Blogs

Read blog postings and commentary from the Black Code Properties.

Dubai's real estate market witnessed the launch of 53 new projects by 37 developers in January, comprising more than 12,400 units, according to a report by Property Monitor. Residential apartments dominated the market, accounting for 86.7%, while townhouses and villas made up 11.6% and 1.7%, respectively.
The off-plan market remains strong, with over 250 additional projects in the planning phase. In terms of pricing, the AED 2 million to AED 3 million range saw the fastest growth, reaching 21.6% of the market, driven by projects such as Damac Sun City, Celia, and Seera. Conversely, the AED 750,000 to AED 1 million segment declined by 4.7%.
Overall, properties in the AED 1 million to AED 3 million range accounted for 52.8% of the market, while lower-priced properties under AED 1 million dropped to 24.9%, and high-end properties above AED 3 million rose to 22.3%.

Dubai’s rental market is evolving with changing tenant preferences and regulatory updates. Community living, flexible leasing, and metro access are key factors. Freehold property reforms boost investor confidence, while RERA’s updated rent index enhances price transparency. The Nakheel-Meydan merger expands the residential portfolio, with technology and sustainability shaping the future of rentals amid Dubai’s growing population.

Dubai’s service charges are expected to rise by up to 10% in 2025 due to higher maintenance, utility, and district cooling costs. Older buildings require more upkeep, pushing fees higher, while newer developments may see smaller increases. Landlords may raise rents to offset these costs, depending on demand and RERA regulations. While service charges influence buyers, factors like location and ROI remain key. The trend reflects inflation, rising facility management costs, and regulatory compliance impacting overall property expenses.

Luxury real estate markets, including Dubai’s, are showing signs of correction. While prices surged beyond inflation and construction costs, softening is evident in areas like Palm Jumeirah and Downtown due to rising supply. Developers face falling returns and are turning to private credit, raising prices despite steady mortgage rates. The once-limited inventory now faces oversupply, with sentiment shifting amid high valuations. As buyer caution grows, Dubai’s luxury market may be heading toward a more balanced phase after years of rapid escalation.

Dubai now leads the Middle East in private jet demand, fueled by a surge in high-net-worth individuals—around 6,700 new millionaires joined the UAE last year, bringing Dubai’s total to 81,000. To meet this rising demand, Monaco-based X-1 Jets launched its Summer 2025 JetCard, offering flexible light jet travel within Europe. Despite a slowdown in Europe, private aviation in the Gulf continues to grow steadily, driven by wealth inflows and a strong appetite for luxury travel services.

Dubai’s rental market is maturing, with more tenants opting for multi-year leases to lock in rates, while landlords benefit from reduced vacancies. One- and two-cheque payments rose, showing confidence from higher-income tenants. Renewals dominated activity, and townhouses saw a surge in demand. Buyers are capitalising on narrowing rent-to-own gaps, with Dh3m homes often cheaper to own than rent. Q1 2025 saw Dh114 billion in sales, driven by off-plan deals and end-user buyers, with significant new supply expected by 2026–2028.

Dubai’s real estate market surged in April 2025, with AED 46 billion in transactions up 77% year on year. Off plan sales rose 47%, making up 59% of deals, driven by strong investor demand. Allsopp & Allsopp saw a 143% jump in transaction value. Secondary market prices climbed 23% month on month, with villas and townhouses leading at 34% growth. Apartment prices rose 32% year on year. However, rental transactions fell 24%, signaling a shift in focus toward ownership and long term investment in Dubai’s evolving property landscape.