Growing population, rising demand and increasing Dubai property prices…

Property prices in Dubai are predicted to continue to rise over the next two to three years, it has been reported by The National. The cost of renting is also presumed to increase as the number of people looking for properties to rent or buy outweighs the number of properties available in the emirate.

A study by ValuStrat management consultancy highlights that the number of new homes completed in 2024 was the lowest in 6 years, with 27,000 new homes completed last year.

The population of Dubai saw the highest increase in 6 years last year, the emirates population grew by over 169,000 in 2024 to reach 3.825 million at the end of the year.

Various experts spoke to The National, highlighting that the cause of the property price increase is due to supply and demand, one expert highlighted that while the rate of growth will still increase in 2025, it will be at a slower rate than 2023 and 2024.

Another recent change that can affect property buyers is that DLD fees will now be paid up front and not added to mortgages as previously done.

Also reported by The National, the ValuStrat study also showed the average cost of buying an apartment grew by 23.6 per cent in 2024, with villas increasing by 31.6 per cent. The cost of renting also increased last year, with apartments rising by 13 per cent and villas going up by 5.8 per cent.

It is expected that with many apartment towers and properties due to be completed over the next two to three years, that rents and property prices will even off by 2028.

Let’s all hope…