What’s Next for MENA Real Estate? Predictions for 2025

Growth, growth and more growth!

It might sound monotonous but that’s the overall consensus for the MENA’s real estate market in 2025. It’s a trend that rings true in almost every aspect especially as Dubai’s population is expected to increase to 4 million by the start of 2026.

The growth boom has led MENA’s foremost experts to predict that talent, tech and FDI might just be the headline trends for this year.

Population Growth & Demand for Talent

For Anna Skigin, founder and CEO at Frank Porter it’s all about growth for the real estate market in 2025. Attracting and retaining talent, coupled with solid investments will continue to be a major boon for the UAE.

?“The country is not showing any signs of slowing down with numerous incentives launched to promote life in the UAE (ex. visa schemes, etc.). In turn, the property market continues to grow. Saudi Arabia continues on its growth trajectory as well - attracting businesses, tourists and investment. 2025 will continue it's positive 2025 property growth,” she says.

The region, particularly the UAE, will move towards a more sustainable growth trajectory, says co-founder and CEO of Prop-AI, Ranime El Skaff. Dubai is expected to continue to witness healthy growth in 2025 with a moderate slowdown in price growth from +10.9 per cent in 2024 to a more sustainable growth rate below 10 per cent.

“While the pace of price increases is anticipated to decrease,?we expect?prices will continue to rise, particularly in high-demand?and completed?areas?with fixed supply. This trend aligns with the market's supply-demand dynamics and the projected population growth, which is expected to add another 200,000 people?in 2025, bringing the total population to?over?4 million by the end of the year in Dubai,” she says.

If you’re wondering about the decrease in mortgage rates, El Skaff says it’s expected to support the continued demand for property investments and signals a move towards home ownership.

FDI & the Luxury Market Stay Strong

With an attractive investment market coupled with a clear, government-backed long-term vision, El Skaff maintains that?Dubai?is well positioned to continue to?attract substantial FDI, thanks to the region’s political stability, business-friendly environment, and the ambitious government strategies, including D33 as well as Dubai 2040 Urban Masterplan.

“Dubai remains an affordable market relative to other global cities, with the price per square foot in Dubai (439?USD/sqft?| 1,610 AED/sqft) well below cities like Paris (990?USD/sqft) and London (827?USD/sqft). Furthermore, Dubai’s?beneficial taxation laws?positions it as an even more attractive option for investors, especially given rising taxes in markets such as the UK and Canada,” she says.

El Skaff’s predictions for off-plan sales reveals a slowdown in 2025 with a shift to delivery on an unprecedented scale. Although?more housing supply is required, she anticipates a slowdown in off-plan sales?in?2025, which accounted for 108,000 of the 170,000 transactions in 2024.

It’s no surprise that Dubai’s luxury market will continue to maintain its competitiveness driven by HNWI and thanks to a shortage of globally competitive ultra-luxury properties.

“Dubai will continue to solidify its position as a luxury real estate hub. In 2024, the 10-50 million AED segment performed exceptionally well, with?3,013?transactions. However, the 50+ million AED segment showed signs of?slowing?compared to previous record years. This is?largely due to the ongoing shortage of ultra-luxury properties and high-end offerings in the market,” said El Skaff.

The End of the Seller’s Market?

Investors or homebuyers looking to sell in 2025, take note. El Skaff reveals that the year marks the beginning of the end of the seller’s market that dominated over the last few years. By the end of 2024, Prop-AI observed signs of a shift from a seller’s market to a more neutral one.

“As a result, we have started to see more sellers adjusting their expectations, and the gap between asking prices and fair market value is?reducing.?In December 2024,?fewer than 30% of listings?were?priced above fair market value,?compared to closer to 50% at the peak of the seller market,?creating more favorable conditions for buyers in 2025,” she advises.

Smart Buildings, PropTech, & ConTech Take Over

Technology is set to dominate yet again. The steady rise of smart buildings, proptech and contech across the region – driven by the urgency for energy efficiency and sustainable buildings and material – has led to an increase in the demand for talent in the region.

?“This has led to an increase in demand for 'smart' and 'technical talent'. However, there is a mass skills shortage, which has led to large developers and construction firms headhunting talent from abroad with an increase in contract jobs for expat workers ie Neom, The Line. We have seen a steady increase of data and saas sales roles of about 20% per quarter,” says Louisa Dickins, co-founder of LMRE, a specialist global proptech recruitment consultancy.

?Looking at proptech in 2025, Dickins says that platforms that offer online property marketplaces, virtual property tours, and even AI-driven property valuations are growing fast.

?“For instance, in?Dubai, platforms like?Property Finder?and?Bayut?are not just about listing homes – they also use AI to give users personalised recommendations, estimate property prices more accurately, and even predict investment trends. It's changing how people look for properties and how developers and investors make decisions,” she says.

?Dickins and her team have also observed the seamless efficiency of blockchain technology that can make buying and selling properties faster, more secure, and more transparent by eliminating middlemen and reducing paperwork.?

?Contech also continues to be a game changer for the construction industry, adds Dickins.

“In recent years, the Middle East has seen significant growth in?construction technology with innovation and technology transforming how projects are planned, designed, and executed. The region has been a hotbed for adopting cutting-edge construction tech, fueled by major infrastructure projects and a push towards sustainability and efficiency.”

?As more of these smart technologies become integrated into buildings and real estate transactions, the market in the Middle East will likely become even more tech-driven, she believes. “So, in short, the Middle East real estate market is embracing the tech wave big time, with smart buildings and proptech driving efficiencies and enhancing experiences for both investors and everyday buyers. It's making the entire process more transparent, sustainable, and user-friendly.”

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Looking Ahead

As 2025 unfolds, the MENA real estate market is set for continued transformation. Sustainable growth, increased FDI, and tech-driven advancements will shape the industry, offering new opportunities for investors, developers, and homebuyers alike. Whether you’re considering property investments, exploring PropTech innovations, or navigating the evolving market landscape, this year promises to be one of progress and innovation.

What are your thoughts on the future of real estate in MENA? Join the conversation and share your insights!

Contributed by: Teneshia Naidoo