Record-breaking sales and double-digit price increases reflect sustained demand, led by global buyers, continue to boost the emirate as one of the world’s most attractive real estate markets.
But, is it the right time to invest in the Dubai real estate market?
“Yes, now is a great opportunity to invest in Dubai real estate,” Lewis Allsopp, Chairman of Allsopp & Allsopp told Arabian Business.
“The track record speaks for itself, with those who’ve invested previously experiencing consistent growth and strong returns. With industry professionals actively investing and the UAE’s economy thriving across various sectors, Dubai continues to offer attractive opportunities for long-term ROI. Dubai is a standout choice for investors seeking robust returns in a dynamic global market,” he added.
Dubai’s property market continues to attract global investors drawn by its lucrative tax-free income potential, strategic position as a global hub, and world-class infrastructure, according to Christopher Cina, Director of Sales at Betterhomes added.
“Recent US tariffs have introduced global economic uncertainty, prompting investors to seek stable markets like Dubai. Additionally, the weakening of the US dollar, to which the UAE dirham is pegged, has made Dubai properties more affordable for foreign investors, particularly from Europe, India, and Russia,” he explained adding that there are many signals and indicators investors should be looking out for to determine if it is the right time.
“No one unfortunately has a ‘crystal ball’, however, there is a wealth of data available nowadays. Investors should monitor key metrics such as overall economic outlook, currency strength, supply and population growth figures as well as overall trends in the prices in Dubai as a whole and the specific areas that they are considering,” he added.
Aside from this, Allsopp explained property prices have seen “significant movement” in 2024, with steady growth, without any slowdown.
“Our data shows a significant 41 per cent jump in the average price of villas and townhouses, fuelled by high demand and not enough properties available. As long as this shortage continues, prices for these types of homes will likely stay competitive,” he said.
So, which Dubai areas should investors buy or rent property in right now?
“Right now, smart investors are focusing on areas with strong infrastructure already in place, those with exciting upcoming developments, and locations that consistently see high rental demand,” Allsopp explained, adding that these strategic considerations serve as crucial indicators for long-term property value and potential for substantial capital appreciation.
Looking ahead, Allsopp suggested that investors should closely monitor off-plan villa community projects and any available villas.
“The current lack of supply within the villas and townhouse market creates a competitive pricing environment and presents a strong opportunity for long-term capital appreciation in these property types. This supply-demand imbalance positions villa investments as particularly promising for future growth in Dubai,” he said.
Betterhomes’ Cina explained there are multiple attractive investment zones exist across Dubai, with the decision to purchase or rent ultimately depending on each investor’s specific needs and circumstances.
With mortgage payments currently running lower than rental costs for comparable properties, purchasing makes financial sense, particularly for those planning to remain in Dubai for the medium to long term, he added.
“Palm Jebel Ali has certainly attracted a lot of interest recently with Nakheel and major infrastructure is taking place there. There have also been a number of new developments attracting a lot of interest, such as Ghaf Woods by Majid al Futtaim, as well as numerous Emaar launches such as Oasis and Emaar South,” Cina said.
International demand surges as experts share tips for first-time buyers
British buyers dominated the market in Q1, largely motivated by lifestyle considerations and favourable currency exchange rates, Allsopp said, adding that Indian investors maintained a significant presence, pursuing properties that serve dual purposes as personal residences and income-generating rental assets.
“Interestingly, we’re also seeing a rise in interest from Canadians, Lebanese and French investors, drawn to Dubai’s stability and attractive investment incentives,” he added.
As for first-time buyers, Cina recommends “find a great reliable, well established agency, understand your budget along with all of the associated costs, get pre-approved if buying with a mortgage as great properties don’t stick around for long. Then understand your ‘non negotiables’ as well as what you may be able to compromise on as there is usually something that has to give.”
He also pointed out that common mistakes include failing to consult with mortgage brokers early in the process and not thoroughly analysing financial implications before property viewings.
“I would say taking too much time if that perfect property does come along which we understand particularly for first-time buyers or clients that are new to the market as the market remains very busy with Q1 2025 being the highest transacting in history,” he added.
In addition, Allsopp urged investors to “take time” to research various neighbourhoods, scrutinising developer track records, and identifying property types that align optimally with both financial constraints and expected investment returns.
“Crucially, ensure you have a clear understanding of payment plans, ongoing service charges, and potential rental yields. Doing your homework and having the right guidance will set you up for success,” he concluded.
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