 transactions were made by foreigners. 

2018: This year experienced a shift in the trajectory as the overall volume of property-related transactions declined in 2018. However, the overall market situation remained constant. This trend highlighted the resilience and adaptability of Dubai’s property sector. 

2019: The year 2019 remained a better year than the previous year In terms of Dubai’s real estate sector. Not only did it observe an increase in sales sector transactions but the off-plan segment of the market also produced an upward trend.

2020: This was the year when the pandemic Covid-19 hit the world and shackled normalcy across the globe. It also impacted the property sector of Dubai, UAE. However, the city managed to reduce the impact of this calamity and the second half of the year also observed an increase in the confidence of investors.

2021: The city recovered completely and experienced exceptional growth. 2021 was the year when Dubai observed a 71% increase in the value of transactions as compared to the previous year. The overall value of transactions was worth AED 300 billion.

2022: With properties’ transactional value of  256.6 billion, 2022 is also observed as a decent year. 97466 sales transactions were recorded in that year.

2023: This year was dubbed a magnificent year as it recorded 132,628 transactions in a single year, creating a history. The available data highlights that 2023 year recorded a significant increase in real estate transactions valued at AED 409.8 billion.

2024: The previous year has also been a remarkable year for Dubai’s property sector as it set a new record with 180,900 transactions worth AED 522.1 billion. Along with the volume of transactions, the overall value of sold properties in Dubai increased outstandingly.

So, if we analyze the last 10 years of Dubai’s real estate sector, we can find that the property sector only grew over the years. Even it showed remarkable growth, highlighting not only the performance but potential of the city’s real estate market. In Particular, recent years have documented a significant rise in the number and value of property transactions in Dubai. Considering the data of the last 10 years, we can only predict a positive trend. It is evident that 2025 will also present remarkable growth and continue the legacy of Dubai’s property market.

How the Cost of Living Relates to Property Prices

The cost of living in Dubai is also increasing over time. Several factors lead to this development and add to the living expenses. Prices of goods, Inflation, an increase in the cost of materials and a surge in labor cost increase the price of developing a property and eventually the overall value of a property. It means if the cost of living increases, the rental and selling value of properties also enhance. In addition to that, the development of luxury real estate such as seafront properties including villas for sale in Dubai, mansions and penthouses also rocket up the selling and rental values of properties. High-net-worth individuals normally prefer buying luxury real estate in notable areas of the city, while professionals and the middle class tend to purchase affordable properties based on their financial resources.

Dubai’s Real Estate Market:  Insights for 2025

Based on y-o-y development, Dubai’s property market will continue to thrive in 2025. The property market of this metropolitan city is now focusing on the development of sustainable, innovative and luxury real estate, fascinating not only local but foreign investors. Furthermore, its business environment, employment opportunities, tax advantages and favorable government policies also highlight its potential for further relentless expansion. No matter whether you are a local, expat or foreign national, buying luxury or affordable property, residential or commercial real estate, this city has it all and strives to cater to the diverse needs and preferences of clients and compete with other popular property markets like London, Singapore and New York.

• The city enjoys growth in a number of sectors such as real estate, trade, tourism and technology. Given this, its economy is supported by a number of thriving industries, showcasing its potential for continuous growth
• Based on today’s requirements, it emphasizes sustainable and energy-efficient real estate developments to not only align with its long-term objectives but also attract environmentally conscious investors
• The demand for both affordable and luxury real estate is growing significantly in the city because an increasing number of professionals, families and high-net-worth-individuals from all over the world are moving to Dubai
• The development of projects such as the Burj Khalifa, Palm Jumeirah, Palm Jebel Ali and offerings of popular areas like Downtown Dubai and Dubai Marina also attract people from all over the world
• The city is incorporating technological advancement into the property sector to do wonders, develop futuristic real estate, deliver real value and stay ahead of the curve
• The demand for real estate is growing rapidly and also the prices of properties, producing higher returns and attracting more investors

What’s the Average ROI for Property Investment in Dubai?

The property market of Dubai, UAE is also known for offering high returns on investment. ROI in Dubai is even higher than in other popular cities of the world, including London, New York, Singapore, etc. The average return on investment in Dubai is 7.5%. It can increase or decrease based on the property type and its location. Investors can also generate even 11% ROI by investing in apartments and 4-6% ROI by investing in villas in Dubai. 

Rent vs Buy Analysis

Many people consider whether they should buy or rent a property in Dubai. The answer to this question is not one size fits all. It depends on a number of factors that vary from person to person. These factors include lifestyle preferences of individuals, long-term objectives, financial capabilities, etc. Dubai offers both renting and buying options. Based on your specific needs, objectives and resources, you can choose to buy or rent real estate in Dubai. Locals and foreigners are eligible to choose one as per their own specific requirements.

Both the rental and selling values of properties in Dubai are increasing gradually. Individuals who seek lower upfront costs, easier relocation and access to their desired amenities can consider renting properties. However, they must ensure that these payments will not build any equity in the property and also they will be unable to modify or renovate that property based on their own aspirations.

Investors who aim to enjoy property ownership in Dubai and generate profits out of their investments should go for property purchases in Dubai. However, they will have to pay extensive upfront costs to purchase a property. Furthermore, some investors may also have to secure a mortgage in order to make a real estate investment. 

Conclusion:

Considering the available data from the last 10 years, Dubai’s real estate market has shown significant growth and expansion. The property market is continuously expanding in Dubai, creating more investment opportunities for both local and foreign investors. Given the city’s growth in the last couple of years, its emphasis on innovative and sustainable development, the government’s policies, high ROI, affordable and luxury real estate and potential to facilitate investors from various backgrounds indicate that the property sector of Dubai will also grow significantly in 2025.

Maximize Your Returns With Our Expert Real Estate Investment Assistance In Dubai:

Kelt and Co Realty is a Dubai-based real estate agency. This property company strives to facilitate investors from all over the world by helping them find the most suitable and viable investment options. Its professional team of real estate experts is 24/7 there to facilitate expert and novice investors. No matter whether you are looking for residential or commercial investment options, we can find the most viable option based on your specific preferences.