Growing Population, Rising Demand, and Increasing Dubai Property Prices
Dubai property prices are expected to continue their upward trend over the next two to three years, according to The National. Rental costs are also likely to rise as demand for housing surpasses the available supply in the emirate.
A report from ValuStrat management consultancy reveals that only 27,000 new homes were completed in 2024, marking the lowest number in six years.
Dubai’s population saw its highest growth in six years, increasing by over 169,000 in 2024 to reach 3.825 million by year-end.
Experts interviewed by The National attribute the rising property prices to supply and demand dynamics. One expert noted that while growth will persist in 2025, the pace will slow compared to 2023 and 2024.
A recent policy change impacting property buyers is that DLD fees must now be paid upfront instead of being included in mortgages as previously allowed.
According to The National, ValuStrat’s study also found that apartment prices increased by 23.6% in 2024, while villa prices rose by 31.6%. Rental costs followed suit, with apartment rents climbing 13% and villa rents rising by 5.8%.
With numerous apartment towers and residential projects set for completion over the next two to three years, rents and property prices are expected to stabilize by 2028.
