January 17, 2025 | Staff Reporter | UAE | Developers
As Dubai’s real estate market continues to evolve, experts are predicting significant growth in both rental demand and the city’s standing as a global financial hub in 2025. Key industry leaders have shared their outlook for the year ahead, highlighting trends that will shape the market.
Akshay Nagdev, Managing Partner of Foremen Fiefdom, points to rising demand in the rental market as a driving force. "As rental demand in Dubai continues to rise, experts predict an 18% increase in short-term rentals and a 13% rise in long-term rental segments in 2025," he says. "This surge is fueled by Dubai’s growing population and the city’s appeal as a destination for professionals from around the world."
Nagdev also reflects on the performance of the market in 2024, noting the resilience demonstrated through significant price increases and transaction volumes. "The real estate market in 2024 has already demonstrated extraordinary resilience, with property prices surging 41% in the first half of the year and over 43,000 transactions completed," he adds. Looking to the future, Nagdev believes government reforms, foreign investment, and Dubai’s strategic initiatives will continue to drive growth. "The UAE Central Bank's forecast of 6.2% national GDP growth, alongside Dubai’s smart city initiatives and sustainable development strategies, positions the real estate market for continued expansion, with a likely shift toward more affordable and mid-range property developments."
"As rental demand in Dubai continues to rise, experts predict an 18% increase in short-term rentals and a 13% rise in long-term rental segments in 2025. This surge is fueled by Dubai’s growing population and the city’s appeal as a destination for professionals from around the world."
Akshay Nagdev, Managing Partner of Foremen Fiefdom
In addition to the residential rental boom, Dubai’s status as a global financial hub continues to solidify, with family offices playing an increasingly important role. Obediah Ayton, Chairman of the Family Office Summit, highlights the growing prominence of such offices in Dubai’s economic landscape. "Dubai has firmly established itself as a global hub for finance, and the rapid growth of family offices in the region is a testament to this evolution," Ayton remarks.
He emphasizes the importance of events like the Family Office Summit and the Abu Dhabi Finance Week in fostering collaboration and attracting international investment. "These gatherings provide a platform for meaningful dialogue and collaboration. They help family offices access new investment opportunities, explore innovative wealth management strategies, and build strategic partnerships," he explains. According to Ayton, the expansion of family offices further strengthens Dubai’s reputation as a leading financial centre, fostering sustainable economic growth.
As 2025 unfolds, both the rental market and Dubai’s role in global finance are expected to continue their upward trajectory, driven by strong government policies and an increasingly diversified economy.
For more Dubai real estate news, click here