Deloitte released its annual report on the Dubai real estate sector forecast for 2025, noting the continued growth of the real estate market in the emirate, which has strengthened its position and a safe investment destination. This growth is due to a 5% increase in the population, along with the recording of residential real estate transactions and the remarkable economic expansion witnessed by the city.
The residential real estate market in Dubai recorded exceptional growth during 2024, with sales prices increasing by 20%, while rent values increased by 19%. Villa prices continued to outperform apartments, while rents across various sectors maintained a steady upward pace. The launch of new housing units later in 2025 is expected to contribute to price stability, but it is unlikely to limit the strong momentum in the sector.
Office Rentals
Dubai’s office sector has also shown remarkable flexibility despite global economic fluctuations, with rents rising by 17% year-on-year, reflecting the continued demand from multinational companies for premium office space. The retail sector remains a major driver of growth, with total retail spending in Dubai expected to rise by 6% between 2025 and 2027. The hospitality sector, in turn, recorded new growth levels, with average hotel occupancy rates reaching 78% in 2024.
The prosperity of the property
Oliver Morgan, Partner at Deloitte Middle East, said: “The real estate sector in Dubai continues to thrive, supported by strong investor confidence, the diversification of the economy, and a long-term development vision based on a well-made plan. These factors, along with the continuous flows of residents and tourists and major investments in infrastructure, reinforce Dubai’s position as one of the world’s most dynamic real estate markets.”
Residential Real Estate Sector
Dubai’s residential real estate market maintained its upward trajectory, with average sales prices rising by 20% in 2024 to reach AED 1,597 per square foot. The volume of sales transactions also rose in 2024 to record unprecedented levels, and the secondary market accounted for 44% of transactions. In parallel, the strong demand for villa complexes and townhouses with near-afford prices continues.
Rent Yield
Total rental yields rose to 6.7%, reflecting the continued demand for villas and apartments. The highest increases in rents were the share of Dubailand, Meydan and the global city, with annual increases ranging from 39% to 46%. Buyers who deal in cash continue to dominate the rental market as well as existing residents looking for villas and townhouses at affordable prices.
Hospitality Sector
Dubai’s tourism sector, in turn, witnessed more momentum, with hotels receiving 18.7 million visitors during 2024, an increase of 9% compared to the previous year. In addition, the average hotel occupancy rate increased to 78%.
Office Market
Demand for luxury office space increased in 2024, as luxury towers, such as ICD Brookfield in the DIFC, maintained occupancy rates above 95%, reflecting the continued interest of international financial companies. Demand for luxury office space remained high, leading to a 12% increase in rents in 2024. Despite the regional competition imposed by both Abu Dhabi and Riyadh, Dubai’s supportive business policies as well as its economic growth continue to encourage the transfer and expansion of corporate headquarters to the emirate.
Retail Sector
Retail properties continue to benefit from growth in consumer demand and the influx of new residents and tourists to the emirate, with total sales expected to increase by 6% between 2025 and 2027.The growth of e-commerce is also contributing to the reshaping of the retail real estate sector, as brands adopt hybrid digital and traditional strategies. Dubai Urban Plan 2040 emphasizes the importance of expanding community retail centers to facilitate access to anywhere and enhance levels of comfort. In addition, strategic retail initiatives in Dubai and the emirate’s focus on technological innovation and sustainability are transforming retail experiences in all areas of the city.
Industrial Real Estate
Dubai’s industrial real estate market continues to grow supported by growing demand from the manufacturing, logistics and e-commerce sectors. The Jebel Ali Free Zone (Jafza), Dubai South and Dubai Investments Park recorded the highest rental rates among industrial zones in southern Dubai, with warehouse rental prices in Jafza increasing by 28% year-on-year. For its part, the import and export trade in the UAE in 2024 witnessed growths of 8.4% and 6.6% respectively, which consolidated Dubai’s position as a major hub for trade and logistics.
A look at 2025
Dubai’s real estate sector is qualified to continue its sustainable growth supported by ambitious government initiatives, infrastructure projects, and growing foreign direct investment. Residential, commercial and hotel real estate markets are expected to maintain their upward trajectory, and some sectors will witness moderate stability thanks to increased supply. As the emirate progresses with the implementation of the Dubai Urban Plan 2040, its focus on sustainable urban development, transport infrastructure, and smart city initiatives are expected to enhance its attractiveness for investors and residents alike.