Growing Demand and Economy Fuel Dubai Real Estate

Dubai real estate is on the cusp of breaking yet another record. If property prices continue their upward trajectory through October, they will have risen for a stunning 57 consecutive months. This is Dubai’s longest-ever growth streak since its real estate sector opened to foreign investors over two decades ago. 

Driving this boom is an unprecedented demand for luxury residences across the city’s most prestigious neighbourhoods. Dubai’s population surpassed 4 million earlier this year, with more than 80,000 millionaires now calling the city home. They are being attracted by various factors ranging from diverse luxury lifestyles and the highly popular Golden Visa to no income tax and lucrative ROIs. It is no surprise, then, that in a recent projection of the U.A.E.’s real estate sector hitting $759 billion by 2029, Dubai is expected to account for the lion’s share. 

Moody’s has predicted that the city will welcome 150,000 new homes between 2025 and 2027, while Fitch has raised this number to 250,000 new homes during the same period. Wherever the figure eventually lies, it is clear that supply is striving to catch up with soaring yet sustainable demand. Analysts expect the market to absorb these new units without a significant dampening of price momentum. 

Beyond real estate, Dubai’s broader economy is also fuelling this property price rally. The emirate recently topped a list of global Greenfield FDI projects for the eighth half-year period in a row during H1 2025, with 643 such projects according to the Financial Times. This was 478 more than the second-placed city on the list, and the highest half-year figure recorded by any city ever. Dubai also ranked first globally for headquarters FDI projects, and led across sectors as varied as ICT, financial services, the creative industries and environmental technology. 

This comprehensive inflow led the city to place second globally for FDI capital during H1 2025, with AED 40.4 billion ($11 billion) recorded — a 62% increase from H1 2024, thereby aligning with the emirate’s strategic goal of doubling its economy by 2033 and ranking among the world’s top three urban economies. 

Adding a further boost is the U.A.E.’s emergence as a major global cryptocurrency player, ranking among the world’s top five cryptocurrency-friendly investment destinations as per a new Henley & Partners report. The country scored a perfect 10 for tax friendliness, stemming from its zero taxes on cryptocurrency trading, staking and mining. Dubai in particular is seen as the major driving force behind this accolade, one that has placed the U.A.E. alongside the United States, Singapore, Hong Kong and Switzerland as attractive destinations for wealthy cryptocurrency investors. This has resulted in a growing influx of digital millionaires, further fuelling the demand for luxury real estate and premium lifestyle infrastructure. 

With strong fundamentals, rising population wealth and unmatched investor confidence, Dubai’s real estate market seems set not only to break records but to redefine them. The city continues to solidify its position as a magnet for global capital, innovation and high-net-worth migration.