Real Estate

Deloitte, the leading global professional services firm, has unveiled its Dubai Real Estate Predictions 2025 report, highlighting continued strength in the emirate’s property market. The report reveals a 20% increase in residential sales prices and a 19% rise in rental rates in 2024, reinforcing Dubai’s position as a top investment destination amid geopolitical uncertainties.

Dubai's hospitality sector saw a 9% rise in overnight visitors, reaching 18.7 million in 2024, while hotel occupancy rates climbed to 78%. The office market remained robust, with rents increasing by 17% year-on-year, driven by demand from multinational firms. The retail sector also recorded a 6% projected growth in total retail expenditure between 2025 and 2027.

Oliver Morgan, Partner at Deloitte Middle East, commented: "Dubai’s real estate sector continues to thrive due to strong investor confidence, a diversified economy, and a strategic vision for long-term urban development. The emirate’s progressive policies, world-class infrastructure, and continued expatriate influx make it one of the most dynamic real estate markets globally."

Market Overview

Residential Market

• Sales prices increased by 20% in 2024, with average prices reaching AED 1,597 per sq. ft.
• 44% of total sales were in the secondary market, indicating strong resale activity.
• Gross rental yields rose to 6.7%, with rental spikes of 39%-46% in Dubailand, Meydan, and International City.

Hospitality Sector

• 18.7 million overnight visitors in 2024 (9% increase from 2023).
• Revenue Per Available Room (RevPAR) rose by 1%, fueled by luxury and business travel.
• New hospitality brands and tourism concepts are solidifying Dubai’s status as a global destination.

Office Market

• Demand for Grade A office spaces surged, with occupancy in premium towers like ICD Brookfield (DIFC) exceeding 95%.
• Office rents increased by 12%, reflecting continued corporate expansion.
• Dubai’s pro-business policies continue attracting multinational firms despite regional competition.

Retail & Industrial Sectors

• Retail spending projected to rise by 6% (2025-2027) as Dubai’s Urban Master Plan 2040 focuses on community-based retail hubs.
• Warehouse rental rates in JAFZA surged 28% year-on-year, driven by e-commerce and logistics demand.
• The UAE's import and export trade grew by 8.4% and 6.6%, respectively, in 2024.

Dubai’s real estate sector continues to evolve with sustainable, tech-driven developments, reinforcing its position as a global hub for investment, business, and tourism.

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