Despite structural changes and global challenges, Dubai’s real estate market continues to perform better than anticipated in 2025. According to recent analyses, this market has entered a critical phase characterized by an increase in transactions, a decrease in supply, and a sharp increase in land prices. This phase offers both significant opportunities and heightened competition. In contrast to many markets around the world, Firas Al Msaddi, CEO of Fam Properties, claims that current trends show that demand is still remarkably strong, allowing Dubai’s market to grow without any signs of slowing down.
Based on data that has been published:
Al Msaddi emphasizes:
“Supply has become limited, but demand is increasing. This imbalance is what keeps prices stable and the market growing.”
The sharp rise in land prices in Dubai is one of the main causes of the reduction in supply. Al Msaddi claims that since 2020, land values have increased by 200% to 300%, making it harder for new developers to enter the market. Only businesses with powerful brands and significant financial resources are able to start successful projects in these circumstances. Major developers now control a greater portion of the market as a result.
The market in Dubai is not homogeneous; each region exhibits distinct behavior:
Village Circle of Jumeirah (JVC)
Ali Jebel
According to Al Msaddi:
“In places like Jebel Ali, infrastructure will be the primary growth driver.”
In most neighborhoods, rental rates are either rising or staying the same despite increased supply in certain districts. Only areas with excessive supply may see changes, and there are no indications of a general drop in rents.
Many construction companies have been drawn to Abu Dhabi due to the sharp increase in land prices in Dubai. For instance:
As stated by Al Msaddi:
“Developers and real estate investors have a historic opportunity in Abu Dhabi.”
In the cutthroat real estate market of today, well-known companies like:
maintain their position because of their solid reputations, widespread confidence, and quick project sales. New brands like Binghatti have grown significantly alongside them. However, the market has shifted even more toward established developers businesses that can manage risks and complete large-scale projects due to rising construction costs and skyrocketing land prices.
Dubai continues to be one of the most alluring and lucrative places to invest in the world, despite the fact that many real estate companies are growing into international markets like London.
Al Msaddi highlights:
“In terms of returns and growth speed, no international market can match Dubai today.”
Beyond monetary gains, a significant change in lifestyle is occurring. Nowadays, a lot of people choose Dubai as their long-term residence, making it more than just an investment destination. This change in perspective maintains demand and encourages ongoing market expansion.
Despite economic difficulties and sharply increasing land prices, Dubai’s real estate market is still among the most active in the region in 2025. Strong demand, decreased supply and an increase in off-plan and resale transactions have all contributed to the market’s continued growth. Districts like Jebel Ali offer more growth potential because of infrastructure development, while areas like JVC might see price corrections. Developers are also being drawn to Abu Dhabi by rising land prices. Overall, Dubai continues to be a dependable and lucrative location for real estate investment despite growing competition.
Source: https://www.khaleejtimes.com
