Dubai’s real estate market has entered a new phase, marking its first monthly price decline in over two years. In January 2025, average property prices dipped by 0.57%. This shift comes after a period of unprecedented growth, with prices surging in 2024. Despite this slight correction, the market remains robust, with January 2025 recording a sales volume of 14,413 transactions, albeit a 4.6% decrease from December 2024.
This price adjustment remains a positive sign for the market’s long-term health. For a market to grow sustainably, periods of consolidation are needed. This phase allows the market to recalibrate and align with underlying economic fundamentals, ensuring that the market does not enter a bubble phase.
Amidst this evolving landscape, Dubai continues to attract foreign investors, particularly from China and Russia, who are drawn to the city’s dynamic real estate sector. The market’s resilience is further evidenced by the launch of ambitious new projects. Palm Jebel Ali, set to be twice the size of Palm Jumeirah, is progressing rapidly with 80 new hotels and luxury properties planned. Other notable developments include the introduction of OMNIYAT’s bespoke service for ultra-high-net-worth individuals, allowing them to create unique, tailor-made properties.
The ongoing Ramadan period is anticipated to be a significant window of opportunity for property market investment. Historical data supports this outlook, with Dubai witnessing a 39% increase in property transactions during Ramadan 2024 compared to 2023, totaling 12,313 transactions worth AED 32.6 billion. In this regard, developer incentives during Ramadan could support overall deal volumes. As Dubai’s real estate market matures, it is transitioning towards a more sustainable trajectory, balancing rapid growth with long-term stability.
