After two consecutive years of steep rental hikes and soaring property prices, Dubai’s real estate market is now entering a period of stability and balance. The city’s housing sector is showing signs of cooling, not as a slowdown in demand, but as a result of increased supply and a more mature, sustainable market dynamic.

For Tenants: More Choice and Slower Rent Growth

Rental growth has eased to 2.1% in Q3 2025, down from 5.5% in the previous quarter, signaling a notable moderation in rental escalation. While the annual rental increase remains at 14.8%, the pace of growth has slowed considerably compared to the previous surge.

The ongoing completion of new apartment developments across key communities has been a major factor in this shift. The additional housing supply has provided tenants with more options, increased bargaining power, and improved access to different price points. Landlords, in turn, are becoming more flexible with pricing and lease terms to attract tenants in a more competitive environment. This trend is particularly evident in mid-range and upcoming suburban areas, where renters are benefiting from greater affordability and incentives such as flexible payment schedules or rent-free periods.

For Buyers and Investors: Apartments Take the Spotlight

On the sales front, apartments continue to dominate market activity. Total apartment transactions reached nearly AED 93 billion in Q3 2025, reflecting a 22% rise in transaction volumes and a 35% increase in off-plan sales compared to the previous quarter. Off-plan projects now represent roughly 70% of all real estate deals, underlining strong investor confidence in Dubai’s future developments and long-term potential.

In contrast, the villa and townhouse segment has witnessed a 30% decline in sales, suggesting that the surge in demand for spacious homes seen during and after the pandemic is cooling. Buyers are now gravitating toward more affordable and practical apartment investments, especially in well-connected urban zones and waterfront communities that promise strong rental yields and capital appreciation.

Market Outlook: Sustainable Growth Ahead

The average property price in Dubai currently stands at approximately AED 1,664 per square foot, almost double the levels recorded in 2020. This reflects not only market strength but also the city’s evolution into a global real estate hub attracting investors from around the world.

So far, around 28,500 new residential units have been delivered in 2025, with apartments making up 85% of the total. Another 200,000 homes are expected to be completed by 2027, ensuring a more balanced supply pipeline that will help maintain price stability.

This steady stream of new projects — combined with Dubai’s investor-friendly regulations, high rental yields, and strong economic growth — is creating a more predictable and sustainable market environment for both residents and investors.

Conclusion

Dubai’s property market is evolving from an era of rapid escalation to one of measured stability. Tenants now enjoy more options and improved affordability, while investors benefit from long-term growth potential and a diversified real estate landscape.

The city’s real estate sector remains one of the most attractive globally — not for quick speculative gains, but for those seeking enduring value, consistent demand, and resilient returns in a dynamic world-class market.

In a bold move to expand its footprint across the region, DAMAC International has announced its first-ever project in Iraq — the stunning DAMAC Hills Baghdad.

The project marks a historic milestone for both DAMAC and Iraq’s growing real estate sector, introducing a new benchmark for luxury living in Baghdad.

🏗️ About the Project

DAMAC Hills Baghdad covers a vast 6.2 million square metres, located in a prime area near Abbas Ibn Firnas Square, just five minutes from Baghdad International Airport, ten minutes from the Green Zone and Al-Mansour district, and fifteen minutes from the city’s top hotels.

The first phase will feature three exclusive residential clusters — Misk, Fayrouz, and Lamar, blending modern architecture with elements of Iraq’s rich cultural heritage. Each villa and apartment is designed to offer residents an elevated lifestyle with world-class infrastructure and amenities.

🌿 A Community Built for Modern Living

This luxury master community will include central parks, a health club, leisure areas, restaurants, and cafés, all within a secure, gated environment. To ensure reliability and sustainability, the project also features its own water system, on-site power substation, and solar-powered heating — along with 24/7 security and maintenance.

According to Majid Al Ghazali, Senior Vice President of Projects at DAMAC, the launch reflects the company’s long-term vision to bring its signature lifestyle developments to emerging markets that are entering a new phase of growth.

💰 Investment Outlook: What It Means for DAMAC and Iraq

DAMAC Hills Baghdad represents more than a property launch — it’s a strategic market entry into a country undergoing transformation. For DAMAC, it signals diversification beyond traditional markets like the UAE, Saudi Arabia, and Europe. For Iraq, it marks a step toward urban renewal and the government’s ambitious US $450 billion investment plan aimed at boosting infrastructure and attracting foreign investors.

Luxury real estate is still underdeveloped in Iraq, meaning DAMAC enjoys first-mover advantage — positioning itself to capture demand from affluent locals and regional buyers seeking premium, master-planned communities.

⚠️ Challenges and Considerations

Of course, new markets bring new challenges. Iraq’s property sector still faces political and regulatory risks, infrastructure gaps, and uncertainty in luxury housing demand. Other considerations include currency volatility, construction logistics, and resale liquidity — factors developers and investors must manage carefully.

Still, DAMAC’s proven track record across the Middle East gives it an edge in executing large-scale projects with high design and operational standards.

🔍 The Bigger Picture

DAMAC Hills Baghdad is more than a development — it’s a symbol of confidence in Iraq’s potential. As Baghdad opens up to foreign investment, projects like this could redefine the city’s skyline, attract global attention, and pave the way for other international developers to follow.

With its size, ambition, and strategic timing, DAMAC’s first step into Iraq could be one of the region’s most significant real estate stories of the decade.

What’s happening:

• The RTA of Dubai is celebrating its 20-year anniversary with a month-long campaign offering a wide range of gifts, discounts and special experiences for commuters and residents.
• Offers include discounts on movie tickets and online shopping orders, in addition to surprise giveaways at transit stations.

Key offers & dates:

• From Nov 1 to Nov 5, moviegoers can use the promo code RTA20 to get 20% off cinema tickets.
• The same promo code gives 20% off online orders (via the platform mentioned) during the same window.
• On Nov 1, at AL Ghubaiba Bus Station and Insurance Market Metro Station, visitors can participate in a “20-second gift grab” contest, grabbing gifts from electronics to chocolates.
• Also, limited-edition nol cards marking the 20th anniversary will be available from Nov 1 to 30 at all Metro stations.
• Various other activations: photobooths at BurJuman Metro station, giveaways at certain station kiosks, and a photo challenge for tourists arriving at Dubai airport.

Purpose & message:

• The RTA aims to thank commuters and residents for their support over the years and make everyday travel more fun, by turning transport hubs into places of celebration.
• This campaign also builds awareness of the RTA’s journey and its role in Dubai’s transport network over the past two decades.

🏰 Overview

A striking landmark in Ras Al Khaimah, the Al Qasimi Palace, also nicknamed the “Haunted Palace”, has been listed for sale at Dh 25 million. Built in 1985, the mansion blends architectural elegance with eerie legend, making it one of the UAE’s most mysterious properties.

🏗️ Origin and Architecture

The palace was originally commissioned by Sheikh Abdulaziz bin Humaid Al Qasimi, a member of the Ras Al Khaimah royal family.

• It spans four floors and 35 rooms, covering nearly 20,000 square metres.
• The interiors are richly decorated with imported chandeliers, Italian marble, and hand-crafted details from across Morocco, India, and Persia.
• A glass pyramid crowns the roof, giving the building a distinctive silhouette that can be seen from miles away.

Every corner of the mansion reflects a mix of cultural influences — Islamic calligraphy, classical motifs, and lavish finishing — showcasing the late Sheikh’s love for global art and design.

👻 The Legend of the “Haunted Palace”

Despite its grandeur, the Sheikh and his family never lived there. Soon after completion, family members reportedly raised objections to the numerous statues and figurative artworks inside the home. The Sheikh abandoned the property, and it remained empty for over three decades.

During that time, stories began circulating among locals — of flickering lights, strange sounds, and ghostly sightings. Some said jinn inhabited the palace, others believed the spirits were connected to the art pieces left behind.

The building’s isolated position on a hill, combined with its unusual architecture, only deepened its haunted reputation.

🧱 Restoration and Public Access

In recent years, the palace was purchased by businessman Tareq Ahmad Al Sharhan, who undertook extensive repairs and reopened it to the public.

• Visitors can now explore the rooms between 9 AM and 7 PM daily.
• The owner describes it not as haunted, but as “a piece of heritage worth preserving.”

The restoration aimed to maintain its original charm while making it safe for tourism, adding lighting, guided tours, and security measures.

💰 The Sale

Now, the Al Qasimi Palace is officially on the market for Dh 25 million.

• The sale is part of an investment strategy by the current owner.
• According to Ras Al Khaimah property laws, only Emirati citizens are eligible to purchase it.

The property is located in Al Dhait, overlooking Ras Al Khaimah city — a site many locals still view with fascination and curiosity.

🌙 Cultural Impact

Over time, the “Haunted Palace” has become a popular tourist attraction, drawing both thrill-seekers and architecture lovers. Despite the spooky legends, many who have visited describe the mansion as peaceful and mesmerizing rather than frightening.

✅ Market outlook & key trends

• The rental market in Dubai is heading into 2026 with steady growth, but the pace of rent increases is expected to be more moderate compared to recent years.
• Demand remains strong in well-connected, master-planned communities thanks to ongoing population growth, business inflows and relocation of high-income professionals.
• Rental performance is becoming more segmented: newer, higher-quality projects (modern layouts, good amenities) are outperforming older properties which are showing signs of stabilization.
• Affordability and space are driving some tenants to relocate from central districts (like Downtown, Business Bay) to emerging areas such as Meydan, Jumeirah Village Circle (JVC), Dubailand and Dubai South.

🧾 What tenants should watch when renewing

• Tenants should check the Dubai Land Department (RERA) rental index and comparable listings in their area before negotiating, since rent caps exist to ensure fairness and prevent sudden spikes.
• It is important to clarify the lease terms: maintenance responsibilities, payment schedule, notice-periods, etc.
• Landlords are showing more flexibility (longer leases, multiple cheque payments, incentives) in order to retain good tenants rather than chase short-term gains. Committing to a 12-month (or multi-year) lease may provide better negotiating leverage for tenants.

🏠 Older vs. newer properties

• Older properties in less prime condition — e.g., older infrastructure or amenities — are seeing stabilisation in rents rather than strong growth.
• New developments with modern design, good amenities and energy-efficiency continue to command a premium and outperform older stock.

🔍 Outlook for 2026

• The 2026 rental market in Dubai is shifting from short-term speculative growth to a focus on value, stability and long-term relationships between landlords and tenants.
• For tenants: this means better negotiation opportunities. For landlords: it means focusing more on quality property and tenant retention rather than rapid rent hikes.

The UAE Federal Supreme Court has ruled that banks are not allowed to charge compound interest — meaning they cannot charge “interest on interest.” This marks a major clarification in how banks must calculate and collect loan payments within the UAE.

💰 What the Court Said

The court emphasized two key points:

1. Total interest cannot exceed the principal amount of the loan.
2. Banks may charge interest at the contractual rate while the account is active, but only simple interest after the account is closed.

This effectively bans compounding — where unpaid interest itself becomes interest-bearing — a practice that can dramatically increase what borrowers owe over time.

⚖️ Case Background

• A borrower had taken two loan facilities totaling AED 700,000.
• The bank claimed AED 1.919 million including interest and late-payment charges.
• Lower courts initially ruled that the borrower owed less, capping the interest.
• When the case reached the Supreme Court, it found that accrued interest (AED 860,147) already exceeded the original loan, which amounted to compound interest.
• The court ruled that this was illegal under UAE law.

📊 Implications for Banks

Banks can still:

• Charge simple interest on principal.
• Impose reasonable delay or late-payment interest, as long as it does not exceed the loan amount.

But they cannot capitalize unpaid interest or add it to the principal to generate more interest. Doing so would violate the court’s decision.

🧾 Implications for Borrowers

• Borrowers now have legal protection against spiraling debt caused by compounding.
• Anyone whose loan balance seems to grow even when payments are made should check if the bank is compounding interest.
• Borrowers can challenge such calculations under this new precedent.

🏦 Wider Impact

• This ruling reinforces transparency and fairness in the UAE’s lending system.
• It ensures that loans remain proportionate and do not become unmanageable through accumulated interest.
• The decision also serves as guidance for banks, courts, and regulators on what’s acceptable under UAE banking and civil law.

📌 In Short

The UAE Supreme Court has made it clear: No bank can charge more interest than the original loan amount, and compound interest is not allowed.

This ruling protects borrowers, enforces fair lending standards, and reshapes how banks manage overdue or extended loan accounts across the UAE.

Uncertainty has crept back into global markets. With ongoing conflicts, stubborn inflation, and constant financial swings, investors everywhere are wondering: Where does my money actually belong right now?

Keeping too much cash feels safe — until inflation quietly eats it away. Precious metals like gold and silver provide comfort, but they don’t grow. Meanwhile, Dubai’s property market has been steadily moving upward, driven by genuine demand, limited land, and international confidence.

This isn’t a sales pitch — it’s a reality check. Let’s take a grounded look at today’s investment landscape, and why Dubai real estate continues to earn serious consideration.

1. The Big Picture: Comparing Asset Classes

Every investor juggles the same four choices: cash, metals, equities, and property. Here’s how they stack up:

Asset Advantages Drawbacks Recommended Use Cash Flexible and instantly available Quickly loses value to inflation 5–15% for liquidity and emergencies Gold & Silver Proven store of value in crises No income, high volatility 5–10% for protection and diversification Equities / Businesses Strong growth and dividend potential Subject to market mood swings 40–60% for long-term wealth building Real Estate Tangible, income-producing, inflation-resistant Harder to sell, management required 20–40% as a stable wealth foundation

During volatile cycles, real estate tends to hit the sweet spot between steady income and capital preservation — a mix few other assets can offer.

2. Why Capital Is Shifting Toward Property

Across global markets, investors are rediscovering the comfort of tangible assets — and Dubai is high on that list. Here’s what’s fueling the shift:

• Inflation Buffer: As living costs rise, so do rents and property prices, protecting purchasing power.
• Leverage Power: Borrowing at fixed rates lets investors benefit as inflation reduces real debt value.
• Two Income Streams: You earn from both rental returns and long-term appreciation.
• Trust & Transparency: Property is visible and verifiable — unlike digital wealth that exists on a screen.
• Finite Supply, Rising Demand: Dubai’s expanding population, booming tourism, and restricted land availability make it a long-term play.

In short, Dubai real estate offers something rare — stability with upside potential.

3. The Risks You Shouldn’t Ignore

No smart investor assumes real estate is risk-free. The secret is managing those risks before they manage you.

Common mistakes include:

• Taking on too much debt and leaving no margin for interest rate changes.
• Overlooking hidden expenses like maintenance and service charges.
• Buying emotionally instead of analyzing data.
• Chasing last year’s “hot location.”
• Ignoring exit options and liquidity needs.

The smarter move is to rely on facts, not feelings. Trusted agencies like fäm Properties use verified data from DXB Interact to guide investors based on real market evidence — not assumptions or hype.

4. Building a Smarter Property Portfolio

A well-built portfolio is like a balanced recipe — different ingredients create long-term strength.

• Set your timeline: If you need returns soon, focus on liquidity. For long-term goals, look at growth assets.
• Mix income and appreciation: Blend steady rental properties with select off-plan units for capital gain.
• Choose resilient areas: Locations near infrastructure, business hubs, or waterfronts hold value best.
• Plan for pressure: Run your numbers assuming slower rent growth or higher rates.
• Use expertise: Engage skilled agents, legal advisors, and property managers to protect your returns.

5. Why Dubai Remains a Global Standout in 2025

Dubai continues to attract global investors — and not by coincidence:

• Strong legal framework: Transparent regulations, digital processes, and escrow laws ensure trust.
• Impressive yields: Rental returns averaging 6–9% outshine most major cities.
• World-class infrastructure: Connectivity, airports, and consistent development drive long-term demand.
• Golden Visa advantage: Residency options tie investment to lifestyle benefits.
• International credibility: Dubai’s market is now seen as mature, regulated, and data-backed.

In short, Dubai isn’t a speculative play anymore — it’s a disciplined, performance-driven market supported by fundamentals.

6. Smart Investors Diversify — Not Gamble

Good investing is about balance, not extremes. You don’t need to choose only one asset; you need the right blend.

A balanced portfolio for 2025 could look like:

• 10% — Cash (for agility)
• 10% — Precious metals (for security)
• 50% — Equities or private businesses (for growth)
• 30% — Real estate (for stability and income)

This mix cushions you against volatility while positioning you to benefit from Dubai’s continued real estate momentum.

7. Closing Thoughts: Choose Clarity Over Fear

Timing the market is impossible — clarity is what counts. Gold may rise, but it doesn’t pay rent. Cash feels safe but quietly depreciates. Stocks can soar one week and sink the next.

Real estate, when done right, provides something different — steady, visible wealth creation. It earns while you sleep, protects against inflation, and in Dubai’s case, connects you to one of the world’s fastest-evolving economies.

For investors who value real returns over speculation, Dubai remains more than an opportunity — it’s a strategy.

During peak hours, it’s chaos. What once took 15 minutes can now stretch to 45. For anyone moving around the city daily, the difference between leaving at 7:15 or 7:45 can make or break their day.

But step back for a moment — traffic isn’t just a problem.

It’s a sign of growth. It means Dubai is thriving: more people, more business, more energy. Congestion grows where opportunity grows.

Still, the cost is real.

Traffic drains time — and time fuels productivity. Productivity drives performance, and performance shapes everything from business results to mental well-being. Every extra hour on the road is an hour not spent thinking, creating, building, or living.

Commute time is now redefining real estate value.
We’re entering a phase where connectivity matters as much as the address itself.

People are choosing homes — and even jobs — based on how easily they can move between home, work, and lifestyle destinations. The era of buying a bigger villa only to spend an extra hour in traffic is ending.

The new luxury is proximity — living close to where life happens.

Globally, longer commutes are proven to lower productivity, satisfaction, and retention. In Dubai, the same pattern is emerging: the more time people lose in traffic, the more they value communities that give them time back.

This isn’t just about convenience — it’s about what’s driving the next wave of property demand.

As Dubai evolves, projects and neighborhoods that offer smarter, faster access to business and leisure hubs will lead the market.

The next decade of real estate will be defined by connectivity.

The upcoming Dubai Metro Blue Line — linking Business Bay, Creek Harbour, Silicon Oasis, and Dubai Marina — is projected to cut congestion by nearly 20% and boost property prices in connected areas by 20–25%.

That’s not speculation — it’s what happened with past metro expansions.

Add hybrid work, AI-driven traffic management, and urban decentralization, and the future becomes clear:

Mobility and real estate are merging into a single conversation.

For businesses and talent, the impact is massive. Recruitment, retention, and performance are all being reshaped by one invisible factor — time lost in transit.

The best people now seek balance, not burnout. Companies demanding long commutes will struggle to keep top talent — regardless of brand or pay.

In late September 2025, the U.S. Federal Reserve reduced its benchmark interest rate by 0.25%—its first cut of the year. Because the UAE dirham is pegged to the U.S. dollar, the Central Bank of the UAE (CBUAE) immediately followed suit, trimming its base rate from 4.40% to 4.15%. Though recent, this move has already stirred optimism in Dubai’s property sector. With borrowing costs now slightly lower, discussions among investors and homebuyers are turning toward affordability, opportunity, and the potential for a new wave of real estate growth.

Why the UAE Mirrors U.S. Rate Decisions

The UAE’s monetary policy is closely linked to that of the United States due to the long-standing dirham–dollar peg. Any rate change by the Federal Reserve typically prompts a matching adjustment by the CBUAE to preserve currency stability and prevent capital imbalances. By cutting rates, the CBUAE ensures that domestic credit conditions remain attractive for both consumers and businesses.

For real estate, this alignment translates into more affordable mortgage financing, reduced monthly payments for homeowners, and an expanded pool of qualified buyers.

Market Overview: Insights from DXB Interact

While it’s too early to gauge the full effect of the recent rate cut, DXB Interact’s data shows that Dubai entered this period with strong momentum. The first half of 2025 recorded record-breaking sales and mortgage activity—demonstrating a robust foundation even before the rate reduction.

According to the DXB Interact Mid-Year 2025 Report:

• Property transaction volumes rose 22.5% compared to H1 2024.
• Total sales value increased by 40.1%, reflecting sustained confidence from both investors and end-users.
• Mortgage activity climbed 38%, highlighting a growing appetite for leveraged purchases.
• April and May 2025 each exceeded AED 60 billion in sales—setting new monthly records for Dubai’s property market.

Together, these figures underscore the market’s resilience and liquidity, positioning it to benefit further from cheaper financing.

How Lower Interest Rates Influence Real Estate

1. More Affordable Mortgages A 0.25% reduction might seem minimal, but the savings accumulate over time. For instance, a 25-year mortgage of AED 2 million at 4% interest costs about AED 10,567 per month. Lowering the rate to 3.75% reduces the payment by nearly AED 300 monthly—equivalent to roughly AED 90,000 over the loan term.

2. Increased Borrowing Capacity Lower rates mean higher loan eligibility. Buyers who previously qualified for AED 1.8 million can now access around AED 2 million, allowing for upgrades to larger homes or prime locations.

3. Better Opportunities for First-Time Buyers First-time buyers tend to be most sensitive to rate changes. Even small reductions in monthly mortgage costs can make ownership feasible. Combined with flexible developer payment plans and long-term market confidence, this group could see significant growth in 2026.

4. Relief for Renters Rents across Dubai have surged in recent years, pressuring household budgets. As mortgages become more affordable, many tenants may find buying comparable—or even cheaper—than renting. This shift could gradually reduce rental demand while bolstering the ownership market.

Outlook: A Well-Timed Boost for a Strong Market

Dubai’s real estate sector entered this cycle from a position of strength—supported by population growth, investor confidence, and government initiatives like the Golden Visa program. The recent rate cut adds another tailwind.

• For buyers, it means lower payments and greater purchasing power.
• For tenants, it opens the door to homeownership.
• For developers and agents, it signals a potential surge in demand across multiple price segments.

While a single rate cut won’t transform the market overnight, it reinforces Dubai’s reputation as a stable, opportunity-rich global property hub. Over the coming quarters, the key question will be how fast this monetary easing converts into real activity—but the direction is already clear: cheaper financing, stronger confidence, and continued growth.

The UAE has introduced a new set of customs regulations for passengers entering and leaving the country. The updated rules, issued by the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP), are designed to ensure smooth travel, transparency, and security at all UAE entry and exit points.

Cash and Valuables Declaration

Travelers carrying more than AED 60,000 (or its equivalent in foreign currency) must declare the amount when entering or leaving the country. This also applies to bearer negotiable instruments, precious metals, or valuable stones. Failure to declare may result in confiscation or penalties, so it’s best to report these amounts through the official disclosure channels.

Personal Items and Gifts

Passengers are allowed to carry gifts worth up to AED 3,000 without paying customs duties. These items must be for personal use and not intended for commercial purposes. Frequent travelers or those repeatedly bringing in similar goods will not be eligible for this exemption.

Tobacco Products

The UAE allows travelers to bring in limited quantities of tobacco products—such as up to 200 cigarettes or an equivalent amount of cigars or pipe tobacco. Anything beyond these limits will attract customs duties.

Prohibited Items

Certain goods are completely banned from entry into the UAE. These include:

• Narcotics and controlled substances

• Gambling devices

• Raw ivory and counterfeit currency

• Used or retreaded tires

• Radioactive materials

• Laser pens with red beams

• Printed or visual materials that violate religious or moral values

• Materials contaminated by nuclear or radioactive dust

• Paan, betel leaves, and similar banned products

Restricted Goods

Some items can only be imported with prior approval from specific UAE authorities. These include:

• Live animals and plants

• Fertilizers and pesticides

• Firearms, ammunition, explosives, and fireworks

• Prescription medicines and medical devices

• Wireless transmitters and communication equipment

• Alcoholic beverages and cosmetics

• Raw diamonds and nuclear-related materials

Approvals must be obtained from the relevant bodies, including ministries such as Defence, Interior, Health and Prevention, Climate Change and Environment, and others.

Smooth Travel, Safer Borders

These updated regulations aim to make travel in and out of the UAE more secure and transparent for everyone. By staying informed and following customs rules, travelers can enjoy a smoother experience while helping protect the UAE’s borders and public safety.