In recent years, real estate investment in Dubai has become one of the most prominent topics.
The Dubai property market reached a volume of $500 billion between 2022 and 2025, attracting
high-level investors from abroad. In 2024, foreigners accounted for most of the $207 billion in
real estate transaction volume. Investors from various continents have chosen the city for its
tourism appeal and high return potential. That same year, Dubai was the seventh most visited
city in the world, attracting far more people than its actual population. While the city's current
population is slightly over 4 million, it welcomed 17 million visitors. The UAE government,
which plans to invest billions of dollars in infrastructure in the coming years, is significantly
supporting the city’s growth. Major projects such as new airports and ports are putting upward
pressure on housing prices. The inability of central city projects to meet rising demand is
pushing prices even higher. As a result, new investors are increasingly turning to Dubai not just
for property purchases but also for attractive rental opportunities. With an average annual rental
yield of 5% to 7%, Dubai’s growing expat population continues to increase its potential.
One of the critical factors prospective investors must consider is the future supply of new
housing units. Nearly 210,000 new units are expected to be delivered in Dubai between 2025
and 2026. Although rental prices increased by 7.4% in 2025 compared to the previous year,
projections indicate that rental price growth may slow in the coming years. However, rental
yields could fluctuate depending on the rise in property prices. The increasing number of foreign
real estate investors may drive property prices even higher. The city's horizontal expansion and
the growing proportion of foreign residents also support this trend.
It is expected that 90,000 new residential units will be completed in 2025 and 120,000 in 2026.
These properties, consisting of both apartments and villas, are likely to be quickly acquired by
foreigners in the coming years. Most of the properties bought and sold in the city are owned by
non-residents. A significant portion of sales occurs during the early stages of projects, and by
the time the projects are completed, property prices have usually increased substantially. These
profits can later be reinvested through various channels. Once the projects are completed, the
rental process begins. Thanks to tax advantages, rental income is tax-free, offering high returns
for investors. The same applies to buying and selling transactions.
In conclusion, Dubai’s population has now reached 4 million. By 2033, the population is
expected to rise to 8 million, attracting even more investors. Studies indicate that the real estate
transaction volume will reach $1.1 trillion between 2025 and 2030. For this reason, at Parcel Estates,
we invite you to invest in Dubai and take advantage of these exciting opportunities with
our expert guidance.
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