Dubai real estate market enters a pivotal stabilisation phase

It marks a new chapter for emirate's real estate sector, one defined by resilience, diversity, and strategic growth: Property experts

- Issac John [e-mail]

Dubai's real estate market is entering a pivotal stabilisation phase in 2025, signalling a maturing and sustainable investment landscape.

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.