Dubai realty pivots to long-term stability as market dynamics shifts
After a remarkable surge that saw residential property prices climb by approximately 60 per cent from 2022 to early 2025, driven by strong international demand, the market is now transitioning towards equilibrium.
This shift, as outlined by Asico, a leading Dubai-based real estate brokerage and developer, reflects a healthy evolution, offering investors a more predictable and strategic environment.
As of January 2025, the average price per square foot in Dubai's residential market stood at Dh1,484, marking a modest 0.57 per cent month-on-month decline. This subtle dip indicates a cooling from the frenetic price escalations of recent years, suggesting a market recalibrating for long-term stability. Despite this adjustment, transaction activity remains vigorous. In February 2025, Dubai recorded a 32 per cent increase in transaction volume and a 37 per cent rise in value compared to February 2024, totalling over Dh50 billion. This resilience underscores the emirate's enduring appeal as a global real estate hub.
A notable trend reshaping the market is the growing demand for mid-market and affordable housing. In 2024, two out of five ready home sales were valued at less than Dh1 million, a clear departure from the dominance of luxury properties. This broadening appeal reflects a more inclusive market, catering to a diverse buyer base and fostering sustainable growth. High-net-worth individuals continue to gravitate towards premium developments in areas like Palm Jumeirah and Downtown Dubai, where properties often exceed Dh5 million, but the rise of mid-tier options signals a market maturing beyond speculative frenzy.
The off-plan segment remains a cornerstone of Dubai's real estate dynamism, with a 38 per cent increase in transaction volume and a 60 per cent surge in value year-over-year in February 2025. Prime locations such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills lead this charge, attracting investors with their blend of modern infrastructure and strategic positioning. Off-plan properties, often priced 10-20 per cent below ready homes, continue to entice buyers seeking capital appreciation and rental yields, which average 6-8 per cent annually in key areas, according to industry data.
On the supply side, developers are proactively addressing demand. In response to robust market activity, construction schedules are being accelerated, with handovers brought forward by three to six months. This agility aims to prevent potential shortages and maintain market balance.
However, ratings agency Fitch has cautioned of an impending price correction, projecting a double-digit decline in the second half of 2025 and into 2026. This forecast aligns with a planned delivery of 210,000 units in 2025 and 2026, nearly double the volume of the previous three years. Fitch estimates this supply surge could depress prices by up to 15 per cent, a sharp pivot from the post-pandemic boom.
Wail Abualhamail, director of Real Estate at Asico, views this stabilisation as a positive development. 'The current phase reflects a maturing market, shifting from speculative buying to strategic, long-term investments,' he said. 'This evolution signals investor confidence, enhanced regulation, and a sustainable future for Dubai's real estate sector.'
Property market experts said the stabilisation marks a new chapter for Dubai's real estate sector, one defined by resilience, diversity, and strategic growth. 'As the market matures, it continues to affirm its position as a global leader, offering investors a stable yet dynamic platform for long-term success,' a spokesman of a Dubai realty brokerage firm said.
Asico's insights highlight a market where quality, thoughtful planning, and prime locations are becoming the primary drivers of returns, moving away from short-term speculation.
The Dubai government's strategic initiatives further bolster this outlook. The Dubai Economic Agenda (D33), targeting a doubling of the emirate's economy by 2033, emphasises real estate as a key growth driver. Policies like the Golden Visa programme, which grants long-term residency to property investors, and 100 per cent foreign ownership in select sectors have cemented Dubai's status as a global investment destination. In 2024, the emirate attracted over Dh 300 billion in real estate investments, with 40 per cent from foreign buyers, according to Dubai Land Department data.
As Dubai's property market stabilises, investors face a landscape ripe with opportunity. The focus on mid-market properties broadens investment avenues, while sustained demand underscores the sector's long-term strength. For buyers, this phase offers a chance to make informed decisions in a more predictable environment, prioritising quality and location over speculative gains.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
14 minutes ago
- Gulf Business
Dubai's JVC gets Dh150m boost from Nisus Finance and BNW Partnership
Image credit: Supplied photo Nisus Finance Investment Consultancy FZCO (NiFCO Dubai), a wholly owned subsidiary of This collaboration is poised to redefine the real estate experience in Dubai, offering enhanced opportunities for both investors and end-users. By combining Nisus Finance's expertise in capital deployment with BNW's robust market presence and project management capabilities, the partnership aims to set new standards in property development and sales. In line with this partnership, NiFCO Dubai recently launched the Nisus High Yield Growth Fund Closed-Ended IC, a Dubai International Financial Centre (DIFC) registered property fund. Incorporated under the laws of the DIFC and managed by Gateway Investment Management Services (DIFC) Limited, the fund serves as a vehicle for strategic real estate investment. Through its DIFC special purpose vehicle, NiFCO Holding 02 Ltd, the fund acquired Esplora, a premium residential building located in District 18 of Jumeirah Village Circle (JVC). Esplora is a 120,000 square foot development comprising 143 residential apartments and three retail units spread over G+3P+16 floors. The residential mix includes 48 studios, 63 one-bedroom apartments, and 32 two-bedroom apartments, designed to cater to a diverse range of residents. The building combines modern design with practical amenities, providing a high-quality living environment in a sought-after Dubai community. New joint venture to drive development, marketing and sales To maximise the potential of the acquired asset, BNW Developments and NiFCO Holding 02 Ltd have established a new company, BNW NiFCO Buying and Selling Real Estate LLC. This joint venture will oversee the development, marketing, and sales of the Esplora building, blending NiFCO's disciplined capital management with BNW's on-the-ground market expertise. Unlike traditional models where a developer simply sells off-plan projects, BNW plans to embed its core values into Esplora and future projects, ensuring elevated living standards and a seamless buyer experience. The partnership's combined strengths aim to accelerate sales velocity and deliver higher returns, benefiting both investors and homeowners. This approach promises to enhance the overall quality and readiness of homes available in the mid-income segment of Dubai's housing market. Consumer-first model for ready, quality homes in Dubai This partnership introduces a consumer-focused model designed to meet the growing demand for move-in-ready homes that offer immediate value and quality of life, particularly targeting middle-income families. The initiative moves away from the traditional off-plan property market, which is often marred by delays and uncertainties, to focus on completed, well-maintained residential assets. With additional assets worth approximately $200m currently under review for acquisition, Nisus Finance and BNW Developments plan to scale this model across Dubai and the broader UAE. This effort supports a larger real estate vision valued at around $1bn. By addressing the industry's challenge where only 45 per cent of projects are completed on time, the partnership ensures timely delivery, transparency, and robust secondary market activity. Amit Goenka, chairman and managing director of Nisus Finance Group, noted that the collaboration is 'creating an important roadmap to accelerate growth in the real estate sector by infusing capital, easing pressures on developers, and enabling faster sales and marketing.' Meanwhile, Ankur Aggarwal, founder and chairman of BNW Developments, praised the partnership's ability to 'drive strong uptake of projects' and looks forward to expanding the model in future developments. The collaboration notably enhances access to high-quality housing for mid-income families and provides investors with stable, income-generating properties that are ready to occupy. Combining institutional governance with local expertise, this partnership sets a new benchmark for trust, transparency, and impact-driven real estate development in the UAE.
Zawya
32 minutes ago
- Zawya
ADNOC L&S joint venture receives first Very Large Ethane Carrier in major fleet expansion
RELATED TOPICS MARITIME RELATED COMPANIES Marine Intl Hldg Aw Shipping ADNOC L&S ADNOC L&S Wanhua ADNOC L&S VLEC fleet to operate under 20-year charter contracts, generating approximately $4 billion in total revenue ADNOC L&S also receives Al Reef, third of six LNG Carriers built by Jiangnan Shipyard Shanghai, China/Abu Dhabi, UAE – ADNOC Logistics and Services plc (ADNOC L&S / the Company) (ADX symbol: ADNOCLS / ISIN: AEE01268A239), a global energy maritime logistics leader, today announced that AW Shipping, its joint venture with Wanhua Chemical Group, has taken delivery of Gas Yongjiang, the first of nine state-of-the-art Very Large Ethane Carriers (VLECs) from Jiangnan Shipyard in China. The vessel will commence operations under a 20-year time charter agreement. The remaining eight VLECs are scheduled for delivery between 2025 and 2027. Upon full deployment, the fleet is projected to generate approximately $4 billion (AED14.7 billion) in revenue through long-term contracts totaling 180 years. Once all nine vessels are delivered, AW Shipping will operate one of the world's largest VLEC fleets. Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, stated: "The delivery of Gas Yongjiang, the first VLEC to join the AW Shipping fleet, marks a significant milestone in our fleet expansion and entry into the global ethane shipping market. These nine vessels, purpose-built to transport ethane, a critical feedstock for the global petrochemical industry, will boost our capacity to meet growing demand, particularly in fast-growing Asian markets and reinforce our leadership in lower-carbon energy transport .' Kou Guangwu, President & CEO of Wanhua Chemical Group, said: 'Since the beginning of our collaborative journey in 2018, the partnership between Wanhua Chemical and ADNOC L&S has grown from raw material supply to encompass a broad spectrum of services, including shipping operations. Both companies are ready to further strengthen their cooperation for high-value chemical projects while fostering synergies that leverage resource integration and compatible strengths to achieve strategic win-win outcomes.' Lin Ou, Chairman of Jiangnan Shipyard, said: The naming of Gas Yongjiang and Al Reef reflects Jiangnan Shipyard's commitment to building intelligent, high-value, and energy-efficient vessels. Backed by the trust of ADNOC L&S and Wanhua Chemical, we continue to pursue joint innovation and customer-focused collaboration to unlock new possibilities in intelligent manufacturing.' Gas Yongjiang is one of the world's largest ethane carriers, with a capacity of 98,000 cubic meters. The vessel has optimized hull designs and integrated energy-saving technologies significantly reduce emissions, driving sustainable, value-driven growth. ADNOC L&S also received Al Reef, the third of six state-of-the-art LNG carriers from Jiangnan Shipyard. The arrival of the vessel underscores the company's strategy to modernize its gas fleet and strengthen its role in meeting global energy demand. The naming and delivery ceremony of both vessels was attended by senior executives from ADNOC L&S, Wanhua Chemical Group, and Jiangnan Shipyard. Sharifa Al Mulla, the ceremonial sponsor of both vessels, is the first Emirati female officer to serve aboard the ADNOC L&S commercial shipping fleet. Note: In 2024, AW Shipping awarded shipbuilding contracts to the Jiangnan Shipyard for the construction of the nine VLECs, priced at approximately $1.4 billion (AED5.1 billion) and a contract for four Very Large Ammonia Carriers (VLACs) priced at approximately $500 million (AED1.8 billion). The VLECs and VLACs will help meet the growing demand for ethane and ammonia to decarbonize industrial processes. About ADNOC Logistics & Services ADNOC Logistics & Services Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol ADNOCLS / ISIN AEE01268A239) is a global energy maritime logistics company based in Abu Dhabi. Through its three business units – Integrated Logistics, Shipping and Services – ADNOC L&S delivers energy products and solutions to more than 100 customers in over 50 countries. ADNOC L&S' key subsidiaries include Zakher Marine International Holdings (100% ownership), an Abu Dhabi-based owner and operator of offshore support vessels; and Navig8 (80% ownership), a global ship owner and commercial pools operator also offering bunkering and ship management solutions. To find out more, visit: For media enquiries, please contact: media@ For investors enquiries, please contact: IR@
UAE Moments
32 minutes ago
- UAE Moments
Dubai's Heritage Mosques to be Upgraded Under New Strategy
Dubai has launched a forward-looking initiative aimed at merging urban modernization with heritage preservation. A strategic cooperation agreement between Dubai Municipality and the Islamic Affairs and Charitable Activities Department (IACAD) will restore and maintain the emirate's heritage mosques, safeguarding their traditional character and authentic architectural elements. This move embodies Dubai's broader commitment to balancing rapid urban growth with cultural conservation. Under the agreement, Dubai Municipality will lead the restoration of these historical religious sites, ensuring their architectural identity remains intact. Meanwhile, IACAD will uphold operational standards, managing the appointment of imams, muezzins, and preachers, as well as overseeing daily cleaning and religious programming to preserve religious and cultural continuity. A key component of the strategy includes enhancing Eid prayer grounds. These open-air spaces will be upgraded to better accommodate Dubai's expanding urban landscape and population, with upgraded designs and improved readiness to host large-scale gatherings during significant religious observances. The agreement also extends to the improvement of funeral and cemetery services. Dubai Municipality will refine mortuary washing facilities and provide logistical enhancements, while IACAD will ensure that all Shariah-compliant and religious protocols are met, including staffing, training, licensing, and operational oversight. This initiative is part of Dubai's evolving strategy to enhance institutional collaboration and improve residents' quality of life. As expressed by Ahmad Bin Ghalita, Director-General of Dubai Municipality, the agreement reinforces efforts to 'provide high-quality services that benefit the entire community while preserving the authentic character of historic mosques and prayer sites.' Dubai Government's Media Office emphasized the partnership is aimed at 'blending urban progress with heritage conservation.' By forging a unified vision for mosque design and construction, this collaboration sets a blueprint for harmonizing modern infrastructure and deep-rooted cultural identity. The move sends a strong message: as Dubai continues to develop into a global urban hub, it remains deeply committed to preserving its rich religious and architectural heritage.
