In the early months of 2025, Dubai’s real estate market is experiencing heightened demand, primarily driven by rapid population growth. The city’s population has risen to approximately 3.85 million, with expatriates constituting 87% of this figure. This influx has led to a 16% increase in rents over the past year. In response, developers are accelerating new project launches to cater to the growing housing needs.
However, this rapid expansion has introduced challenges, including increased living costs and infrastructure strains. Rental prices have surged by up to 20% in key areas, prompting some residents to relocate to more affordable suburbs. Additionally, traffic congestion has worsened due to a significant rise in registered vehicles. Despite these issues, Dubai’s real estate sector remains robust, with strategic investments and strong demand expected to drive continued growth throughout 2025.
