March Update: Important Market Shift Alert
The Market is Dropping – Are You Prepared? The Dubai real estate market is witnessing its first price decline in 30 months, signaling a potential market shift.
Sales prices have dropped by 0.57% month-on-month (MoM), and transactions have decreased by 7% MoM, pointing to a cooling trend.
Rental transactions in Dubai are seeing declines across the board:
- Villa and townhouse rentals have dropped by 14%.
- Apartment rentals are down by 6%.
Additionally, lease renewals fell by 30% in February 2025. With an increase in supply, rental prices face downward pressure. These shifts were already apparent with slowed price growth in the fourth quarter of 2024, as noted by Espace and Khaleej Times.
Off-Plan Market Overwhelmed by Stock
In January alone, 53 new project launches added more than 12,400 units to the market, creating significant competition. Developers are responding to these challenges with aggressive payment plans like 80/20 and 75/25 schemes, reduced down payments, and discounts to attract buyers. Arabian Business reports on these trends.
Challenges in the Short-Term Rental Market
The short-term rental market is feeling the impact of oversupply:
- Entire-place active listings increased by 24.27% in February 2025 compared to February 2024.
- Listings dropped by 7% between January and February 2025, going from 27,500 to 25,600.
Market occupancy averages 74%, which contrasts with AirDXB’s higher occupancy rate of 93%. These statistics highlight increased pressure and competition for hosts, as sourced from AirDNA.
What Does This Mean for Investors and Property Owners?
The real estate landscape in Dubai is shifting rapidly due to higher supply, falling prices, and increased competition. Whether you're an investor or a property owner, staying informed and adapting quickly to these changes is crucial to remaining ahead of the curve. Now is the time to strategize and make well-informed decisions.
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In January alone, 53 new project launches added more than 12,400 units to the market, creating significant competition. Developers are responding to these challenges with aggressive payment plans like 80/20 and 75/25 schemes, reduced down payments, and discounts to attract buyers. Arabian Business reports on these trends.
Challenges in the Short-Term Rental Market
The short-term rental market is feeling the impact of oversupply:
- Entire-place active listings increased by 24.27% in February 2025 compared to February 2024.
- Listings dropped by 7% between January and February 2025, going from 27,500 to 25,600.
Market occupancy averages 74%, which contrasts with AirDXB’s higher occupancy rate of 93%. These statistics highlight increased pressure and competition for hosts, as sourced from AirDNA.
What Does This Mean for Investors and Property Owners?
The real estate landscape in Dubai is shifting rapidly due to higher supply, falling prices, and increased competition. Whether you're an investor or a property owner, staying informed and adapting quickly to these changes is crucial to remaining ahead of the curve. Now is the time to strategize and make well-informed decisions.
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