Supply Meets Demand: Dubai’s Real Estate Growth Story Continues in 2025

The first half of 2025 was a successful period of the development of the real-estate sector in Dubai since 24 projects with a total value of AED4.5 billion got completed, which further proved the emirate a highly dynamic and resilient property market.
Dubai statistics published by the Dubai Land Department indicate that these projects contributed a total of 90,337 residential units (apartment, villas, and townhouse) in the market by the end of June 2025, both through existing master-planned communities and upcoming corridors.

Although the inventory significantly changed as the level of supply grew, the market did not lose its balance, and the price on rent rose by 5 percent in the first half of 2025. This growth has been supported by higher occupancy rates, faster corporate relocation and continued population growth.

At the same time, the favourable financing structures, attractive payment plans, and pro-investor legislation, and strong infra and transparency in laws and regulations are abetting the continued healthy demand in the sales segment.

Analysis shows that the demand is fairly balanced and that strong absorption has been seen in popular districts like Dubai Hills Estate, JVC, Business Bay, and some areas of Dubai South. Furthermore, off-plan sales attractively continue to be made and foreign investors are also becoming more attracted to higher yield opportunities and long term appreciation.

To conclude, the Dubai real estate sector has proven the ability to provide large amounts of housing with healthy demand maintained in a regulated market environment, with developers focused on maintaining proper quality levels and delivery on a timely basis.

Following the strength of the first half of 2025, the second half of that year will see a slew of high-profile launches and handovers in the residential, commercial and mixed-use markets. It has been projected that the stability of demand can be supported by an increase in the number of expatriates and an increase in the foreign direct investment, the continued growth of the tourism and business environment in Dubai.

The analysts predict that the pressure on rentals will remain strong in mid-market and premium sites because end-users prefer well-connected, amenity-rich neighbourhoods.
To sum up, the real estate market in Dubai has remained exemplary in terms of resilience, scalability, and long-term investor attractiveness. The fact that a sum of AED4.5 billion worth of projects and more than 90,000 new units were delivered within only six months points to the trust of developers and speaks of an establishment maturing towards sustainable growth in the coming years.

Source – https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-24-projects-worth-aed4-5bn-completed-in-first-half-of-2025

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