A City Growing by 1,000 Residents Daily
Dubai’s real estate market is under mounting pressure as the city’s population grows at a record pace. In the first quarter of 2025, nearly 90,000 new residents were added—an average of around 1,000 people per day. By the end of March, the total population reached 3.92 million.
For comparison, all of 2024 saw a net increase of about 170,000 people, with daily growth averaging less than 500. The sharp uptick this year has intensified demand for housing across every segment of the market.
Supply Growth Not Keeping Up
Developers have ambitious plans, with over 61,000 new homes expected to be delivered across Dubai in 2025. Of those, nearly 12,000 apartments and villas were completed in the first quarter alone.
However, delays in handovers are common. Last year, only about half of the projected housing units were delivered by year-end. If this pattern continues, supply may fall short again — just as demand hits new highs.
Home Prices and Rent Still Climbing
The pressure on available housing is leading to consistent growth in both sales prices and rental rates. Recent data shows:
- Apartment prices have risen by 21.4% year-on-year
- Villa prices have increased by 30.3%
- Apartment rents are up 10%
- Villa rents have grown by 5.1%
This upward trend is making it more challenging for new and existing residents to find affordable options. With inventory tight, the competition for available homes has intensified, particularly in popular neighborhoods and emerging communities.
Commercial Real Estate Also on the Rise
It’s not just residential demand that’s growing. The office space sector is also benefiting from ongoing economic expansion and new business formation. Capital values for office properties have jumped by 29.1% in the past year, while asking rents have increased by 20.2%.
Meanwhile, Dubai’s hospitality and industrial sectors are also seeing solid performance, reflecting broad-based growth across the economy.
What It Means for Buyers – and How DreamDwell Can Help?
Despite a slight dip in transaction volumes this quarter, the long-term outlook for Dubai real estate remains strong. With thousands of new residents arriving each month, housing demand is only going in one direction: up.
DreamDwell Properties is here to help buyers, renters, and investors navigate this fast-moving market. Whether you’re searching for a family villa, a high-yield investment apartment, or commercial space, our expert team can guide you toward the best opportunities in Dubai’s most dynamic communities.
