Why 2025 Could Be the Best Year Yet to Buy Off-Plan in Dubai

Dubai’s property market, especially off-plan, has always been the centre of attraction among investors. You buy an apartment today, pay in instalments, and by the time it’s ready, it’s worth more than you paid. That’s the dream with off-plan properties. If you are thinking of stepping into the real estate scene, 2025 might just be the best year to do it. This is not due to appealing marketing or developers presenting attractive brochures, but rather because the numbers, trends, and policies are quietly aligning in your favour.

2024 Set the Stage

In 2024, Dubai’s real estate sector reached a new record with 2.78 million total procedures, including property transactions and rental agreements. It was a 17% increase from 2023. Of these, there were 226,000 real estate transactions worth AED 761 billion, a 36% rise in volume and a 20% increase in value compared to the previous year. The city also saw 217,000 investment deals worth AED 526 billion, with the number of investments growing by 38% and their value increasing by 27%.

Off-plan sales made up 60% of all transactions in 2024. Jumeirah Village Circle (JVC) leads the way with 11,927 transactions. Business Bay had the highest average price for off-plan apartments at AED 2,600 per square foot. The off-plan villa market also performed well, especially in areas like The Valley by Emaar and Dubailand.

Payment plans are stretching to 5-6 years in some projects. A few years ago, you’d get 2-3 years max. People are buying off-plan because they believe in the long-term play, and for 2025, that long-term play looks a little more solid.

Why 2025 Could Be Ideal for Off-Plan Investment

Investors prefer Dubai’s real estate market for investment because it generates good rental income and long-term value. Off-plan properties are offering solid returns, usually between 6% and 9%, and even more in popular areas like Business Bay and Dubai Creek Harbour. What makes 2025 exciting is that many Expo 2020 projects and those delayed during COVID-19 are now finishing up, bringing new homes, shops, roads, and more demand. Dubai’s growing population, now over 3.9 million, is pushing rental prices higher. Investors are also getting smarter, choosing locations with easy access to transport, schools, and daily needs instead of just focusing on beachfront views. 

Looking ahead, Dubai's population is anticipated to surpass 4 million by 2026. This growth will sustain demand for residential properties, particularly in emerging areas like Dubai South, Jumeirah Village Circle, and Dubai Hills Estate. According to Arabian Business, prime residential property values in Dubai are projected to increase by up to 9.9% this year, following a 6.8% rise in 2024. Rental prices have surged by 23.5% over the past year, with expectations of continued growth exceeding 10% in 2025. 

Despite the strong demand, the luxury market faces a supply shortage, with listings for properties priced over AED 35,000,000 dropping by about two-thirds. To meet this demand, Dubai is set to complete approximately 19,700 villas in 2025. Developers plan to build around 300,000 new homes by 2029, mostly apartments, but there will still be a shortage of residential properties. This ongoing lack of homes could keep prices rising over the long term. So, 2025 could be the right time to make your investment count.

How Dubai Avoids Global Economic Risks

The global economy has been unstable with inflation, higher interest rates, and uncertain stock markets. But Dubai is doing better because its currency, the dirham, is linked to the U.S. dollar, keeping it stable. Mortgage rates in the UAE have also settled after rising a lot in 2022 and 2023. Oil prices are steady, which helps keep money flowing and investors interested. So, while the world feels uncertain, Dubai feels more stable and safe for now.

What’s Driving the Market?

The government of Dubai is handing out reasons to invest in Dubai’s real estate market. Here’s how:

Golden Visa for Investors

Buy a property worth AED 2 million, and you may be eligible for a 10-year residency visa. Developers are aware of this and often help buyers with the paperwork, so it’s less hassle. This way, you are not just buying a home or an investment; you are also securing a long-term stay in Dubai.

No Property Tax, No Capital Gains Tax

In most countries, when you sell a property or earn rental income, a big chunk goes to the government. Not here. Dubai doesn’t charge you any property tax or capital gains tax. This alone can save investors thousands of dirhams every year.

Freehold Ownership for Expats

Unlike some places where foreign buyers have restrictions or can only lease land for a limited time, Dubai offers full ownership in designated areas. You own your property, with no “leasehold” terms or tricky conditions. Areas like Downtown Dubai, Dubai Marina, Business Bay, and Palm Jumeirah are some of the popular freehold zones. So if you want something solid, that’s reassuring.

Developers Are Throwing in Freebies

Remember when buying a phone with free headphones? Dubai’s off-plan market is doing the same thing. Except instead of headphones, it’s free parking, waived fees, or even guaranteed rental yields. Some developers are offering post-handover payment plans so you don’t pay the full amount until after the apartment is ready.

Early-Bird Discounts

Dubai keeps growing with big new projects like Dubai Creek Harbour, Mohammed Bin Rashid City, and Palm Jebel Ali still in the early stages. Buying off-plan in these areas is like getting the best seats before the excitement begins. Prices are lower now because the areas are still under construction, but in a few years, when everything is finished, those prices will go up.

Conclusion

There’s no perfect time to buy property, but sometimes things come together just right, and 2025 looks like one of those times. Prices are going up, but haven’t shot up yet. Developers are still giving good deals, though that might change later in the year. The government is also supporting buyers. So, 2025 could be a great year to take action. Just remember to talk to trusted agents, compare options, and don’t rush because of pressure. But if you are interested in off-plan properties, it’s smart not to wait too long.

Take the first step to own an off-plan property in Dubai. Contact us to find great off-plan offers and start your 2025 investment journey today!