Is Dubai’s Real Estate Market Headed for a Correction in 2025?
- Varisha
- Jun 28
- 1 min read
Dubai’s real estate market has been booming for the past few years, but that may be starting to shift. According to recent reports, property prices have climbed more than 60% since 2022, and with over 210,000 units expected to hit the market by 2026, many are wondering if we’re headed for a slowdown.
Ratings agency Fitch recently predicted that prices could decline by as much as 15% between late 2025 and 2026. The reason? Oversupply. Developers have been racing to keep up with demand, but if absorption slows—even slightly—it could impact pricing across several segments, especially mid-range apartments.
There is some light at the end of the tunnel. It is anticipated that Dubai's branded luxury real estate and prime locations would continue to support luxury real estate. Holding firm are a lot of foreign investors, particularly those looking for long-term value in secure countries like Dubai, United Arab Emirates.
Investors with extremely high net worth may not view this stage as a warning sign. For them, it can be an opportunity. In places like Dubai Hills, District One, Palm Jumeirah, or Meydan, a well-timed acquisition in late 2025 could have significant upside potential over the following three to five years.
In summary, although the real estate market may be cooling a little, the fundamentals are still solid. Consider investing with a longer time horizon, pay attention to location, and keep an eye on delivery timetables.
Reference:
Comments