Are you ready for some exciting updates on UAE real estate news? We gathered data and expert insights to get a macroeconomic overview of the real estate market in the UAE. According to the UAE real estate market forecast 2025 the real estate market in UAE is showing great promise and is expected to continue its growth trajectory in 2025. Hence Let’s delve into the details of the dubai real estate market forecast and evaluate the factors that are contributing to the growth of the real estate landscape in UAE.

Market Value: 

The UAE real estate market is expected to reach a value of 2.6 Trillion by the end of 2024 and shows signs that this positive trend will continue in 2025 because the government of UAE is consistently focusing on building a non-oil economy driven by tourism, real estate, technology and so much more.

Dubai has transformed into a dynamic hub filled with innovation and technology, coupled with beautiful breathtaking sea views and a thousand different interactive and adventurous sights to see, dubai has so much to offer and can cater to the needs of every person. More expatriates settle in the UAE every year because of the safe and secure environment it offers along with convenience and exceptional amenities the country is the best place to live and work.

Luxury Property Investment:

The Demand for new types of Luxury properties like townhouses, ergonomic co-working spaces, smart and sustainable, and green buildings increased in the market due to the interest of High-worth individuals in luxury property investment. Dubai became a center of attention for foreign investors and has seen the sale of 105 luxury homes in the first quarter of 2024 alone. Whether you want a cozy home with lavish gardens or a sleek condominium you can find it in the UAE without any hassle.

Population & Tourism Growth:

Dubai’s population has constantly increased in the past few years and crossed 3.6 million in June 2023 with a year-to-year increase of 1.4% these figures show that the demand for residential and commercial real estate is going to increase. Moreover, if we look at the increase in tourist arrivals of past years which grew by 19.9% from January to November 2023 the increase in demand for real estate becomes more evident. Moreover, after the EXPO 2020, dubai has garnered more attention from people globally and is seeing a growth in the number of tourists visiting the country.

Economic Growth:

UAE has reached new heights in economic growth with a GDP of 3.2% amounting to 223.8 billion in the first half of 2023 and the expected GDP for this year is forecasted to be 5.7% by the Central Bank of the UAE due to the strong performance of oil and non-oil sectors. UAE is driving towards an exponential transformation by supporting new emerging technologies like AI and IoT and frequent inauguration of smart projects empowered with sustainable technologies the UAE is stepping towards a massive digital transformation which will only make the economy grow furthermore.

Residential Market:

The residential market has seen an upward trajectory with a significant 18% and 26% year-on-year increase in sales and rent prices. Moreover, the government introduced “Golden Visas” giving investors and property owners ten-year residency permits and many other benefits for staying in the UAE attracted foreign investors massively to invest in the country.

Read More: A Guide to Understanding Real Estate Market Cycles and Their Impact on Investment Strategies

Office & Retail Sectors:

The Retail Sales of Malls are expected to grow by 6% between 2025 to 2027. Dubai is also a hub of regional malls and as the retail sector strives to engage consumers in a variety of ways the demand for retail spaces is expected to grow. Even office rents have increased in 2024 where prime office rents increased by 7.6%, grade A office rents increased by 17.9%, Grade B office rents went up by 21.6% and Grade C office rents saw an increase of 16.8%.

The demand for offices and co-working spaces continues to grow as a broad range of sectors offering financial services, digital solutions, and asset management firms are actively expanding and growing and with this increasing demand and fewer quality spaces available, the increase in rental rates has become inevitable. Moreover, more than 7 million people are expected to work in the UAE in 2019 and the CAGR of the Co-working space market is expected to grow 7.46% from 2024 to 2029 increasing the demand for offices in the UAE.

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Industrial & Logistics:

The industrial and logistics sectors have also seen an increase in Warehouse rents driven by new manufacturing, Third-party Logistics, and e-commerce companies.

Conclusion:

On an ending note, these valuable insights suggest that the real sector in the UAE and Dubai is going to see further growth due to the constant increase and growth in population, tourism, and economic expansion in several industrial sectors. Hence, investors and stakeholders in the real estate market can expect a dynamic and potentially lucrative environment in the upcoming years. If you are interested in investing in Dubai or the UAE make sure to search and evaluate the best on and off-plan properties to redeem greater rewards in the long run.