Slowdown in Dubai? Property data from 2025 proves analysts wrong
Dubai’s red-hot property market has proved analysts and investors wrong, defying expectations of a slowdown with 20 per cent year-on-year growth in 2025.Industry executives stressed that the 2025 performance proved that growth is “not speculative” but supported by population inflows, long-term residency initiatives, infrastructure development, and strong economic fundamentals.In fact, some senior level professionals are even more sanguine about Dubai’s property market for 2026 on the sustained demand due to growth population, continued inflow of millionaires, and more affordable projects hitting the market.Stay up to date with the latest news. Follow KT on WhatsApp Channels.In 2024, global ratings agency Fitch projected that Dubai property prices could fall up to 15 per cent across 2025 amid an anticipated supply surge.The latest Dubai data showed Dubai’s real estate sector recorded over 270,000 transactions worth Dh917 billion in 2025, up 20 per cent year-on-year.The results also confirm that Dubai’s real estate market is steadily progressing toward achieving the objectives of the Dubai Real Estate Sector Strategy 2033, which seeks to raise transaction volume by 70 per cent to reach Dh1 trillion.Real estate investments in 2025 exceeded Dh680 billion across 258,600 deals, up 29 per cent in value and 20 per cent in number. The investor base continued to expand, reaching around 193.1 thousand, an increase of 24 per cent, including 129,600 new investors, representing 23 per cent growth. Resident investors accounted for 56.6 per cent of the total.‘Market not speculative’“A year on, Dubai’s real estate market has defied the forecasted slowdown, demonstrating strong transaction growth across all major sectors according to the Dubai Land Department figures,” according to Allsopp & Allsopp.The average pricing data confirmed this trend, with Dubai Land Department (DLD) reporting price growth of around 7 per cent in 2025, while internal Allsopp & Allsopp figures showed an even stronger average sales price increase of nearly 33 per cent, which directly correlates to people purchasing higher value properties, in turn driving long-term confidence in the market.“All of the key metrics, transaction volume, pricing, and average prices show growth. The narrative of a slowdown simply doesn’t align with the actual data,” said Lewis Allsopp, chairman of Allsopp & Allsopp.Lewis Allsopp, chairman of Allsopp & AllsoppHumaira Vaqqas, senior consultant at Range International Properties, said Dubai’s property market performance in 2025 has been exceptionally strong and well-balanced.“The record transaction volumes and value growth demonstrate sustained end-user demand alongside institutional and international investor confidence. What stands out is that growth is not speculative; it is supported by population inflows, long-term residency initiatives, infrastructure development, and strong economic fundamentals. The market has evolved into a more transparent and regulated ecosystem, which has helped maintain momentum while avoiding extreme volatility,” she added.Humaira Vaqqas, senior consultant at Range International PropertiesWhat does it mean for investors?Importantly, Vaqqas noted, that rising transaction numbers indicate deep liquidity and a healthy absorption rate across multiple segments.“For investors, this translates into stronger capital appreciation potential, improved exit options, and attractive rental yields driven by continued demand. For end-users and buyers, it reflects confidence in long-term ownership, but also highlights the importance of early entry and informed decision-making, as prices in prime and well-connected communities are becoming increasingly competitive,” added Vaqqas.Stronger performance in 2026Humairah Vaqqas believes that the strong performance of 2025 will influence investor decisions in 2026 and beyond, attracting more players.“The market’s performance in 2025 sets a strong precedent for the years ahead. Investors are likely to adopt a longer-term, portfolio-driven approach, focusing on quality assets, branded residences, and communities aligned with Dubai’s 2040 Urban Master Plan. We can also expect increased interest from institutional investors and high-net-worth individuals who now view Dubai as a stable, global real estate hub rather than a cyclical opportunity. This will further reinforce sustainable growth beyond 2026,” she added.Allsopp & Allsopp added that 2025 was Dubai’s strongest year yet, and all indicators suggest that 2026 has the potential to be even better.“We’re seeing sustained population growth, continued high-net-worth migration, and rising demand from established families, all of which are fundamentals that underpin long-term market strength rather than short-term speculation,” added Lewis Allsopp.As worldwide interest in Dubai properties continues to rise, the increase in wealth migration to the UAE continues to grow; the evidence suggests Dubai’s residential market is ente
Dubai’s red-hot property market has proved analysts and investors wrong, defying expectations of a slowdown with 20 per cent year-on-year growth in 2025.
Industry executives stressed that the 2025 performance proved that growth is “not speculative” but supported by population inflows, long-term residency initiatives, infrastructure development, and strong economic fundamentals.
In fact, some senior level professionals are even more sanguine about Dubai’s property market for 2026 on the sustained demand due to growth population, continued inflow of millionaires, and more affordable projects hitting the market.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
In 2024, global ratings agency Fitch projected that Dubai property prices could fall up to 15 per cent across 2025 amid an anticipated supply surge.
The latest Dubai data showed Dubai’s real estate sector recorded over 270,000 transactions worth Dh917 billion in 2025, up 20 per cent year-on-year.
The results also confirm that Dubai’s real estate market is steadily progressing toward achieving the objectives of the Dubai Real Estate Sector Strategy 2033, which seeks to raise transaction volume by 70 per cent to reach Dh1 trillion.
Real estate investments in 2025 exceeded Dh680 billion across 258,600 deals, up 29 per cent in value and 20 per cent in number. The investor base continued to expand, reaching around 193.1 thousand, an increase of 24 per cent, including 129,600 new investors, representing 23 per cent growth. Resident investors accounted for 56.6 per cent of the total.
‘Market not speculative’
“A year on, Dubai’s real estate market has defied the forecasted slowdown, demonstrating strong transaction growth across all major sectors according to the Dubai Land Department figures,” according to Allsopp & Allsopp.
The average pricing data confirmed this trend, with Dubai Land Department (DLD) reporting price growth of around 7 per cent in 2025, while internal Allsopp & Allsopp figures showed an even stronger average sales price increase of nearly 33 per cent, which directly correlates to people purchasing higher value properties, in turn driving long-term confidence in the market.
“All of the key metrics, transaction volume, pricing, and average prices show growth. The narrative of a slowdown simply doesn’t align with the actual data,” said Lewis Allsopp, chairman of Allsopp & Allsopp. Lewis Allsopp, chairman of Allsopp & Allsopp
Humaira Vaqqas, senior consultant at Range International Properties, said Dubai’s property market performance in 2025 has been exceptionally strong and well-balanced.
“The record transaction volumes and value growth demonstrate sustained end-user demand alongside institutional and international investor confidence. What stands out is that growth is not speculative; it is supported by population inflows, long-term residency initiatives, infrastructure development, and strong economic fundamentals. The market has evolved into a more transparent and regulated ecosystem, which has helped maintain momentum while avoiding extreme volatility,” she added. Humaira Vaqqas, senior consultant at Range International Properties
What does it mean for investors?
Importantly, Vaqqas noted, that rising transaction numbers indicate deep liquidity and a healthy absorption rate across multiple segments.
“For investors, this translates into stronger capital appreciation potential, improved exit options, and attractive rental yields driven by continued demand. For end-users and buyers, it reflects confidence in long-term ownership, but also highlights the importance of early entry and informed decision-making, as prices in prime and well-connected communities are becoming increasingly competitive,” added Vaqqas.
Stronger performance in 2026
Humairah Vaqqas believes that the strong performance of 2025 will influence investor decisions in 2026 and beyond, attracting more players.
“The market’s performance in 2025 sets a strong precedent for the years ahead. Investors are likely to adopt a longer-term, portfolio-driven approach, focusing on quality assets, branded residences, and communities aligned with Dubai’s 2040 Urban Master Plan. We can also expect increased interest from institutional investors and high-net-worth individuals who now view Dubai as a stable, global real estate hub rather than a cyclical opportunity. This will further reinforce sustainable growth beyond 2026,” she added.
Allsopp & Allsopp added that 2025 was Dubai’s strongest year yet, and all indicators suggest that 2026 has the potential to be even better.
“We’re seeing sustained population growth, continued high-net-worth migration, and rising demand from established families, all of which are fundamentals that underpin long-term market strength rather than short-term speculation,” added Lewis Allsopp.
As worldwide interest in Dubai properties continues to rise, the increase in wealth migration to the UAE continues to grow; the evidence suggests Dubai’s residential market is entering the next phase from a position of strength, not decline, concluded Allsopp.
What's Your Reaction?
