the Dubai Real Estate The market to enter a healthy “stabilization phase” and investors are confident in long-term projects, according to brokering and developer asicus.
After a period of outstanding growth in which residential property prices entered about 60 percent between 2022 and early 2025, Asico said, Asicus said.
This transition indicates one step toward a more balanced and lasting slope.
Dubai Real Estate Stindilization Phase
Multiple key indicators focus on this stabilization:
- Price adjustments: Until January 2025, average price per square foot standing at AED1,484 ($ 404), reflecting a centuring wasting in previous years
- Demand Move: While luxury properties continue to attract interest, there is a noticeable shift toward the middle of the market and cheap residence. Of 2024, two of the five ready home sales are appreciated less AED1m ($ 272,000), which promotes a wider market appeal and one step toward a more durable growth
- Supply Dinnamics: Developers respond to market progress by facilitating construction schedules, trying to carry hands ahead three to six months. This active approach is designed to meet current demand and prevent potential disabilities, which contributes to the balance market
Crying abualhail, director of real estate in AscoSaid: “The current phase of stabilization reflects the natural progress of a maturing market. We are seeing a shift from speculative buying towards more strategic, long-term investor. and asico, we believe in investor confidence, improved regulations, and a more sustainable future for Dubai’s real estate sector. “
Despite the stabilization, Dubai real estate market continues to show strong performance. On February 2025, the market records 32 percent increase in transaction volume and a 37 percent increase at the same period of 2024, with more than AED50bn ($ 13.6bn).
The Off-Plan market remains an important driver of this activity, with 38 percent increase in number and 60 percent increase in the sum year.
The key areas such as Dubai Creek Harbor, Mohammed Bin Rashid City, and Dubai Hills are more popular for investing in plans.
The continued government initiatives in Dubai also play an important role in strengthening the real estate sector.
The Dubai Economic Agenda (D33), referring to the emirate economic duplicated economy in 2033, specifically focused on the development of the real estate sector contribution.
In addition, policies such as the Golden Visa Program and the provision for 100 percent foreign owners in some sectors have additional steady trust in the market investor.
Astico said: “While the market enters this stabilization phase, investors are presented with opportunities to make known decisions in a more informative environment”.
Increased focus on mid-market properties opens the trails for a wider investments, while maintained general need promotes long-term market strength.
According to Asiko, this period of stabilization indicates a sector of Dubai’s ownership, which factors such as quality drivers of long-term returns, transfer from confidence in low consideration.
