Dubai that inspires: Trends, achievements and plans
We are delighted to introduce a regular analytical column by Konstantin Lyutovich, the founder of Livrichy Real Estate. In this article, the author shares his expert perspective on the Dubai property market, analysing key trends, achievements, and plans. Drawing upon his extensive experience in the luxury real estate sector, he discusses the market's transformation, the growing demand in both the premium and mid-range segments, as well as the ambitious new projects that will shape Dubai's landscape in the coming decade.
The end of 2024 was a special milestone for me — a time of reinvention and new achievements. As I look ahead to 2025 and reflect on the journey that has been made, I can clearly see how the Dubai real estate market has transformed over the years. An important step in the development of Livrichy Real Estate was the move to a spacious office in the business centre of the emirate, which allowed us to expand the team and open a new promising department — the commercial real estate department. This move is significant as demand for commercial properties, be it office space, retail space or restaurants, remains stable in any economic situation. In our new office, we have also created a special area for tea ceremonies, an important part of our corporate culture that I bring from my experience of living in China.
Expanding our team and modernising our service are natural results of our development, but the main achievement is that we have managed to maintain our key principle: an individual approach to each client.
In 2024, Dubai once again confirmed its status as a global leader, ranking fifth in the Brand Finance global ranking. Notably, the emirate is the leader in terms of reputation indicators, having surpassed megacities like Sydney and London. At the same time, there was a huge jump in the employment sector: from 24th place to 4th in terms of the attractiveness of the labour market. And naturally, I am particularly impressed that Dubai has taken the top spot in city reputation, rising from 7th place in 2023.
As someone who has lived here for many years, I can see how the city is transforming and developing. Behind these figures is a fundamental change in the structure of the emirate's economy.
The tourism sector is showing equally phenomenal dynamics: more than 10.6 million international visitors in the first seven months of the year, and the structure of tourist traffic has changed significantly. While short-term tourists used to dominate, we are now seeing a significant increase in the number of long-term visitors, especially from Western Europe (20%) and CIS countries (15%). This trend directly affects the real estate market, creating a steady demand in the premium segment.
The government of Dubai has approved an ambitious development strategy until 2033, which envisages increasing the real estate sector's contribution to the economy to $19.8 billion. The plan includes an ambitious program of infrastructure development: a 65-kilometer system of suspended transport connecting Umm Suqeim, Al Khor and Zabeel streets, new educational clusters and the modernisation of coastal zones. The inland roads project — 634 kilometres of new highways with a budget of AED 3.7 billion — also deserves attention.
The real estate market in 2024 was astonishing regarding the scale of transactions. We witnessed record-breaking deals that once again confirmed Dubai's status as a global centre of luxury real estate. For example, an apartment in the Bulgari Lighthouse Dubai complex was sold for an impressive $112 million — a nine-bedroom penthouse of 3,500 square meters. This indicates the maturity of Dubai's luxury real estate market. At Como Residences, the apartment went for $25 million, and The 118 in Downtown closed an $18 million deal — and that's just the tip of the iceberg.
Most importantly, the market is showing a healthy balance between the luxury and mid-range segments. An 18% increase in rental rates and a 4% increase in the number of leases indicate stable demand in all price categories. Studios and one- or two-bedroom apartments are in demand, attracting young professionals and small families.
Analysing trends, I see five key locations defining the market in 2025. These are Palm Jumeirah with its unique premium projects, the rapidly developing Dubai Islands, the promising Dubai South, the actively developing Mohammed Bin Rashid City and Jumeirah Village Circle, which attracts the middle class. Of note is the rapid development of Expo City, which is becoming the new centre of gravity for investment and innovation, with ambitious plans for a $2.72 billion expansion of the exhibition centre and a goal to achieve 100% renewable energy.
In parallel, neighbouring emirates are actively developing. Abu Dhabi is implementing large-scale projects in the field of culture and technology. Ras Al Khaimah attracts investors with its tourist and residential complexes, offering attractive conditions for investment. This integrated development of the entire region creates a solid foundation for further industry growth and opens new investor opportunities.
The trend towards sustainable construction deserves special attention. New projects are increasingly integrating “green” technologies, energy-saving systems, and smart resource management. I believe that this is not just a tribute to fashion but a response to the demand of wealthy buyers, for whom environmental friendliness is becoming one of the key criteria for choosing real estate.
The most important trend is a change in the buyer's portrait. More and more people are coming to us not for investment properties, but for a permanent place for long-term residence. High-level professionals are moving to Dubai with their families, considering the emirate as a place to live for 5-10 years or more. This fundamentally changes the structure of demand and requirements for the quality of real estate. And it makes it clear that Dubai is becoming not just a place to make a significant and quick buck, but an ideal emirate for a comfortable, safe and fulfilling life.
I am confident that 2025 will bring new records and achievements. Dubai continues to amaze with its ability to realise the boldest architectural and urban planning solutions, creating a unique environment for living and investing. In this dynamic development, I see confirmation of the correctness of our chosen path — focus on quality, professionalism and long-term relationships with clients.
We at the agency still have many ambitious plans. And we are ready to take a step into 2025.
