Outlook for Property Prices and Rentals in Dubai

Property prices and rentals in Dubai are expected to continue rising until 2025 due to a population growth that is outpacing the supply of new properties. The UAE's removal from the FATF Grey List has also contributed to increased investor confidence, further fueling the demand.

The real estate industry is forecasting a three-year rally, with the luxury segment expected to lead the charge. A lack of ready-to-move-in homes has been a key factor, as the population grew by 26,000 in the first three months of 2024, while only around 6,500 new homes were handed over. This has resulted in a 22% year-on-year increase in rental prices.

The strong demand is expected to persist throughout 2024 and into 2025, with the volume of new supply not expected to catch up until 2026 and 2027. Developers have been rushing to launch new projects in both the affordable and ultra-luxury segments to cater to the growing demand. The first quarter of 2024 saw a record 34,000 transactions, a 20% increase compared to the same period last year, with off-plan properties accounting for 58% of all sales.