Dubai Home-Sales Surge Amid Record Population Growth: In-Depth Market Outlook
📈 Unprecedented Residential Demand
In 2024–25, Dubai’s residential property sales soared — concluding Q1 2025 with 42,274 transactions, a 23% year-on-year increase. Overall, property sales volume approached US $31 billion, underpinned by a 73,000-unit housing development pipeline planned for 2025.
Key Demand Drivers
- Population boom: Dubai’s population now surpasses 5 million, requiring an additional 300,000 homes by 2028.
- Economic & residency incentives: Tax-free policy and long‑term visas have attracted high-net-worth expatriates.
- Luxury villa deficit: Despite 9,000 villas delivered in 2024 and another 19,700 scheduled for 2025, ultra‑luxury demand still outpaces supply. Momentum and Segment Strength
Villas & Branded Residences
- Luxury villa prices in areas like Palm Jumeirah saw a ~20% H2 price surge.
- Premium “branded” high-rise residences are trading at up to 69% premiums over standard builds.
Mid‑Market & Affordable Housing
- Supply expansion includes mass‑market mid‑segment projects to meet demand beyond the luxury segment. Booking growth estimated at 10–15%.
- Dubai’s strategy to add 73,000 homes in 2025 includes mid-tier offerings.
🏗️ Development Pipeline & Infrastructure
Dubai’s rapid expansion is supported by a truly national-scale development effort.
Strategic Development Goals
- Deliver 300,000 residential units by 2028.
- Balance steep luxury valuation increases with the provision of mid-tier and affordable segments.
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