Investors are rushing to Dubai: Here’s why you shouldn’t wait

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Dubai’s real estate market has recorded a blockbuster first half of 2025, with the latest statistics from the Dubai Land Department (DLD) revealing that the city attracted approximately 94,700 investors, a robust 26 per cent increase compared to the same period in 2024.

Of these, nearly 59,000 were first-time investors, representing a 22 per cent year-on-year rise. UAE residents made up 45 per cent of the new investors, a figure that underlines the strong domestic confidence in the sector.

Residential transactions soar in value

This influx of investors fuelled a notable rise in residential property activity. The sector registered 91,900 transactions amounting to Dhs 262.1 billion, marking a 22.9 per cent increase in volume and an impressive 36.4 per cent rise in transaction value compared to the first half of 2024.

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While there was a marginal 2.4 per cent dip in transaction volumes when compared with the second half of 2024, mainly due to a slower first quarter, the market showed a strong rebound in Q2, powered by solid demand from both local and international investors, as well as genuine end-users seeking long-term assets.

Alongside this transaction growth, supply has also picked up pace.

Approximately 17,200 residential units were completed in the first six months of 2025, with 42.4 per cent of these concentrated in key neighbourhoods such as Jumeirah Village Circle, Sobha Hartland, and Mohammed Bin Rashid City.

Looking forward, the market continues to anticipate substantial development. Over 61,800 units are under construction and slated for delivery before year-end. However, only 21 per cent of these projects have reached 75 per cent or more in construction progress, suggesting that delivery timelines may be at risk, according to Cavendish & Maxwell’s latest Dubai Residential Market Performance report.

Market leaders: Top developers by sales volume

The dominance of major players like Emaar, DAMAC Properties, and Sobha Group remained evident in H1 2025. Emaar maintained strong sales, particularly in The Valley and Emaar South. DAMAC Properties recorded significant volumes from its DAMAC Islands and DAMAC Hills 2 developments. Meanwhile, Sobha Group experienced consistent demand for Sobha Solis and Sobha Orbis in Motor City.

Emerging developers also made their presence felt. Binghatti and Danube Properties retained strong positions among the top players, while new entrant Beyond debuted in the top 10. Its projects in Dubai Maritime City captured growing buyer interest, highlighting the diversification in developer landscape and buyer preferences.

These shifts indicate that buyers are increasingly looking for high-quality, competitively priced properties with flexible payment structures — and developers delivering on these fronts are gaining traction.

Dubai’s global standing a key driver

Dubai’s strategic global positioning and progressive visa policies have played a pivotal role in converting international interest into investment.

Initiatives such as the Golden Visa and the 10-year investor visa have bolstered buyer confidence by offering long-term security, lifestyle access, and freedom to conduct business.

“This combination of lifestyle and legal certainty has been a game-changer,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “It has significantly expanded our international client base and converted leads into serious, long-term investors.”

Amid global economic volatility, Dubai has emerged as a “safe haven” for capital. The city’s economic fundamentals, including its regulatory transparency, the Dhs-USD peg, and zero income tax policy, provide a stable and lucrative investment environment.

High-net-worth individuals (HNWIs) are increasingly directing funds into Dubai’s real estate sector, drawn by its low-risk, high-return proposition. “There’s growing confidence among our HNWI clients that Dubai offers a stable and rewarding market, especially in uncertain global times,” Hadi added.

Freehold vs. leasehold: Strategic decisions

Investors in Dubai continue to weigh the benefits of freehold versus leasehold ownership. Freehold properties offer full ownership rights, including the ability to resell, lease, or pass properties on to heirs, making them attractive to long-term investors.

Leasehold options, on the other hand, usually come with lower upfront costs and can still offer strong returns for those with short- to mid-term investment goals. Investment consultants are increasingly tailoring recommendations based on individual investment timelines.

Upcoming mega-developments and masterplans are reshaping Dubai’s urban fabric. Projects in areas such as Al Jaddaf, Dubai Islands, and various waterfront zones are attracting investor attention, thanks to their integration of lifestyle, wellness, and tech infrastructure.

“These developments are not just real estate projects; they’re future-proofed ecosystems,” said Hadi. “Early investors often see significant capital appreciation as these communities grow and infrastructure matures.”

Infrastructure mega projects to boost demand

Infrastructure plays a critical role in sustaining real estate momentum. Major projects like the Dubai Loop and the Etihad Rail network are opening up new development corridors and boosting demand in emerging zones.

“With improved connectivity on the horizon, we expect renewed interest from both end-users and investors. These projects are significant value drivers and will play a big role in shaping the next phase of Dubai’s property landscape,” Hadi concluded.