Emaar Business Park Building No. 3, First Floor, P.O. Box 125400, Dubai (UAE)
Emaar Business Park Building No. 3, First Floor, P.O. Box 125400, Dubai (UAE)
Dubai summer 2025 real estate forecast: boom or correction?
Dubai’s real estate sector looks set for vibrant changes in summer 2025, as multiple economic factors impact the decision to rent or purchase. We are ready to explore the opinions of economists and their findings.
Dubai’s real estate market has expanded rapidly during the last few years, with property prices rising by 75% since last February and coming close to reaching pre-2008 levels. Economic strength, visa regulation changes, and a rising population have all contributed to its growth. The market should become more stable, with more than 72,000 new residences expected next year.
There is still a strong demand, as a 35% higher number of property sales took place in February 2025 compared with February 2024. This means buyers and investors remain interested, especially in unfinished projects.
Off-plan properties are becoming a key reason buyers are interested in summer 2025. Firms like Emaar, Sobha, and Ellington are introducing attractive payment schemes for those interested in owning property, making it easier for everyone to participate. Many of these projects can be found in new master-planned communities, with easy access to modern facilities, space for parks and schools, and businesses nearby.
Those looking to move by September will find these changes very attractive. Because off-plan units have flexible payment terms and are expected to increase in value, they are a good choice for a market moving toward lasting stability.
According to statistics, most expatriates prefer renting over buying homes. Experts forecast a rise of up to 13% in monthly rents, and with consistent demand, holiday home prices may increase by as much as 18%. However, as more units become available, rent growth is expected to slow, offering tenants a wider range of options.
In the past, Dubai’s rental market has experienced seasonal fluctuations. During the cooler months, rental activity tends to slow down, as many people avoid moving during the peak summer heat. Areas such as Palm Jumeirah and Downtown Dubai are expected to experience a 10-12% increase in rental rates because the demand for prime locations continues.
