As global capital searches for anchor points of certainty amidst uncertainty, Dubai - the miraculous city in the Middle East desert - is quietly becoming a common choice for both "new money" and "old money". In the first quarter of 2025, Dubai's real estate market reached a historic high with a transaction volume of 142.7 billion dirhams.
Data shows that in the first quarter of 2025, the Dubai real estate market completed a total of 45474 transactions, with a year-on-year increase of 22% in transaction volume and a surge of 30% in transaction volume. Both the current and pre-sale housing markets achieved their best first quarter performance in a decade.
The CBRE report shows that the average price of local residential properties continues to rise, with an average increase of 18% in 2024 and reaching 20% in the first quarter of this year. The Dubai real estate market has experienced five consecutive years of growth this year, with a 146.6% increase in the past five years until Q4 2024.
Continuous population growth
Dubai's population has reached 3.8 million, with an expected annual growth rate of 3.6% by 2030. The foreign population accounts for more than 88%, and the population of Dubai accounts for 41.9% of the population of the United Arab Emirates. This highly internationalized living environment provides sustained demand for the real estate market.
The trend of a younger population in Dubai has also increased the demand for housing. The age group of 30 to 34 years old has the largest population, reaching 636000 people, accounting for about 17% of the total urban population.
The attractiveness of low taxes
Dubai's "zero tax" policy (no personal income tax, capital gains tax, property tax, inheritance tax) directly reduces asset holding costs and attracts a large amount of international capital inflows.
In addition, the Dubai Free Trade Zone's corporate tax reduction policy has driven the expansion of multinational corporations' regional headquarters, further stimulating housing demand.
The benefits of a golden visa
At the same time, a series of policy combinations launched by the Dubai government have further promoted the prosperity of the real estate market. In 2019, the local government launched the "Golden Visa" program, allowing foreign investors to obtain 10-year residency through property investments of over 2 million dirhams (approximately 4 million RMB).
Data shows that the "Golden Visa Program" has attracted over 100000 high net worth individuals to settle down, directly driving up demand for high-end housing.
Abundant educational resources
According to statistics, there are as many as 511 international schools in the United Arab Emirates, with over 200 international schools in Dubai, accounting for more than 40% of the UAE's educational resources. Currently, mainstream international schools in Dubai are mainly divided into English, American, and IB systems.
The teacher resources mainly come from English speaking countries such as Europe and America, with a high degree of internationalization and much cheaper prices than international schools of the same level in China, attracting many international people to come and buy houses to settle down.
