Is it worth buying property in Dubai in 2025?

The Dubai property market is ending 2024 on a high, with a 20% year-on-year increase in property prices. Figures from the third quarter of 2024 show a record increase in sales, +38% compared to the previous year.

These figures illustrate buyers’ confidence in purchasing property in one of the most glamorous cities in the world.

The best places to invest in property in Dubai continue to be Jumeirah Village and Dubai Hills Estate, while Dubai Marina and Business Bay are also in demand.

The average price per square metre for a property in Dubai in 2024 was £4,888, compared to £3,398 in 2023.

While this may seem expensive, compared to London, where the average price per square metre in 2024 was £14,507, property in Dubai offers a bargain.

So if you’re considering buying a property in Dubai now is the time to take action before prices increase further.

The Dubai government is launching a series of initiatives aimed at attracting more investors to the city.

These include:

• The Real Estate Evolution Space Initiative (REES) is an initiative by the Dubai Land Department to bring in the latest technology and eco-systems to enhance the property market.
• New, favourable visa regulations:
  • Visits now allow multiple entry and 90-day visits with a 5-year tourist visa.
  • The golden visa has been extended to cover more categories, such as educators, athletes and researchers.
  • The family visa no longer requires a minimum salary.
  • Job seekers have had visas extended to 120 days.
• More eco-friendly properties are being built to address environmental issues, many of which include smart technology for efficiency.

While locations such as Dubai Marina and Downtown Dubai will continue to be popular areas in which to buy property, new areas are being developed that are more affordable. Districts such as Dubai South Mohammed Bin Rashid City and Al Furjan are all fast becoming highly desirable property purchase locations to buy property.

The city’s thriving tourism industry, business-friendly environment and the number of expatriates moving here for work or retirement influence the rental market in Dubai. With a total population of 3.8 million people, the latest figures published by Digital Dubai show that 3.3 million of the population are non-Emirati, and many of these are potential renters.

As one of the most visited cities in the world, Dubai attracts millions of international visitors annually. The latest Dubai Government Tourist Performance Report shows that the city received 14.96 million overnight visitors in January-October of 2024, an increase of 8% on the same period the previous year.

These high figures drive demand for seasonal rental properties, particularly in areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah. Holiday rentals often yield higher returns due to premium pricing during peak tourist seasons.

Dubai’s position as a global business hub attracts many multinational corporations and entrepreneurs. In January – September 2024 The Dubai Chamber of Commerce reported 51,161 new companies registering in the city, which demonstrates its popularity as a prime business location.

This growth fuels the demand for housing among business professionals, particularly for high-quality, centrally located rental properties. As companies establish or expand their operations, long-term leases in residential zones are in demand which can increase rental yields.

With its tax-free income policy and quality lifestyle, Dubai is an attractive location for expatriates. Many families choose to set up home in Dubai, taking advantage of the numerous international schools, excellent health care system and reputation as one of the safest cities in the world. This population creates demand for rental housing within a range of budgets.

Since the introduction of the ‘virtual work residence visa’ remote working in Dubai has become a popular option. With access to excellent high-speed Internet connectivity and a vast choice of co-working spaces, many remote workers decide to apply for this one-year visa and enjoy Dubai’s vibrant lifestyle.

The average rental yield in Dubai is currently 6.4%, and it’s important to note that Dubai rental income is not taxable.

The table below shows the average price to buy a 2-bedroom property, the rental income and potential yield in the main districts of the city.

*Prices converted to GBP for ease of comparison

The Dubai government’s long-term vision for Dubai includes projects such as the Dubai 2040 Urban Master Plan, which intends to enhance urban areas, making them more pleasant and sustainable.

This kind of major investment demonstrates the country’s dedication to making it a sought-after destination for visitors, residents and investors.

If you’re thinking about buying property in Dubai contact us and one of our specialised iad consultants will take you through your options!

3 key things to remember

• Buying property in Dubai offers both short and long-term investment opportunities.
• Dubai is a constantly developing country with a modern, vibrant infrastructure.
• There is no income tax on rental property in Dubai.