The real estate market is witnessing a different discussion on “a slight and selective price correction”

The real estate market is witnessing a real estate debate about the possibility of a “price correction” in the market, which showed a variation in the opinions of workers in the real estate sector, between those who indicate the possibility of a slight and positive correction in the rents with moderate growth in the selling prices, given the new supply expected in the second half of 2025, and between those who exclude any corrections in the prices of real estate sale or residential rents on The near term.

The opinion -holders said that the possibility of a price correction occurred, that real estate prices have reached high levels of peak, which means that the positive price indicators have become expected.

They emphasized that the correction enhances sustainability, and increases the market attractiveness to investors from abroad, both residents, as well as it supports the entry of new groups of investors to markets and the transition from rental to ownership.

They emphasized that the prices of the sale of real estate in Dubai are moving towards a stage of stability and balance, in light of the increasing demand for ownership, which makes the market more flexible and attractive, and that the provision of some developers for offers and facilities in some projects reflects the beginning of a healthy and positive correction phase in the real estate market.

In turn, real estate who excludes that correction pointed to several factors that drive prices to continue growth, but at varying proportions during the coming period, most notably the continuous flow of investors to Dubai, the recovery of the tourism sector, and the increase in the number of population and residents in the emirate, in a performance that they described as expectations during the first quarter of this year 2025.

A recent report by the “Fitch” credit rating agency, which suggested that real estate prices face a decrease exceeding 10% in the second half of this year 2025, and in 2026, explaining that “correction” comes after an increase in the prices of housing units by 60% in the period between 2022 and the first quarter of this year 2025.

The agency’s report also expected that the large growth in the delivery of about 210,000 units planned in 2025 and 2026 will cause an increase in supply, and to push prices to decline by no more than 15%.

“Correction” is excluded

In detail, the Chairman of the Board of Directors of Al -Waleed Real Estate Company, Mohamed Al -Mutawa, told «Emirates Today»: “According to the indicators of demand for real estate, and sales that record continuous growth indicators driven by demand for various projects, including those that are presented in the markets, it is excluded in the short term any correction operations in real estate or residential rental prices.”

He added that «the strength of demand in the markets, which supported the offering of many modern projects in the markets, denies any expectations about any price correction that some may expect within recent periods, in light of attracting more investors from inside or outside the country.

Growth factors

For his part, the Chairman of the Board of Directors of “W. Capital Real Estate Brokerage”, Walid Al -Zarouni said: “There are several factors that pay rental prices to continue growth, but in varying proportions during the coming period, most notably the continuous flow of investors to Dubai, the recovery of the tourism sector, and the increase in population and residents in the emirate.”

He added: «The performance of the real estate sector exceeded expectations during the first quarter of this year, and recorded strong growth after some expectations were indicating a slowdown in rents or sales prices.

Al -Zarouni said that “the rental market in Dubai will witness a clear difference in the coming period, according to the nature of the regions and the real estate supply in it.”

He said: «The rental market can be divided into three main categories; There are areas that will continue to record a rise in rents, especially those that include distinguished projects with water views or on the marine facades, because of their high demand, and there are areas that may witness a decline in rents as a result of the abundance of supply, while rents will stabilize in other areas that have a balance between supply and demand ».

Regarding the new real estate projects, Al -Zarouni stressed that the demand is still strong on the villas and “Town House” units in the distinctive sites, but there are projects that have started to witness a relative decline in demand, which prompted some developers to provide offers and facilities to attract buyers, which reflects the beginning of a healthy and positive correction phase in the real estate market.

An optimistic vision

“There is an optimistic vision about the real estate market in the local market, but there are expectations indicating the possibility of a slight correction in rents and moderate growth in the sale prices by the end of 2025.” said the lecturer at the Institute of Anoven Expresses and CEO of “Property Real Estate Company”, Mohamed Shaath: “There is an optimistic vision about the real estate market in the local market, but there are expectations indicating the possibility of a slight correction in rents and moderate growth in the sale prices by the end of 2025.”

“The rents have recently witnessed strong increases due to the high demand, especially in the vital areas with high density in the demand, and the new offers expected in the second half of 2025 may lead to a positive correction, which restores balance to the market.”

Shaath said that “the continued rise in rents is related to population growth and Dubai’s attractiveness as a global center,” noting that “entering new projects in areas such as (Jumeirah Village Village) and (Dubai Marina) will reduce pressure on prices.”

Shaath stressed that “the high rents pushes more population towards ownership, especially with the availability of easy financing and prices that are still very competitive,” noting that “this trend enhances Dubai’s vision to build stable and sustainable societies.”

Shaath expected the increase in selling prices between 5% and 10% during the year 2025, especially in the areas with high demand such as “Palm Jumeirah” and “The Business Gulf”, in exchange for stability in some emerging areas due to the increase in supply.

Shaath noted that the Dubai Real Estate Market is characterized by great flexibility, noting that “the expected correction enhances sustainability, and increases the market attractiveness to investors from abroad, and residents alike.”

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Increase sales

In the same context, the real estate expert and general manager of “Awad Gargash Real Estate Company”, Raad Ramadan, said that “the increase in sales on real estate in the Dubai and Sharjah markets enhances the stability of demand, and that any price corrections, whether for sales or residential leasing, said some time.”

He added: “The new projects in the markets enhance diversity, meet the needs of investors and enrich the markets, in addition to any partial correction operations that will support the entry of new groups of investors to markets and the shift from rental for ownership.”

Relative calmness

Jalal Al -Bani, the general manager of the “expert real estate company”, said: “expectations indicate a relative calm in the growth of rents during the year 2025,” due to a set of influencing factors in the market, including the expected increase in the housing supply, as more than 72.3 thousand new units will be delivered during the current year, which contributes to the balance between supply and demand in the real estate market. “

Al -Bani pointed to the role of the smart rent index by saying: “The application of the smart rent index would enhance the transparent pricing mechanisms that depend on the data, allowing both the tenants and the owners to make more aware decisions, and limit the random practices in determining the rents, and thus in the flexibility to deal with any indicators of correction.”

He continued: «The expected correction in the market will have positive repercussions, as the slowdown in prices and rents contributes to enhancing a health balance in the market, and limits the risk of the formation of real estate bubbles that may harm long -term stability.”

Regarding the orientations of ownership against the rent, Al -Bani said that the market is witnessing a growing shift towards ownership, driven by supporting government policies and facilities that were presented in residence systems, noting that these trends are in line with the Dubai Real Estate strategy aimed at achieving sustainability in the sector, and added that the prices of real estate in Dubai are moving towards a stage of stability and balance, in light of the increasing demand for ownership, which makes the market more flexible And gravity, whether for investors or for residents looking for stable housing opportunities.

Strong request

In addition, the CEO of “Stratom Company for the Management of Angel Societies”, Saeed Abdul Karim Al -Fahim, said that “the demand is very strong in the real estate market, especially in Dubai, at a time when the market is currently witnessing real estate purchases, whether for housing, investment, or resale, permanently and daily.”

Al -Fahim said that the report that talks about the decline is not compatible with reality and future expectations.

He continued: “The demand for office rents is very strong as well, and it has not been with this force in Dubai since 2008, as there is a great demand for housing rent”, pointing to the presence of cases of rental at less than the general rate, but they are very few and stemming from specific reasons such as the speed of the real estate broker, the age of the building, or the desire not to leave the apartment completely empty, indicating that they are unnecessary things.

Al -Fahim emphasized that the great demand for Dubai real estate, a purchase and leasing, stems from great confidence in the emirate’s directions and the great demand for work and residence in the country that presented a dazzling model for many, pointing out that the next few weeks will witness the launch of five major projects to meet the great demand in the real estate market in Dubai.

Al -Fahim said: “The real estate market in Abu Dhabi is also very attractive to investors, and it is witnessing a great demand, and a huge project has recently been launched that witnessed long queues for purchase, and the first stage of it was sold in record time.”

Ascending trend

In the same context, the director of the “Platinum Home Real Estate”, Ahmed Salah Rabie, said that real estate prices in the Emirates, especially Abu Dhabi, are stable, constantly increasing and remarkable upward trend, and there are no indications of an influential price correction during the coming period.

He added: “The very high and continuous demand for real estate in the country, and in Abu Dhabi specifically by investors inside and outside the Emirates, prevents an effective decrease during the coming period.”

He said: “Even during the Corona crisis, there was no significant decrease in real estate prices, contrary to the expected and unlike what happened in many countries of the world.”

He added: “It is also unlikely a decline in rental values ​​due to the high demand, although the rental values ​​are determined in general according to the site and the view, and whether the leasing is monthly, annually or daily.”

He continued: «What we see today is from the high real estate prices and rental values ​​due to several factors, most notably the security and safety factor witnessed by the state, the great demand for living and working in the state, investment facilities, and attracting innovative projects.” He agreed that the current period, for example, witnessed the announcement of major real estate projects that were completed by the sale of its units in a very short period of time, which can be measured by hours, and some luxury projects Distinguished and its sale prices are very high, which reflects full confidence in the real estate scene in the country in general.

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Correction is not possible

Nader Hassan, CEO of Sky Line, agreed that talking about the occurrence of an incomplete price correction. Great and continuously. ”

He added: “Talking about the occurrence of a large, immediate, or uncomfortable correction,” and he reviewed the good mechanism of the market by saying: “When a large number of real estate projects are delivered at once, an abundance occurs in the real estate market, especially since some prefer to live in, while others prefer leasing for the purpose of investment, so there is an increase in the supply, at a time when those who rented rent in new buildings prefer, especially if the price difference is not large Monday », and he continued:“ In this case, a simple correction can occur in the prices of some of the oldest real estate whose price was exaggerated, and in the event of this, the reduction will be gradual, and in simple proportions that revolve around 10% in a number of regions. ”

Hassan emphasized that the owners usually do not want to reduce the rental values, and they do not resort to the reduction except in cases of extreme necessity, as they prefer to provide incentives and privileges to the tenants, some of them want the annual increase, or the tenant is granted a month or two for free, or the rental values ​​are installed without an increase.

Hammad: The market is strong … real estate prices are logical

Ikrami Hammad, Chairman of the Board of Directors of Future Real Estate Company, ruled out a price correction in real estate prices in the local market during the coming period.

He told «Emirates Today»: “There are no indicators currently on the possibility of this price correction.” He pointed out that “the great demand from investors from all over the world to invest in Emirates real estate is evidence of the strength and durability of the market, and no expected decline.”

Hammad considered that real estate prices are logical, expecting that real estate will maintain their current prices, if they will not witness more rise during the coming period.

Salamat: The correction indicators are expected

The real estate expert, Sufyan Al -Salamat, considered that “real estate prices in the Dubai and Sharjah markets have reached high levels of peak, which means that the positive price indicators are become expected in a way that indicates the extent of the elasticity of the markets, and supports the continuity of demand for them, and the entry of additional new groups to shift towards real estate ownership.”

He added, “It is expected for real estate correction indicators to start selectively in some areas that have witnessed significant price rises, while it may take time in areas that are highly demand.”

He continued: «It is expected that the correction will be clearer in some areas during the next year, which indicates the extent of market flexibility, in a positive way that supports the entry of more investors in different categories.