Dubai Real Estate Prices and Rents Projected to Keep Rising in the Coming Years

Property prices and rental values of real estate in Dubai are expected to rise in upcoming years mainly because the demand for real estate continuously increases in Dubai. The number of prospective buyers and tenants is much higher than the number of available units, leading to an increase in property prices.

A recent study highlights that the number of homes in 2024 was the lowest in six years as only 27,000 units were delivered. On the contrary, the city observed a significant increase in its population as it grew by over 169,000 in 2024, reaching 3.825 million by the end of the same year.

The primary cause of property price increase in Dubai is the demand and supply factor because the demand for properties is constantly increasing with an increase in the population of the city. However, the rate of growth may be lower than in the last two years. The DLD has also shifted its policy, requiring buyers to pay their DLD fee upfront. This development may also affect property buyers. 

The data highlights that the average price of an apartment increased by 23.6% in the last year and the average value of villas grew by 31.6% in the same period. Furthermore, the rental value of apartments rose by 13 % and that of villas went up by 5.8%.

Though the demand, cost and rental value of properties for sale in Dubai are expected to rise in the next couple of years. However, several developments are to be completed in the next two to three years which may affect the value of properties.