Property investors in Dubai can expect returns of eight to 10 per cent in 2025-26 - among the highest globally - driven by robust demand and a steadily growing population, according to industry executives.

Speaking to Khaleej Times, Mansoor Majid, CEO of Majid Developments, projected continued strong returns for investors in 2025 and beyond. He attributed this growth to sustained demand as Dubai remains a magnet for both investors and residents.

“The government has a clear and effective strategy to attract investment and stimulate demand. Projects are often sold out even before their official launch. With the city's ongoing expansion and increasing population, we anticipate even higher investor returns next year,” Majid said.

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Dubai's population is expected to reach four million by the end of 2025, further reinforcing the city's appeal. The emirate added 102,590 new residents in the first half of 2025 alone - an average of 566 people per day.

Since the Covid-19 pandemic, property prices in Dubai have seen consistent growth, positioning it as one of the most lucrative real estate markets worldwide.

Real estate brokerage firm Haus and Haus highlighted Dubai's performance in contrast to other major cities, which typically offer property yields between two and five per cent.

“Dubai stands out on the global stage. Buyers are now more focused on properties with premium quality, modern amenities, strategic accessibility, and well-planned communities,” the firm said.

According to Haus and Haus, a short supply of villas and townhouses has fuelled significant price increases - 18.6 per cent for townhouses and 37.1 per cent for villas year-on-year. Apartment prices, by comparison, have seen a more modest 5.7 per cent rise.

Entry-level investors and young professionals continue to drive demand for apartments, underscoring their popularity across the city's real estate landscape, it said.

Mansoor Majid also noted a sharp uptick in European interest, particularly from French investors.

“All of our clients at the moment are French. They're drawn to Dubai's vision, investment-friendly environment, and competitive pricing,” he said, adding that branded residences are in especially high demand.

Majid dismissed any likelihood of a market correction, citing Dubai's relative affordability compared to other major global cities.

Speaking on the sidelines of Majid Developments' latest launch, Arlington Park, he also highlighted a 15 per cent year-on-year increase in construction costs, driven by rising global demand for materials and ongoing geopolitical tensions.

“Steel, concrete, and cement prices have all surged, putting pressure on construction budgets,” he said.

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