The first half of 2024 saw more than 220,000 people relocating to Dubai, reinforcing the ongoing surge in demand for residential units across the real estate sector, said Amira Sajwani, managing director of DAMAC Properties.
“The real estate market in Dubai is experiencing exceptional momentum, with strong demand continuing from both investors and end-users,” she said on the sidelines of the launch of “Riverside Views,” the company’s first project for 2025.
Sajwani noted that Dubai has become a global attraction due to its strategic location between Europe and Asia, along with its investor-friendly policies.
Dubai’s population to reach 4 million in 2025
“The demand for real estate in the UAE is unmatched by other markets. Some of the projects launched by the company have achieved billions of dollars in sales within just a few hours,” she added.
She also pointed out that the investment value of the company’s new project in Miami exceeds $1 billion and is designed by Zaha Hadid Architects.
A recent report by fäm Properties revealed that, in 2025, Dubai’s population is expected to reach 4 million which will likely drive strong demand growth across all real estate segments.
Population growth rates have remained a positive factor for Dubai’s real estate sector, peaking in 2024 with a 4.66 percent increase, reflecting higher migration and economic activity. With projections estimating Dubai’s population to reach 7.8 million by 2040, the real estate market is gearing up to capitalize on sustained growth.
Real estate sector poised for growth in 2025
Dubai’s real estate sector will most likely maintain its upward trajectory in 2025, driven by strong investor confidence, expanding luxury offerings and surging residential demand. With a strong economic foundation, population growth and strategic government initiatives, Dubai continues to bolster its position as one of the world’s most attractive real estate investment destinations.
Last year, Dubai attracted 110,000 new investors to its real estate sector, achieving a remarkable 55 percent increase. This unprecedented achievement highlights the emirate’s leading role in creating a world-class investment ecosystem that attracts investors from around the globe and supports the sustainable growth of the real estate sector.
Further solidifying its position as a global hub for investment, Dubai’s real estate sector achieved exceptional milestones in 2024. The sector recorded 217,000 investments valued at AED526 billion, reflecting impressive growth rates of 38 and 27 percent in number and value respectively.
Dubai’s real estate sector recorded a total of 2.78 million transactions in 2024, the highest in its history. The record number of transactions, which include both real estate transactions and rental agreements, marks a 17 percent increase compared to 2023.
Real estate transactions alone totaled 226,000, with a combined value of AED761 billion, a remarkable 36 percent growth in volume and 20 percent growth in value year-on-year.
Read: DAMAC Properties launches Riverside Views, first development of 2025
Emerging investment opportunities in 2025
The real estate market’s stellar performance has cemented Dubai’s position as a global leader in real estate, offering some of the highest returns on investment globally. According to DXB Interact, investors earned AED100.5 billion ($27.36 billion) from the sector, highlighting Dubai’s appeal as a property investment hub driven by robust demand, innovative developments and government-backed incentives.
As Dubai’s property market continues to evolve, certain communities show strong growth potential, making them key areas for investment in 2025. These emerging hotspots highlight the demand for well-located, family-friendly, and high-yielding properties.
According to haus & haus, Victory Heights, with a 5.3 percent rental yield and a 23 percent rise in price per sq.ft, has become increasingly attractive to investors looking for long-term growth.
Meanwhile, Jumeirah Village Triangle (JVT), with a 40 percent increase in price per sq.ft and a 3.3 percent rental yield, signals growing interest, positioning it as a strong contender for future investments.
Dubai’s property market offers some of the highest returns on investment globally, making it the top choice among investors seeking to diversify their portfolios. Coupled with high economic growth and a stable political environment, Dubai’s investment yields will likely continue to attract investors, further supporting market growth.
