Dubai Property Market Set to Peak in 2025, High-End Villa Prices to Stabilise
The Dubai property market is approaching its peak, with prices expected to stabilise in certain segments in 2025. Real estate consultancy ValuStrat predicts that while the market will experience continued growth, the pace will slow compared to the rapid increases seen in 2024. A key trend to watch is the potential stabilisation of prices for larger villas in prime locations, particularly during the latter half of 2025.
ValuStrat’s annual report indicates that Dubai’s residential market will maintain an upward trajectory, fueled by economic growth, strong demand, and positive sentiment. However, price growth for high-end villas will slow, and capital values are projected to increase by 5-10% in 2025. This slowdown is attributed to a maturation of the market and the narrowing gap between supply and demand.
Luxury and off-plan properties continue to be in high demand, with many investors confident in the future of developments in Dubai. Off-plan sales surged by 76.4% in 2024 compared to the previous year, signaling sustained investor interest.
The demand for ready-to-move-in properties also grew, as rising rental costs and lower mortgage rates drove tenants to explore homeownership. This trend is expected to continue in 2025, with a notable shift towards affordable units under AED 1 million, particularly in the apartment sector. As a result, affordable housing is becoming increasingly popular, while the demand for villas is reaching price ceilings in certain communities.
The market is expected to see continued interest in both luxury and off-plan properties, with sustained investor confidence in Dubai’s real estate sector.
Source: Khaleej Times
