Long-term renters in Dubai’s most sought-after districts may soon find relief, as experts forecast price drops in areas such as Dubai Marina and Jumeirah. While this may reduce rental yields for landlords, industry leaders say it reflects a broader rebalancing in the property market.
The outlook comes after a record-breaking April, where Dubai’s real estate market achieved an all-time high of Dhs 62.1 billion in monthly sales. To explore the path ahead, Property Finder hosted a roundtable with senior executives from the emirate’s top real estate firms.
Market outlook remains positive
Despite ongoing global challenges including inflation and geopolitical uncertainty, real estate leaders expressed cautious optimism for the rest of 2025. They noted sustained demand from international buyers, with Property Finder reporting the United States as the top source of overseas search traffic, followed by the UK and India.
Daniel Hadi, CEO of Engel & Völkers, said: “The market has been extraordinary. We have delivered the best quarter in our history. We are positioned at the beginning of what I believe will be two more years of remarkable growth in this bull run.”
Sam McCone, Managing Director of McCone Properties, added: “I remain profoundly optimistic about what lies ahead. Dubai’s true narrative of exceptional potential and opportunity still remains a bit of a hidden secret that the world has yet to fully recognise.”
Off-plan sales drive revenue
The off-plan property segment continues to show strong performance, supported by commission structures of up to 10% for agents and developers. While current activity remains high, experts expect the market to gradually shift toward a more balanced supply and demand environment.
John Lyons, Managing Director of Espace Real Estate, said: “We’ve seen a very strong start to the year, with Q1 revenue up 29.1%, driven by both the continued expansion of our business and the positive momentum in Dubai’s property market. The number of brokers contributing to company revenue has increased by 26% year-on-year, reflecting our strategic growth efforts. While market conditions remain buoyant, we expect rental yields to come under pressure over the medium term as new apartment supply comes online and rental growth begins to stabilise.”
Resale activity gains pace
Luxury and larger homes continue to perform well, particularly in the resale market. Handovers of off-plan properties have led to increased transactions in Abu Dhabi’s high-end segment, with Dhs 8 million-plus villas attracting strong interest from Dubai-based buyers.
Kika Pavese, Managing Director of MD Real Estate, said: “Handovers have transformed our business towards resales. Demand for properties in the Dhs 8–20 million range has exploded, driven substantially by Dubai-based buyers. We’re consistently closing 10–15 monthly transactions in Jumeirah Islands alone.”
Simon Baker, Managing Director of Haus & Haus, noted: “International buyers continue targeting villas aggressively and are currently our safest segment.”
Abdullah Alajaji, Founder and Managing Director of Driven Properties, added: “Premium investments continue to have enduring value with healthy market interest, while rental rates are adjusting to create more accessible entry points across all segments. For example, luxury villas in prestigious Jumeirah that previously commanded Dhs 3 million are now available at a more attractive price point of Dhs 2 million. This strategic market recalibration aligns with global investment trends, creating opportunities for astute investors to maximize value in a maturing market landscape.”
Focus on informed decision-making
Michael Lahyani, Founder and CEO of Property Finder, who chaired the roundtable, concluded: “We brought the industry’s top leaders together at a crucial point for the market. Yes, transaction volumes are strong, but we’re also seeing signs of change. At Property Finder we strive to bring clarity through data to help brokers adapt and buyers make smarter decisions in any environment.”
Executives from BetterHomes, Engel & Völkers, Espace Real Estate, MD Real Estate, Treo Homes, Driven Properties, Allsopp & Allsopp, fäm Properties, Haus & Haus, and McCone Properties took part in the discussion.
tanvir@dubainewsweek.com
