Dubai has become a hotspot for people wanting to relocate, with more than 200 thousand people already choosing it as their home in the last fiscal year. Strong demands from end users raise the need for an upsurge in real estate sector investment, increasing profits for both parties.
With new land laws, the Dubai Land Department is betting big in 2025, expecting GDP growth of more than 6% due to the realty sector. The new land laws include realty asset allocation as freehold in downtown Dubai areas of Sheikh Zayed Road & Al Jaddaf. This decision aims to increase transaction volumes by over 50% by 2033, fulfilling the Dubai Real Estate Strategy 2033.
Registered owners can avail of these benefits by verifying eligibility through Dubai’s REST smart app. Eligible owners must apply to DLD for land valuation, which involves a fee based on 30% of the property's gross floor area.
Dubai's Real Estate Growth
Dubai's strategic location between Europe and Asia has driven international interest in real estate. Upcoming projects like Palm Jebel Ali, The Oasis by Emaar, and Uptown Tower (“Uptown Dubai” by JLT) are setting new records. In 2025:
- Apartment sales contributed to around 90% of total growth.
- Residential real estate surged to 170K+ units with a 40% YoY increase.
- Commercial rents increased due to demand-supply imbalance:
- Offices: +11%
- Retail units: +9.7%
- Warehouses: +21.1%
- Over 42K residential units will be handed over this year.
- A 41% YoY surge in residential handovers is expected.
New Buyer Requirements
The UAE's central bank now requires buyers to bear upfront costs, including agency/broker fees and DLD fees, along with a 20% down payment. This move ensures long-term security and inclusivity.
Market Competition and Future Outlook
Quality terms will improve, with competition based on construction quality, environmental factors, and security. These strategic efforts support sustainable development in the Gulf region.
ROI Impacting Factors
Key factors affecting ROI include:
- Property Type: Apartments yield higher rent, while villas appreciate.
- Location: Downtown Dubai and mainland areas offer the highest returns.
- Market Conditions: Demand and supply fluctuations impact pricing.
- Property Management & Financing: Long-term profits often outweigh short-term gains.
With this detailed insight, we aim to assist customers in navigating Dubai's premium real estate market.
Please reach out to “info@moneymaestro.ae or call us:- +971524282372” for expert guidance and resolutions.
