Dubai's property sector continues to defy global headwinds, with robust rental prices and sustained demand shaping a market that shows little sign of slowing. According to Firas Al Msaddi, CEO of fäm Properties, the emirate's real estate landscape is entering a pivotal phase - one that underscores both opportunity and challenge for developers.

For the first nine months of 2025, Dubai recorded a 20 per cent surge in off-plan transactions and a 10 per cent rise in resale deals, climbing from 48,000 to 53,000 units. Meanwhile, new residential launches totaled around 120,000 units, down 7.5 per cent from last year's 130,000.“Supply has tightened while demand continues to grow,” Al Msaddi noted, adding that this imbalance is fueling price resilience across many segments.

The supply squeeze is largely attributed to soaring land costs.“Land prices in Dubai have jumped 200–300 per cent since 2020,” he said. This escalation has made it increasingly difficult for new entrants to secure plots and deliver profitable projects, creating a market where established players with strong brand equity hold a distinct advantage.

Location matters

While overall indicators remain positive, performance varies by district. Areas like Jumeirah Village, where 27,000 new units are hitting the market, could see price corrections due to oversupply. Conversely, Jebel Ali - with 29,000 units planned and infrastructure still in early stages - offers significant upside potential.“Infrastructure development will be the key driver,” Al Msaddi explained.“Locations like Jebel Ali are poised for growth as connectivity and amenities improve.”

Rental prices, for now, remain firm across most neighborhoods, reinforcing Dubai's appeal for both investors and residents.“We're not seeing signs of a broad correction,” he said, though selective adjustments are likely in saturated pockets.

Abu Dhabi emerges as a strategic alternative

The sharp escalation in Dubai land values is prompting developers to look beyond the emirate.“Abu Dhabi offers a historic opportunity,” Al Msaddi emphasised. While plots in Dubai's Al Wasl area have skyrocketed from Dh500 per sq. ft. in 2021 to Dh3,500 today, Abu Dhabi's land remains comparatively affordable. This price gap is attracting developers eager to secure prime locations at logical valuations.

The current environment marks a turning point for Dubai's developers. Established names like Emaar, DAMAC, and Aldar continue to dominate, leveraging brand trust to command premium pricing and faster sales cycles.“Brand equity now plays a major role,” Al Msaddi said.“An Emaar project sells differently than a first-time developer's offering.”

Newcomers such as Binghatti have also made headlines, scaling rapidly over the past few years. Yet, as borrowing costs and land prices climb, the market is likely to favor seasoned players with proven track records.

Despite high-profile moves into markets like London, Dubai remains the crown jewel for developers.“No global market compares to Dubai's returns today,” Al Msaddi asserted. Overseas ventures are largely strategic, aimed at diversification rather than chasing higher margins.

Underlying this momentum is a profound lifestyle shift.“People aren't just investing in Dubai - they're choosing to live here,” he said. The city's evolution from a transient hub to a long-term home for many expatriates is reinforcing demand and sustaining growth.

As 2025 draws to a close, Dubai's real estate market stands at an inflection point - buoyant yet selective, competitive yet rewarding. For developers and investors alike, the message is clear: location, brand strength, and timing will define success in the region's most dynamic property landscape.

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