Weekly Insights for Dubai Property Investors: September 19, 2025
- Stephen James Mitchell MBA
- Sep 19
- 6 min read
This is the first edition of my Weekly Insights for Dubai Property Investors. Each week, I’ll be sharing a clear and data-driven review of the latest economic, financial, and real estate developments that matter most to investors.
For me, this is about more than just reporting the news. I want to help you make sense of the numbers, see the connections, and highlight where the best opportunities may be—whether in residential, commercial, or mixed-use property.
This first update comes at an especially interesting moment: Dubai has just seen a rate cut, record-high property transactions, strong tourism numbers, and fresh momentum in non-oil GDP growth. Together, these signals paint a picture of a market that continues to deliver resilience and opportunity.
Dubai’s Economic Growth Is Gaining Pace
A good place to start is with the broader economy. This week’s reports confirmed that Dubai’s non-oil economy is pressing ahead. The Purchasing Managers’ Index rebounded to 53.3 in August 2025, signaling expansion. UAE non-oil activity now accounts for 77.3% of GDP, reflecting the success of diversification strategies.
At the same time, the UAE is betting big on artificial intelligence. By 2031, AI is expected to contribute 20% of non-oil GDP. To put weight behind this target, fifty Chief AI Officers recently toured the United States to forge partnerships with tech giants like Google and Microsoft. When I see initiatives like this, I don’t just think about the tech sector—I think about the knock-on effect for commercial property demand, particularly offices.
Demand for prime office space is already outpacing supply. JLL reported vacancy rates in Dubai at just 7.7% (a record low), with rents up 17.3% year-on-year. DIFC and Downtown Dubai are practically full. For investors, this means commercial units in central locations are commanding higher yields and appreciating in value.
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Wealth and Population Trends Driving Demand
The second major theme this week is wealth migration. Dubai now ranks fourth in the EMEA region for liquid wealth, behind only London, Paris, and Milan. The city is home to 86,000 millionaires and $1.1 trillion in liquid assets as of mid-2025. That’s a 110% increase in investable wealth over the last decade.
High-net-worth migration shows no sign of slowing. More than 35,000 millionaires have moved here over the past ten years, and Dubai now hosts 6,700 tech millionaires and five tech billionaires. With no capital gains tax and robust infrastructure, these numbers are expected to double by 2035.
Population growth adds another layer. Dubai’s resident count is expected to surpass 4 million in 2025 (3,984,000 reported in July). That means more households, more demand for mid-market rentals, and a steady flow of tenants into new developments.
When I speak with family offices, many are focused on securing premium commercial or mixed-use properties—not only as investments but also for their own use. Over 250 family offices have been established here since COVID, all requiring prime locations. For international investors, this wealth concentration reinforces Dubai’s position as a safe-haven market compared to Riyadh or Doha.
Tourism Surges Ahead of Expectations
Tourism has always been one of Dubai’s strongest pillars, but the most recent numbers are exceptional. UAE hotels hosted 16.1 million guests in H1 2025, up 5.5% year-on-year. That translated into 56 million hotel nights, a rise of 7.3%. Dubai itself accounted for 9.88 million visitors, up 6%.
The hospitality sector was valued at $23.9 billion in 2024 and is forecast to reach $37.7 billion by 2033. Occupancy rates are sitting at 81%, far above global benchmarks—London (56%), Paris (51.2%), New York (55.3%).
What does this mean for property investors? Quite simply, short-term rentals around high-traffic areas remain excellent opportunities. Tourism demand supports high occupancy and strong nightly rates. Add to that the rising global preference for eco-friendly stays, and properties designed with sustainability in mind will likely outperform.
Book a One-on-One Strategy Session: If you’re considering short-term rental investments, I can help identify projects with the strongest tourism-linked demand. Schedule a consultation today.
Infrastructure and the Etihad Rail Effect
Dubai’s infrastructure expansion is another factor investors should not ignore. The Etihad Rail project is reshaping logistics and connectivity, with ripple effects on property values. Areas like Dubai South, Dubailand and Jumeirah Village Circle are already seeing rising demand.
Retail is evolving too. JLL’s latest data shows Dubai’s retail vacancy rate at 7.5%, with prime rents up 15.1% to AED 826 per sq. ft. For anyone considering retail investments, well-placed units near transport hubs or established communities are capturing premium rents.
Meanwhile, Abu Dhabi recorded 40% growth in real estate transactions in H1 2025, hitting AED 51 billion. This regional growth strengthens Dubai’s positioning as the commercial capital of the UAE.
Financial and Market Updates: Cheaper Finance, Higher Demand
The headline this week was the UAE Central Bank’s decision to cut its base rate by 25 basis points to 4.15%. This move followed the US Federal Reserve’s cut on September 17.
For local investors, this translates into cheaper mortgages and larger loan approvals. A buyer qualifying for Dh1 million previously may now qualify for Dh1.2 million. For international investors, the weaker US dollar makes Dubai properties more affordable in euro or sterling terms.
This dovetails with record transaction activity. In August 2025, property deals reached AED 42.4 billion, up 17% year-on-year. In H1 2025 alone, Dubai logged 99,146 transactions, nearly four times the levels of H1 2021. Off-plan sales dominate, making up more than 70% of the total. Prices are up 38% since 2021, and rental yields still average 6–8%, which outpaces most global markets.
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Deal of the Week: Retail Unit, ArtHouse NYC, Al Marjan Island
This week’s featured opportunity is a rare cancellation retail unit in the iconic ArtHouse NYC on Al Marjan Island:
Prime spot opposite Marjan World at the building entrance.
Approved for coffee shop with projected net rental yields of 7–9%.
AED 1.5M (AED 3,500 psf), far below recent island sales at AED 5–6k.
Special 40/60 payment terms secured.
Strong capital appreciation from the Wynn Casino opening in 2027.
Act fast—retail units like this are virtually never available at this price and location. Contact me today to secure it.
Turning Weekly Market Data into Investor Opportunities
Dubai’s property story is increasingly one of resilience and sustained momentum. We’re seeing consistent signals across the board—record transaction volumes, rising wealth migration, expanding infrastructure, and steady tourism growth. These aren’t short-term fluctuations; they’re the foundations of a market that continues to reward both long-term holders and tactical investors.
Having lived and worked in Dubai for almost 20 years, I’ve experienced three full property cycles. That perspective is invaluable because it allows me to distinguish between short-lived hype and genuine opportunities. I know where investors can capture strong rental yields without overexposure, and where capital appreciation potential aligns with long-term fundamentals.
My focus is always on helping clients achieve the right balance—maximizing returns while minimizing risk. Sometimes that means securing below-market deals with clear upside, and other times it means structuring a portfolio that blends income-generating assets with long-term growth plays.
For investors—whether local or international—the key is not just having access to opportunities, but knowing which ones are most resilient in different market conditions. That’s the insight I aim to deliver through these weekly updates and in one-on-one strategy sessions.
Conclusion
Dubai continues to prove itself as one of the world’s most attractive investment markets, combining economic strength, global appeal, and investor-friendly policies. The opportunities are there, but the difference lies in how you approach them.
If you’d like to explore the market in more depth, I’d be delighted to share my experience and help you identify the strategies that best fit your goals. With the right guidance, Dubai offers not just strong returns, but also long-term security in an ever-changing global economy.Whether your goal is capital appreciation, yield stability, or gaining exposure to the right launches at the right time, I can provide the data, access, and structure to help you move decisively.
📞 No pressure, no sales pitch—just a focused, informed conversation about your investment goals. Let’s talk!