Real Estate Middle East sat down with Mario Volpi, Head of Brokerage at NOVVI Properties, to gain his insights into the current dynamics of the UAE property market. With decades of experience and a deep understanding of regional trends, Mario shares his perspective on market shifts, buyer behavior, and what lies ahead for investors and end-users alike.
Dubai Property Outlook – Where is the Market Heading in 2025?
Dubai’s property market continues to evolve in response to changing global dynamics, local demand and a maturing investment environment. As we look ahead to 2025, the outlook remains positive, but more balanced—compared to the extraordinary growth seen in 2022 and 2023.
The shift toward end-user demand has become increasingly clear. Buyers are no longer just chasing capital appreciation; they’re looking for lifestyle, value and long-term stability. This is reflected in the steady absorption of ready properties in established communities like Dubai Marina, Downtown and JVC.
Off-plan developments remain attractive, especially with developers offering flexible post-handover payment plans. However, buyers must be mindful of oversupply in certain segments, especially studios and one-bedroom apartments in emerging areas.
Luxury and branded residences will continue to dominate headlines in 2025. Prime beachfront and golf-facing properties are in limited supply, keeping demand and prices strong. Additionally, we expect a rise in wellness-oriented homes and sustainable design, aligning with Dubai’s broader commitment to smart city living.
From a macroeconomic perspective, low taxation, high-quality infrastructure and political stability remain Dubai’s key selling points. The recent influx of high-net-worth individuals and entrepreneurs relocating from Europe and Asia reinforces the city’s global appeal.
That said, we anticipate price growth to slow to a sustainable pace, between 3% and 6% in many communities – marking a healthy shift toward market equilibrium. It’s no longer about speculative flips but long-term plays.
As always, informed decision-making and expert advice are key. In 2025, successful investors will be those who adapt to the changing pace, read the data and stay focused on quality over hype.
Renewing a rental contract in today’s Dubai market requires a more proactive and informed approach than ever before. With rents having surged over the past two years in many areas, both tenants and landlords are paying closer attention to legal guidelines, RERA index updates and negotiation tactics.
Rental Contracts – The Dos and Don’ts of Renewing in Today’s Climate
Do know your rights. The RERA rental calculator is the first place to check whether any proposed rent increase falls within the legal parameters. If the increase exceeds the allowed percentage, tenants can legally contest it by filing a complaint with the Rental Dispute Center.
Don’t leave renewal discussions until the last minute. Start the process at least 90 days before your lease expires. This gives both parties time to evaluate their options and reach an agreement, or plan for a move, if needed.
Do keep communication clear and documented. All requests or notices should be in writing, whether it’s by email or registered letter. This creates a record that protects both landlord and tenant.
Don’t assume all landlords are unwilling to negotiate. Many are open to adjusting rent or offering minor improvements (like repainting or maintenance) to keep a reliable tenant, especially in competitive areas with ample supply.
From the landlord’s perspective, tenant retention reduces void periods and maintenance expenses. From the tenant’s side, staying put avoids moving costs and uncertainty. So there’s value in striking a fair deal.
Finally, tenants must factor in upcoming infrastructure developments or community upgrades in their area. These can impact rental values in the near future, either positively or negatively.
In short, renewing a rental contract today requires awareness of legal updates, market dynamics and open dialogue. Both tenants and landlords benefit from approaching the process as a professional agreement, not just a transaction.
Global Investor Interest – Why International Buyers Are Eyeing the UAE and How to Get it Right
Dubai and the wider UAE have firmly positioned themselves as global investment hubs, especially in real estate. In 2025, international interest continues to grow, fueled by factors like tax advantages, high rental yields and strong capital appreciation potential.
The UAE offers what many mature markets no longer can: investor-friendly regulations, safety, high-quality infrastructure and a diversified economy. Visa-linked property purchases are a major draw, particularly the 10-year Golden Visa available for investments over AED 2 million. This provides stability and encourages long-term planning.
Additionally, the UAE has handled global disruptions, pandemics, inflation, supply chain issues—with agility. This has enhanced confidence among global investors, especially from Europe, Russia, India and increasingly, Africa and China.
However, while the headlines often highlight big returns, success depends on due diligence. Here’s how to get it right:
- Partner with a trusted brokerage. Experienced agents understand community dynamics, developer track records and hidden costs.
- Prioritize location and build quality. International buyers may be tempted by off-plan deals with aggressive payment plans, but not all projects hold value long-term.
- Understand the legal framework. While buying is straightforward, navigating service charges, rental laws and visa requirements requires accurate guidance.
- Think beyond ROI. Consider rental potential, tenant profile and exit strategy.
The UAE isn’t just a “buy and flip” market anymore, it’s diverse, regulated and rapidly transforming. For international investors, this means opportunity, but also the need for informed decisions.
At Novvi Properties, we always advise clients to approach the UAE market not as a quick win, but as a strategic move. The right property, backed by the right advice, is the difference between long-term success and a missed opportunity.
Lessons from Experience – Two Decades in Dubai: Mario’s Most Surprising Buyer Mistakes
I’ve been in Dubai for 17 years. I’ve seen almost every kind of buyer—savvy investors, first-timers and unfortunately, those who make costly mistakes. Some patterns stand out and sharing them can help new investors avoid similar pitfalls.
One common mistake is buying based purely on emotion or brand name. While it’s natural to be drawn to a famous developer or a flashy launch, not every high-profile project delivers value or quality. Buyers should always check developer history, community infrastructure and service charges before signing.
Another surprising mistake: ignoring the exit strategy. Many buyers focus on entry—price, payment plan and location—but fail to plan how and when they’ll sell or lease. This is especially risky in communities that aren’t fully developed or lack long-term appeal.
Overleveraging is also an issue. Some buyers stretch themselves financially by taking out high mortgages without accounting for service fees, maintenance, or potential rental gaps. A good deal on paper can quickly turn into a liability if cash flow is tight.
Perhaps the most underestimated error: not seeking proper legal or brokerage advice. I’ve seen buyers sign documents they didn’t fully understand or skip professional inspection of ready properties. A few thousand dirhams saved upfront can lead to major headaches later.
The good news is that Dubai has matured as a market. Regulations are clearer, buyer protections are stronger and transparency has improved. But mistakes still happen—mostly when people rush, follow trends blindly, or ignore advice.
After more than 40 years in the business, my advice is simple: Take your time, ask questions and partner with professionals who treat your investment as if it were their own. Real estate isn’t just about property, it’s about planning, people and purpose.
