The Dubai Real Estate & Short-Let Market Report Q1 2025

Dubai Real Estate

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The Dubai real estate market has experienced a noticeable deceleration in growth. From Q1 2023 to Q1 2024, transaction volumes surged by an impressive 30%. However, the increase from Q1 2024 to Q1 2025 was more restrained, at 22% according to Property Monitor.
While there is still year-on-year growth, the pace has evidently slowed with the latest figures revealing a 10% reduction in growth compared to the previous year. Quarter-on-quarter sales volumes and values also reinforce this trend. The market appears to be shifting towards a phase of greater stability and maturity, marking a departure from the rapid expansion witnessed in earlier periods.

A Global Recession? 

The United States has recently implemented one of the most aggressive trade policies in modern history, imposing tariffs ranging from 10% to 245% on imports. The impact extends far beyond Wall Street; the uncertainty caused by these tariffs is felt globally, affecting real estate, stocks, and investments. This uncertainty is a major threat to investor confidence and economic growth, as it undermines stability across markets.

Area Spotlight

Check out our Q1 2025 report to see more on a short-let investment in Al Furjan.

Dubai Short-Let Market

The Dubai short-let market follows a predictable yearly cycle, with stock levels rising from August to January and declining until July. This dip presents a key opportunity for property owners, as fewer active listings mean reduced competition and higher Average Daily Rates. Strategic adjustments during this phase can significantly boost profitability.

AirDXB’s dynamic pricing model ensures your property achieves optimal revenue while maintaining market leading occupancy levels of 94%. By tailoring rates to market trends rather than using a one-size-fits-all approach, we help you stay ahead in Dubai’s evolving short-term rental sector.