Supported by strong sales performance, rising property values, and the rapid absorption of new developments, Dubai’s real estate market is poised for optimistic growth in the 2024/2025 business season. According to analysts from Elite Merit Real Estate, the UAE's real estate market is expected to continue expanding, driven by strong demand across multiple sectors, the influx of new development projects, and the integration of advanced technologies. This growth is strongly supported by both domestic and international investors, reflecting the market's resilience and Dubai's strategic importance on the global stage.

Market Performance and Growth Trends

In 2024, Dubai's real estate market is expected to perform exceptionally well, with both sales volume and total transaction value reaching new highs. By July 2024, total sales in the market hit an astonishing AED 49.6 billion (approximately USD 13.5 billion), a 31.63% increase compared to the same period in 2023.

This surge in sales is primarily driven by strong demand for luxury properties, especially in popular areas like Palm Jumeirah. In just the first half of 2024, over 43,000 property transactions were recorded, with a total value of AED 122.9 billion, a 30% increase compared to the previous year. One of the key factors behind this growth is the rapid absorption of new developments, with 80% of units launched since 2022 already sold.

Surge in Supply and Its Impact

In the coming quarters, Dubai’s real estate supply is expected to increase significantly. By 2025, supply is projected to reach approximately 41,000 units, and by 2026, it may rise to 42,000 units, an 80% increase compared to the estimated 27,000 units in 2024.

While this influx of supply presents ample opportunities for buyers and investors, there is also a risk of oversupply, which could result in price stabilization or slight declines in some areas. However, strong investor confidence and well-planned urban strategies are expected to absorb most of the new supply.

Investment Opportunities and Timing

For investors, the period of 2024/2025 is a key window to seize opportunities and maximize returns. The luxury residential market remains strong, with prime locations such as Palm Jumeirah and Downtown Dubai continuing to attract high-net-worth individuals.

Moreover, growing interest in the mid-range and affordable housing markets is also noticeable, particularly in high-rental yield areas such as Dubai Silicon Oasis and Jumeirah Village Circle.

Technological Integration and Real Estate Tech Development

Dubai's real estate market is also undergoing a major transformation driven by technological advancements. The integration of Artificial Intelligence (AI) and digital platforms is revolutionizing property marketing and sales. Tools like virtual tours, 3D floor plans, and AI-powered market analysis are becoming industry standards, increasing transparency and making the home-buying process more convenient and efficient.

The rise of real estate tech solutions is expected to continue well into 2024 and beyond, playing a crucial role in how developers and investors interact with the market. This trend not only reflects local developments but also aligns with the global shift toward technology-enabled real estate practices.

Market Challenges and Long-Term Outlook

Although the outlook for Dubai’s real estate market remains optimistic, there are challenges. The risk of oversupply could exert downward pressure on rental prices in certain areas in the short term. Furthermore, the increasing scarcity of high-quality land resources will require the market to adopt more sustainable growth strategies in the coming years.

However, as these challenges are addressed, Dubai’s real estate market is likely to shift toward a more sustainable growth model. As the market matures, Dubai will remain one of the top destinations for global investors.