Dubai’s real estate market continues to evolve rapidly, with a significant drop in available homes for sale, rising property prices, and a growing shift from rentals to ownership. According to real estate consultancy Knight Frank, the number of homes listed for sale in Dubai fell by 30% in 2024, with the prime market experiencing an even sharper decline of over 50%.
Why Are Fewer Homes Available?
A key factor behind this decline is the increasing number of end-users purchasing homes rather than speculative investors. With rental prices soaring, many Dubai residents are opting for homeownership to avoid rising costs.
• The prime real estate segment saw a 52% drop in listings, reflecting high demand for luxury properties.
• The ultra-luxury market ($10M+ homes) experienced a 40% decrease, with listings dropping from 4,119 to just 2,491 properties.
• The $25M+ segment saw an even steeper drop of 85%, as the influx of high-net-worth individuals (HNWIs) drove up demand.
Dubai’s Booming Luxury Property Market
Dubai’s reputation as a luxury real estate hub remains strong, with record-breaking transactions in 2024.
• $10M+ homes: 435 deals were recorded last year, with 153 transactions in Q4 alone—the highest ever for a single quarter.
• Price per square foot in prime areas: Reached AED 6,627 in Q4 2024, driven by limited supply and growing demand.
• Foreign investors and HNWIs: Dubai continues to attract ultra-wealthy buyers, reinforcing its status as a safe-haven market.
Shift from Rentals to Ownership
Dubai’s rental market saw continued growth in 2024, with apartment and villa rents rising by 2-3% in Q4. However, official data shows a 30% drop in rental renewals in February 2025, indicating that more tenants are becoming homeowners.
With Dubai’s population increasing by 27,000 residents in just the first two months of 2025, housing demand remains high. The shift from renting to buying is reducing available inventory, pushing prices higher.
What’s in the Pipeline? Upcoming Supply & Future Outlook
Despite high demand, a strong supply pipeline aims to stabilize Dubai’s real estate market in the coming years.
• 302,880 new homes are under construction, with 80% being apartments and the rest villas and branded residences.
• On average, 60,576 homes per year will be delivered over the next five years, higher than the long-term average of 36,000 homes annually.
• Jumeirah Village Circle (JVC) leads the supply pipeline, helping balance prices and ease rental pressures.
Although supply is increasing, historical trends show a 30% lag in project completions, meaning that the actual number of delivered homes may be lower than expected.
Conclusion: A Market Driven by Strong Fundamentals
Dubai’s real estate market remains resilient, driven by high demand from end-users, foreign investors, and luxury buyers. While a robust supply pipeline is in place, delays in project completions and ongoing demand may keep property prices elevated.
With its strategic regulatory initiatives, investor-friendly policies, and strong global appeal, Dubai continues to solidify its position as a top destination for real estate investment. Whether you’re looking to buy a home, invest in luxury property, or navigate the rental market, understanding these trends is key to making informed decisions.
