The luxury real estate market in Dubai is preparing for further growth in 2025

It is expected that the luxury real estate sector in Dubai will continue its strong growth in 2025, driven by strong demand, limited supply and continuous flow of wealthy individuals, according to a new market study.

Sales of luxury villas and apartments in Dubai, with a value of more than 15 million dirhams, increased significantly over the past ten years, to reach 71 billion dirhams in 2024 for the second year in a row, an increase of approximately 688% since 2015.

However, while there are slightly more than 326 thousand real estate currently under construction in Dubai, a report issued by “Fäm Real Estate” today reveals a clear picture of the limited number of luxury or very luxurious real estate that will enter the market during the two years to the next three years.

Prices continue to grow

The report stated that the scarcity of ready -made real estate in particular, amid the interest of buyers and investors, will support the continued growth of prices in 2025. The latest data from Dxbinteract showed that only 16,500 units are under construction in the luxury or luxury sectors as follows:

From 5 – 10 million AED: 10.209 units
From 10 – 15 million dirhams: 2.360 units
From 15 – 30 million dirhams: 2831 units
From 30 – 60 million dirhams: 809 units
+ 60 million dirhams: 330 units

In addition, the vast majority of these projects are far from completion, as 72% of them are in a scope of 0-20% in terms of building progress.

Firas Al -Masadi, CEO of Fäm Real Estate Company, said: “These figures emphasize the limited offer of very luxurious real estate, which indicates a very exclusive and limited market, as it is expected to remain

The demand for at least two to three years. “

Balance supply and demand

Away, the balance of supply and demand will depend on how to receive new projects. But if about 6,500 wealthy people continue annually during the years 2024-2026, we are likely to witness a fixed demand, which supports high prices. “

For 2025, the company “Fäm Lux”, the luxury real estate department of “Fäm Real Estate”, targets a sale of 10 billion dirhams.

Meanwhile, the company, “Nordic Pay”, the group’s boutique developer, who specializes in requests designed on demand, expects to achieve sales of one billion dirhams of the prefabricated luxury villas.

With the maturity of the very luxurious real estate market, the lack of villas and increasing competition in the apartment market constitute the preferences of buyers and developers’ strategies.

The main lands designated for very luxurious villas in areas such as Palm Jumeirah, Jumeirah Pay Island and Emirates Hills are very limited, which leads to a severe shortage of supply, which makes the demand constantly high. The demand for prefabricated apartments also remains much higher than the supply, which causes prices to rise. Buyers focus on real brand housing with a real luxury element.

Relative balance

The offer and demand for apartments in the resale sector is relatively balanced. Buyers also have options in projects that are close to completion. The demand for branded apartments on the map remains strong, with developers such as Shuba, Emaar and Damac give investors more options.

The assimilation rates of the newly launched branded housing have changed as a result of the great offers. The developers find it difficult to repeat the immediate sales two years ago, when the “Fäm Real Estate” company obtained reservations of a billion dirhams of the Bulgarian Lithaus project within 24 hours.

Another new trend for buyers in the very luxurious real estate sector is to give priority to small boutique projects with limited supply that maintain higher levels of exclusive and impose distinctive prices.

Meanwhile, in the real estate market on the map, developers who collaborate with new global brands in Dubai attract international investors and add a unique value to new projects.

“In the aftermath of all these transformations, the basics remain strong. With precise planning, unique designs and exclusive offers, developers and investors alike can flourish in this prosperous sector.”