Bloomberg: Dubai’s $117B Property Boom Built on Strong Foundations

Dubai, UAE – August 13, 2025 – Dubai’s property market has reached historic highs in 2025, with the first half of the year recording USD 117.4 billion (AED 431.2 billion) in real estate transactions, a 25 percent jump compared to the same period last year, according to figures highlighted in a recent Bloomberg report. Residential prices have climbed 16.6 percent year-on-year, driven by robust foreign demand, forward-thinking visa reforms, and the appeal of a weaker US dollar for international investors.

A Market Driven by End-User Demand

Unlike the speculative surge of 2008, today’s property growth is underpinned by genuine end-user demand. Analysts note that a significant share of purchases are from residents and long-term investors rather than short-term flippers.

“The market is increasingly being shaped by genuine buyers rather than speculators,” says Will McKintosh, a regional partner for the Middle East and North Africa at Knight Frank. He notes that less than 5% of buyers now resell their properties within 12 months of purchase, compared with 25% in 2008. Real estate leaders are hoping more of them will stay for the long haul or even choose Dubai for retirement.

This shift reflects Dubai’s evolution into a global hub where people not only invest but also live, work, and raise families.

Stronger Financial Safeguards

The market’s resilience is supported by tighter lending rules that limit excessive leverage, reducing the risk of overextended buyers. Upfront land payment requirements for developers have added another layer of financial discipline, ensuring that only well-capitalized projects move forward. These measures, analysts say, have created a healthier and more stable environment for sustainable growth.

Government Reforms Attract Global Talent

Dubai’s golden visa expansions and streamlined residency pathways for property owners continue to draw high-net-worth individuals, entrepreneurs, and skilled professionals. The city’s blend of tax advantages, modern infrastructure, and high quality of life is strengthening its reputation as a preferred global destination for both business and lifestyle.

Prime Projects Fueling Growth

Master-planned communities, luxury waterfront residences, and mixed-use developments are setting new sales benchmarks. Some projects have sold out within days of launch, reflecting pent-up demand and investor confidence. This trend is particularly visible in high-demand areas such as Dubai Creek Harbour, Dubai Marina, and upcoming coastal developments.

Long-Term Outlook Remains Positive

With major infrastructure investments underway, a steady pipeline of premium developments, and preparations for global events reinforcing Dubai’s position on the world stage, industry experts forecast continued momentum into 2026. As Bloomberg noted, the combination of genuine demand, prudent regulation, and strong economic fundamentals positions Dubai’s real estate boom on “solid ground”, offering long-term value to both residents and investors.