The real estate market in Dubai has changed dramatically in the last few years. The most recent Deutsche Bank 2025 report states that since 2020, central Dubai real estate prices have grown at the fastest rate globally. This boom has improved Dubai’s standing on the international real estate map and established the city as one of the most alluring places to invest in the housing industry.
Price Increases and Dubai’s Position in the World
An apartment in central Dubai now costs USD 7,602 per square meter, a startling 122% increase over the previous five years, according to the Mapping the World’s Prices – 2025 report. Dubai has risen 15 spots to 37th place in the world rankings thanks to this increase. Dubai was able to fortify its upward trajectory through increasing demand and successful economic policies, whereas many major cities, including Hong Kong, experienced declines of 20% over the previous five years.
Comparing Global Cities
At an average of USD 25,946 per square meter, Hong Kong’s real estate market continues to be the most costly in the world.
Geneva, Seoul, Singapore, and Zurich are not far behind.
Regionally, the cost of real estate per square meter is USD 2,664 in Riyadh, USD 4,944 in Doha, USD 3,036 in Istanbul and USD 5,977 in Abu Dhabi (64% growth).
These numbers demonstrate that, despite its remarkable growth, Dubai is still able to outperform many European and Asian markets.
Attractive residency and immigration programs: Residency permits for remote workers, retirement residency options and the 10-year Golden Visa are examples of attractive immigration and residency programs.
Economic diversification: The UAE’s move away from reliance on oil and toward tourism, technology, and finance.
Growing demand from overseas: Foreign investors are looking for lucrative prospects in Dubai’s secure and expanding market.
Labor migration and population growth: The population and skilled worker boom have led to a genuine housing demand.
Prospects for the Future: Continued Growth or a Minor Correction?
A recent Fitch Ratings report suggests that the introduction of several new projects could cause a slight correction in Dubai’s real estate market in the second half of 2025, with price reductions of between 10% and 15% possible. Experts predict that this shift will only last a short while because Dubai’s real estate outlook will remain stable and positive due to solid fundamentals like growing demand, a maturing market structure and a growing population.
Dubai’s Rental Market Is One of the Most Expensive in the World
The rental market has expanded in tandem with real estate purchases:
Central Dubai now ranks 10th in the world with monthly rents for three-bedroom apartments at USD 4,589, up 49% in just five years.
London (USD 5,560), Singapore (USD 6,216), and New York (USD 8,388) are comparable.
Rents are much cheaper in Abu Dhabi (USD 3,052), Doha (USD 2,946), and Riyadh (USD 2,047).
With an average monthly rent of USD 2,401, Dubai is ranked eighth in the world for one-bedroom central apartments.
Quality of Life and Economic Indicators
The affordability and lifestyle of Dubai and other regional capitals have also grown in popularity:
Purchasing power: When it comes to housing affordability in relation to income, Riyadh, Doha, and Dubai rank in the top 10 cities worldwide.
Quality of life: In the world, Abu Dhabi is ranked 18th, Dubai 19th, Doha 23rd, and Riyadh 31st.
Income: Dubai’s average net monthly salary is USD 4,064, which represents a 35.7% increase over the previous five years and ranks 15th globally.
Additional Insights
Abu Dhabi is one of the top five most costly cities in the world to buy a car.
Fuel prices in Dubai, Doha, and Riyadh are among the lowest in the world.
Monthly gym memberships in Dubai cost USD 86, while those in Doha and Riyadh cost USD 119 and USD 106, respectively.
Abu Dhabi has some of the priciest internet in the world.
Dubai’s iPhone prices are about average for the world; they’re less expensive than in Europe but more expensive than in the US and South Korea.
Conclusion
Dubai’s real estate market has grown by an astounding 122% in the last five years, shattering both regional and international records. Despite the possibility of a mild correction in 2025 due to new supply, sustained demand government immigration policies, economic growth, and Dubai’s growing international standing make it one of the safest and most lucrative real estate investment markets globally.
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In addition to being a safe financial move, investing AED 2 million in Dubai real estate also enables you to apply for the UAE 10-year Golden Visa. This option is even more alluring because it provides access to one of the most vibrant markets in the area, long-term residency, and financial stability. However, picking the […]
