The UAE's affordable luxury real estate sector is booming, with 2024 seeing a remarkable 34 per cent surge in transaction values, largely driven by off-plan properties. This upward trajectory looks to continue, with forecasts predicting 5-8 per cent annual price growth and average rental yields of 7 per cent in 2025. Specifically, Dubai's luxury market saw a 26 per cent 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 per cent rise in residential property prices, reflecting a maturing market that effectively balances supply and demand.
Industry analysts attribute this momentum to rising rental yields, favourable government policies, and a growing preference for affordable residential options. In 2024, Dubai's real estate market recorded over 169,000 property sales valued at AED 488 billion, proving 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 Z?ZEN Properties said, "The affordable luxury segment isn't just a passing trend; it's a fundamental shift in Dubai's real estate landscape. Today's homebuyers seek residences that strike the perfect balance between quality, sustainability, and value. At Z?ZEN Properties, we're proud to lead the charge with developments like The Hub Residences, which sets a new benchmark for premium luxury living."
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 per cent from 2025 to 2029, reaching an estimated AED 2.79 trillion by the decade's end. Strong economic policies, investor-friendly regulations, and a strategic focus on urban development will fuel this growth.
As developers continue to meet this demand, a 5-10 per cent 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.
