The UAE’s real estate market is expected to reach an estimated value of AED 2.79 trillion by 2029
A 5-10% increase in property launches targeting the affordable luxury segment is forecasted for 2025
The UAE’s affordable luxury real estate sector is booming, with 2024 seeing a remarkable 34% surge in transaction values, largely driven by off-plan properties. This upward trajectory looks set to continue, with forecasts predicting 5-8% annual price growth and average rental yields of 7% in 2025. Specifically, Dubai’s luxury market saw a 26% year-on-year increase in transaction prices for apartments in the city’s most sought-after areas. This growth is expected to continue into 2025, with a further 5-10% rise in residential property prices, reflecting a maturing market that is effectively balancing supply and demand.
Industry analysts attribute this momentum to rising rental yields, favorable government policies, and a growing preference for premium yet attainable residential options. In 2024, Dubai’s real estate market recorded over 169,000 property sales, valued at AED 488 billion, further proof of the sector’s strength and resilience. Developers are responding with innovative payment plans and sustainability-focused projects, positioning the market for continued expansion.
Madhav Dhar, COO and Co-founder of ZāZEN Properties, commented, “The affordable luxury segment isn’t just a passing trend; it’s a fundamental shift in Dubai’s real estate landscape. Today’s homebuyers are looking for residences that strike the perfect balance between quality, sustainability, and value. At ZāZEN Properties, we’re proud to lead the charge with developments like The Hub Residences, which sets a new benchmark for premium luxury living.”
Looking ahead, the affordable luxury segment in the UAE is primed for continued growth. Projections indicate that the market will maintain an annual growth rate of 2.28% from 2025 to 2029, reaching an estimated value of AED 2.79 trillion by the end of the decade. This growth will be fueled by a combination of strong economic policies, investor-friendly regulations, and a strategic focus on urban development.
As developers continue to meet this demand, a 5-10% increase in property launches is forecasted, targeting this segment in 2025. This aligns with Dubai’s broader vision for affordable luxury development, reinforcing the city’s position as a premier global real estate hub.
With Dubai continuing its transformation into a global investment powerhouse, ZāZEN Properties remains at the forefront, aligning its projects with the evolving preferences of buyers and investors.