Dubai Real Estate Outlook 2025: Optimism Remains Strong Despite Off-Plan Delays

Dubai Real Estate Outlook 2025: Optimism Remains Strong Despite Off-Plan Delays

Dubai’s property market continues to show resilience in 2025, with demand for off-plan projects remaining robust despite growing concerns about construction delays.

Market Resilience Amid Shifting Trends

According to Cavendish Maxwell’s latest report, residential sales in Dubai stayed steady during the first half of 2025, although off-plan sales saw a slight decline compared to the industry boom at the end of last year. The dip was largely attributed to seasonality and fewer new project launches.

Even so, off-plan transactions continue to dominate, making up 70.2% of total residential sales in H1 2025. Apartments led the market with 76.7% of sales, though townhouses and villas are gaining traction as families and investors look for larger, more flexible living options.

Why Delays Happen – and Who’s Affected

Experts agree that while delays are common in real estate, the risks vary depending on the developer.

Established developers like Emaar typically deliver on time, supported by strong cash flow from milestone-based payment plans.

Smaller or newer developers, especially those offering flexible post-handover plans, face higher risks of delays due to stretched resources and rapid expansion.

Delays are often linked to supply chain bottlenecks, contractor shortages, permitting issues, or resource allocation—not deliberate attempts to manipulate pricing.

Matthew Green, Head of Research at CBRE MENA, highlighted that while delivery pace has slowed for some projects, Dubai’s pipeline remains massive, with 40,000 units expected in 2025 and 60,000 in 2026, followed by even higher completions through 2029.

Impact on the Market

Delays affect not just buyers but the entire market:

Reduced buyer confidence

Increased holding costs for investors

Shift in demand towards ready properties

Potential for tighter regulations

Still, the broader outlook remains optimistic. Dubai’s global reputation, investor-friendly ecosystem, and strong demand from both local and international buyers continue to fuel long-term growth.

Advice for Investors

Property experts recommend buyers be more selective with off-plan investments in 2025.

Stick to established communities like Dubai Hills Estate, Arabian Ranches, or Business Bay.

Focus on trusted developers with proven delivery records.

For those with higher budgets, townhouses and villas offer stronger resale potential than apartments due to lower supply.

Jonathan Coates, a Dubai-based agent, summed it up: “Four or five years ago, any off-plan launch was a safe bet. Now, with so many launches and deliveries, buyers need to be cautious and strategic.”

The Bottom Line

Dubai’s property market is entering a new phase. While delays may test buyer confidence, the sheer scale of planned developments, strong investor appetite, and the city’s global positioning ensure that the outlook remains optimistic.

For investors, the key is choosing wisely—prioritizing quality developers, strategic locations, and property types with limited supply.