Dubai’s real estate market is expected to stabilise in 2025, with rent increases remaining steady, but slowing down in comparison to 2024. This trend is attributed to an abundant supply of over 72,300 new residential properties this year, an increase of 171 per cent to the previous year.
Areas like Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City) and Business Bay remain the prime residential locations with high demand from both, investors and end-users’ residents.
Moreover, to avoid overheating, bring stability to the real estate market and align it with international standards, the UAE banks have been asked to finance for mortgages only the value of the property, but not a 4% Dubai Land Department (DLD) property transfer fee and a 2% brokerage fee. Banks in most mature real estate markets, like the UK and USA, typically don’t fund these fees and only mortgage fixed assets.
Overall, Dubai’s real estate market remains resilient in 2025, with strong demand expected to continue. The sector will benefit from good market fundamentals, strategic investments in infrastructure and ongoing UAE economic growth, reinforcing Dubai‘s position as a premier global real estate hub.
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