Dubai is set to welcome more skyscrapers and new residential communities this year as developers continue to invest in one of the world’s biggest real estate booms, Bloomberg reported. Developers announce new projects every week and say homes are selling within hours or days, but some major companies, such as Emaar Properties, are starting to be more cautious about pricing.
Bloomberg quoted Mohamed Alabbar, founder of Emaar Properties, as saying in December that the outlook for the real estate market remains positive, noting that Dubai will continue to attract new investors, but he warned against raising prices excessively, as this could “kill the golden goose,” as he put it. He added: “There is a positive feeling for business, especially with Donald Trump returning to the White House.”
According to Knight Frank, nearly a fifth of residential properties in Dubai are valued at more than $1 million, and residential property prices are expected to rise 8% by 2025, compared with a 20% increase the previous year. The influx of new residents, including wealthy investors, crypto millionaires and Indian investors looking for second homes, has helped drive demand in the market, with Dubai’s population set to rise to 3.8 million in 2024, up from 3.66 million in 2023.
Prices for Dubai’s luxury properties are expected to rise another 5% this year, outperforming London (2%) and New York (3%). Some developers are still benefiting from the high demand, with Soho, for example, selling 84 of the 110 apartments in one of its towers.
Samana Properties has been exceptional in 2024, posting record monthly sales in September and is one of the largest developers offering residential units priced below Dh1 million. In 2024, Dubai’s real estate developers launched a record 588 new projects, with nearly 140,000 residential units under construction or announced, but the biggest challenge lies in the execution of these projects.
Alabbar explained that Emaar’s real estate sales increased by 70% in 2024 compared to the previous year, noting that this large activity represents a burden on contractors, suppliers and engineers.
Emaar is among the best measures of market health, and its profits in 2025 are likely to reach 13 billion dirhams, with the completion of many projects under construction, according to analyst estimates compiled by Bloomberg, which represents a strong increase from profits of 3.8 billion dirhams in 2021. According to Bloomberg research, Emaar is expected to complete between 6,000 and 7,000 residential properties in 2026 and 2027.