According to the annual Deloitte Real Estate Predictions report, Dubai’s residential property market is set to deliver an impressive 20% growth in sales prices and a 19% increase in rental rates in 2024. The emirate has cemented its reputation as a safe haven for investors, supported by 5% population growth, record residential transaction volumes and robust economic growth. Villas continue to see higher price growth rates than apartments, while rents are growing steadily across all segments. An influx of new supply in late 2025 is expected to stabilise price growth, but is unlikely to significantly impact overall market dynamics.
Despite global economic uncertainty, Dubai’s office sector is showing resilience, with rents growing 17% year-on-year, reflecting strong demand from multinationals for premium office space. The retail sector remains a key growth driver, with overall retail spend in Dubai forecast to increase by 6% between 2025 and 2027. The hospitality sector has also reached new heights, with average hotel occupancy rates at 78% in 2024. Oliver Morgan, Partner, Deloitte Middle East, highlighted that Dubai’s real estate sector continues to thrive, driven by strong investor confidence, a diversified economy, and a strategic vision for the city’s long-term development, underpinned by a robust master plan, as well as strong economic fundamentals, attractive lifestyle offerings, and progressive policies.
Dubai is experiencing a real estate boom, fueled by a steady influx of expatriates and tourists, as well as ambitious infrastructure projects, positioning it as one of the most dynamic markets in the world. In the residential sector, average sales prices soared by 20% in 2024 to reach AED 1,597 per square foot, and transaction volumes reached record highs, with 44% coming from the resale market.
Affordable, family-friendly villas and townhouses are in particular demand. Robust demand has driven gross rental yields up to 6.7%, with Dubailand, Meydan and International City seeing the strongest rental growth. The hospitality sector is also thriving, with Dubai set to welcome 18.7 million guests in 2024 and an average hotel occupancy rate of 78%. The growth in revenue per available room (RevPAR) is driven by successful global campaigns and Dubai’s positioning as a leading luxury and business travel destination.
The office market is also growing rapidly, with strong demand for Grade A office space and rental growth of 12%, reflecting Dubai’s appeal to global financial and corporate firms. Despite regional competition from Abu Dhabi and Riyadh, Dubai’s pro-business and growth-enhancing policies continue to attract corporate relocations and expansions. In the retail space, retail real estate is enjoying growing consumer demand, fueled by an influx of new residents and tourists. Total sales are projected to increase by 6% between 2025 and 2027. The rise of e-commerce is transforming the retail landscape, forcing brands to adopt hybrid strategies that combine traditional stores with digital experiences.
The Dubai Master Plan 2040 emphasizes the expansion of community-based retail hubs, improving accessibility and convenience for residents. Dubai’s strategic retail initiatives, coupled with a focus on technological innovation and sustainability, are transforming the retail experience across the city.
In the industrial and logistics sector, Dubai’s industrial real estate market continues to expand, fueled by demand from manufacturing, logistics, and e-commerce. The highest rental rates are seen in industrial zones in the south of Dubai, such as JAFZA, Dubai South, and DIP. In particular, warehouse rental rates in JAFZA have increased by 28% year-on-year. The UAE’s import and export growth of 8.4% and 6.6% respectively in 2024 confirms the emirate’s status as a key trade and logistics hub.
Overall, Dubai’s real estate market is set for robust growth in 2025, supported by ambitious government initiatives, infrastructure projects, and growing foreign direct investment. The residential, commercial, and hospitality markets are expected to continue their upward trajectory, with some segments moderately stabilizing due to increased supply. As Dubai moves towards its Master Plan 2040, the city's focus on sustainable urban development, transport infrastructure and smart city initiatives is expected to increase its appeal to both investors and residents.
