If you live in Dubai or are planning to buy a home here, you’re probably wondering: Will prices keep going up in 2025? Or is the market finally going to cool down?
Well, the latest industry reports are out and while everything still shows growth, it’s not as aggressive as previous years.
Here’s everything you need to know in simple terms.
The Dubai Property Market: Where We Stand Now
During the last couple of years, the real estate market in Dubai faced a drastic increase in prices of the properties available in the market. COVID-19 had completely reversed the effect, and the investors’ confidence went through the roof, as the villas, townhouses, and high-rise apartments all experienced a surge, particularly in the prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina.
However, this is now changing.
So, How Much Will Prices Increase in 2025?
Let’s break it down:
ValuStrat says Dubai is “potentially reaching the peak of its current cycle.” They expect price increases between 5% to 10% in 2025. Source: Khaleej Times report (June 2025)
Knight Frank, another global consultancy, expects an average price growth of 8%, with luxury homes rising at a slower pace of about 5%. In addition, Fitch Ratings believe prices may peak in 2025 and could drop by as much as 15%.
Which Properties Will Rise the Most?
| Property Type | Expected Trend in 2025 |
| Affordable apartments | Likely to rise 6–10% |
| Mid-tier homes | Stable to modest growth (~8%) |
| Luxury villas/homes | Slower rise (3–5%) |
| Ultra-high-end villas | May plateau or correct later |
The explanation behind the slowdown of villas is easy: they have already experienced enormous expansion during the last two years. Prices of some villas in Palm Jumeirah, to give an example, have quadrupled since 2020 to 2023.
Supply vs. Demand: What’s Driving the Market?
The population of Dubai is increasing, and in the light of the Golden Visa program, investors are constantly streaming. This has maintained the demand high.
However, today programmers are picking up the pace. In 2025, there are about 42,000 new homes which are anticipated to be handed over. Although this will assist in normalizing the demand, there is fear that the much supply will cause soft correction, at least in areas where there is oversupply.
Location Matters More Than Ever
The location factor is getting even more critical in 2025. Houses near Metro stations, the main roads, schools and business centres are probable to perform good as compared to those in the farthest suburbs.
Area of interests to watch out:
- Dubai Creek Harbour
- Business Bay
- Jumeirah Village Circle (JVC)
- Arjan
- Dubai Hills Estate
- Palm Jumeirah and Bluewaters for high-end
Important Information for Buyers & Investors
And here is what you have to remember, if you decide to invest in Dubai property in 2025:
- Moderate returns are expected in the past, prices will increase, but not as it was.
- The luxury market may cool off, at least the villas in particular, as the market normalizes.
- Apartments in developing communities are safer bets- These have prospects to develop.
- Off plan projects have flexible paying options- Suitable to long term investors.
- Watch the allocation- An excess of new supply might lower the prices towards the end of 2025 or 2026.
Before You Leave!
The property market in Dubai remains healthy, yet it is moving to a more stable phase. In fact, it is a positive indication since it implies that the market is becoming mature, sustainable, and less prone to bubbles.
Even in purchasing or planning an investment your first house should be purchased in 2025, as it is a good chance, but you need to be more selective and well-informed. Pay attention to location, quality, values in the long-term, and you will stay ahead of the curve.
