Analysts Predict a Decline in Housing Prices in Dubai in 2025
A price correction in Dubai’s housing market is expected in the second half of 2025 and in 2026, according to a report released last week by ratings agency Fitch. This marks a shift in trend after several years of a post-pandemic boom.
The entry of a large number of new apartments and houses into the market (210,000 units — twice as many as in the previous three years) is likely to lead to a significant increase in supply and, as a result, a decrease in prices.
From 2022 to the first quarter of the current year, property prices in Dubai rose by approximately 60%. This was driven by large-scale infrastructure investments, generous tax policies, and the easing of visa regulations. Thousands of foreigners, including Russians, moved to the emirate.
Real estate plays an important role in Dubai’s economy. According to government data, the total value of transactions in this sector reached AED 761 billion ($207.22 billion) in 2024 — an increase of 36%.
