Property prices in Dubai are likely to further rise in 2025 after already surging 20% this year as the emirate's real estate market continues its unabated post-pandemic recovery, real estate broker Knight Frank reports.

Dubai’s property market has been booming for the last five years, buoyed by the government’s lauded handling of the COVID-19 pandemic and its liberal visa policies introduced to lure expats and foreign buyers. The emirate has grown as an attractive location for high-net-worth-individuals to park their money, especially those facing economic challenges in their home countries, such as Russians looking to protect their assets from sanctions over the Ukraine war and wealthy Chinese buyers looking to escape tight COVID-19 restrictions.

In a new report released Tuesday, the company said that Dubai's residential values will rise by 8% next year and that the average price for a luxury property will rise by 5%. 

Sales hit a record deal volume in the first three quarters of 2024, overtaking the total for all of 2023, the report read. Sales in the third quarter of 2024 reached a record 116.8 billion dirhams ($31.7 billion).