Dubai is currently experiencing an unprecedented real estate boom: in August 2025 alone, properties worth 13.9 billion US dollars changed hands – a record figure. While investors from around the world are buying, rents are also rising at a rapid pace. Particularly in demand: luxury apartments and new developments in sought-after districts such as Palm Jumeirah and Downtown Dubai. Demand remains high, and prices continue to climb.
The morning sun bathes the Burj Khalifa in liquid gold. In the streets below, busy hustle prevails – cranes rotate, SUVs honk, brokers make calls on the run. In a glass-walled sales office in Downtown Dubai, contracts click one after another across the screen. 'Sold,' says the real estate consultant. 'Another off-plan penthouse gone.'
Dubai doesn’t just sell real estate – it sells the future. And with record numbers: in August 2025, properties worth 13.9 billion US dollars (AED 51 billion) were sold – an increase of 20% compared to the previous year. The Dubai Land Department (DLD) reported over 34,000 transactions, more than ever before.
Particularly in demand: luxury villas, waterfront apartments, and off-plan projects. 'Our launches are sold out within days,' reports a developer. Demand exceeds supply – especially in the premium segment.
Rents are also rising rapidly. According to CBRE, average apartment rents have increased by 21.6% year-on-year, while villa rents are up by 19.6%. In prime locations such as Palm Jumeirah, Downtown, and Jumeirah Village Circle, luxury has long become the standard. 'Tenants no longer ask about square footage,' says a broker. 'They ask about the view and the concierge.'
What is driving this boom?
Above all, international high-end buyers are snapping up properties – often online, often without viewing. Their favorite? Branded residences with sea views. 'They want exclusivity, privacy, and lifestyle,' says a broker from Dubai Marina.
But not everything shines: many tenants struggle with rising prices and move to outlying areas. Thanks to new infrastructure and metro connections, however, these are becoming increasingly attractive.
For developers, this is a wake-up call: off-plan sales now account for over 60% of the market. Smart buildings, sustainable concepts, and lifestyle-oriented communities are in demand. The property market is no longer just housing – it is an experience.
In the background: Dubai’s Master Plan 2040. The goal: doubling the population, expanding sustainable districts – and real estate as the centerpiece of this vision.
For investors, 2025 is a key moment: rental yields are rising by an average of 20%, particularly in premium locations. Off-plan investments offer high value appreciation, especially in development zones such as Arjan, Dubai South, or Meydan.
Also attractive are tax advantages, simple profit repatriation, and residency privileges – such as the 10-year Golden Visa for investors. Institutional investors are increasingly discovering REITs and co-investments in Dubai.
Investor tips for 2025:
Dubai’s skyline is more than spectacular – it is an asset. Those who enter now could benefit in the long term.
