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COLIFE BLOG
How Ramadan Impacts Dubai’s Real Estate Market: Trends and Insights
Ramadan is a holy month for Muslims, a time of fasting, prayer and spiritual purification. In Dubai, as one of the largest Islamic centres, this month has special significance. Ramadan’s influence is felt in all aspects of the city’s life, including the economy and the real estate market Dubai.
Meaning of Ramadan in Dubai
Ramadan is a time for reflection, self-discipline and spiritual practice. Locals and visitors alike follow strict fasting rules, which impact their daily lives, work schedules and social events.
Dubai traditionally experiences a slowdown in business during Ramadan. Many companies reduce their working hours and offices close earlier. This may impact economic activity, but it also increases demand for retail, restaurants and hotels in the evening hours.
Evening prayers and iftar (the evening meal after fasting) create a unique atmosphere in the city, attracting tourists who seek this experience in the emirate.
Find more about the nightlife in Dubai during Ramadan. What’s open and where to go?
Dubai traditionally experiences a slowdown in business during Ramadan. Many companies reduce their working hours and offices close earlier. This may impact economic activity, but it also increases demand for retail, restaurants and hotels in the evening hours.
Evening prayers and iftar (the evening meal after fasting) create a unique atmosphere in the city, attracting tourists who seek this experience in the emirate.
Find more about the nightlife in Dubai during Ramadan. What’s open and where to go?
The Impact of Ramadan on the Real Estate Market
Dubai traditionally sees a decline in rental Dubai housing demand during the first weeks of Ramadan. This is due to people often staying at home for longer periods of time, as well as an increase in business trips and overseas travel.
During the month, demand for short-term rentals increases, especially in hotels and apartments located in popular tourist areas such as Burj Khalifa, Palm Jumeirah and Marina.
As Eid al-Fitr approaches (the end of Ramadan), activity in the real estate market Dubai begins to increase, especially in the luxury segment. This is a time of active transactions and searches for properties for both rent and purchase.
In 2024, transactions rose by 39%, reaching 12,313, while sales values soared by 55% to AED 32.6 billion.
During the month, demand for short-term rentals increases, especially in hotels and apartments located in popular tourist areas such as Burj Khalifa, Palm Jumeirah and Marina.
As Eid al-Fitr approaches (the end of Ramadan), activity in the real estate market Dubai begins to increase, especially in the luxury segment. This is a time of active transactions and searches for properties for both rent and purchase.
In 2024, transactions rose by 39%, reaching 12,313, while sales values soared by 55% to AED 32.6 billion.
Market Trends During Ramadan
During Ramadan, the Dubai property market traditionally experiences a slowdown in activity, resulting in fewer transactions. This Dubai property market trend has its reasons:
• Cultural and religious factors. Muslims spend more time on spiritual practices during this period, which reduces interest in property transactions. Ramadan is a time of fasting, prayer, and family gatherings, which affects the priorities of many people, including those looking to buy or sell property.
• Changes in working hours. During Ramadan, most companies have shorter working hours, making it less convenient to conduct transactions and meet with potential buyers and sellers. This, in turn, slows down the closing process.
• Cultural and religious factors. Muslims spend more time on spiritual practices during this period, which reduces interest in property transactions. Ramadan is a time of fasting, prayer, and family gatherings, which affects the priorities of many people, including those looking to buy or sell property.
• Changes in working hours. During Ramadan, most companies have shorter working hours, making it less convenient to conduct transactions and meet with potential buyers and sellers. This, in turn, slows down the closing process.
Changes in property viewing and negotiations
During Ramadan, property viewings often take place in the evening, after iftar, when people can focus more on transactions. This changes the typical schedule, as most people avoid active business meetings during the day when they are fasting.
The decrease in activity may result in fewer quick property purchase decisions, as many do not want to rush into such important decisions during this period.
The decrease in activity may result in fewer quick property purchase decisions, as many do not want to rush into such important decisions during this period.
Potential price fluctuations
The first two weeks of Ramadan traditionally see a decrease in demand for property, which may result in a slight decrease in rental and purchase prices, especially in the lower and mid-range segments. At this time, owners may be more flexible in negotiating prices in an attempt to attract customers.
The last weeks of Ramadan, especially as Eid al-Fitr approaches, see an increase in demand, especially for rental properties, which may result in prices stabilising or even rising in the most popular areas. This is when many people start planning their post-Ramadan lives, leading to increased activity in transactions.
Looking ahead to Ramadan 2025, experts predict transaction volume will reach approximately 13,500, with total sales value projected at AED 36 billion in Dubai.
Ramadan in Dubai brings seasonal fluctuations in the property market, with activity slowing down in the first weeks of the month and a possible increase in interest in the last days. This can be an opportunity for both buyers and sellers to secure better deals, as long as they are prepared to wait until the end of the fasting month and Eid.
The last weeks of Ramadan, especially as Eid al-Fitr approaches, see an increase in demand, especially for rental properties, which may result in prices stabilising or even rising in the most popular areas. This is when many people start planning their post-Ramadan lives, leading to increased activity in transactions.
Looking ahead to Ramadan 2025, experts predict transaction volume will reach approximately 13,500, with total sales value projected at AED 36 billion in Dubai.
Ramadan in Dubai brings seasonal fluctuations in the property market, with activity slowing down in the first weeks of the month and a possible increase in interest in the last days. This can be an opportunity for both buyers and sellers to secure better deals, as long as they are prepared to wait until the end of the fasting month and Eid.
Buyer & Investor Behavior in Ramadan
During Ramadan, developers and builders in Dubai often make concessions by offering various incentives and discounts to stimulate demand for real estate. This may be due to the seasonal slowdown, and they are trying to attract buyers during a period when demand may be lower than usual. Examples of such offers:
To attract buyers, developers may offer significant Ramadan property discounts on home purchases, especially at the initial stage of sales of new projects.
Some developers may offer buyers the opportunity to defer part of the cost of the home or offer flexible financing terms, which is especially attractive to buyers who are looking for favorable terms.
In some cases, buyers may receive additional bonuses, such as free repairs or free parking spaces.
This approach helps stimulate sales during Ramadan, when many people are trying to reduce their expenses or avoid large financial commitments.
During Ramadan, banks and financial institutions often adapt their mortgage offers to support demand for real estate. Banks may offer reduced mortgage rates or flexible lending terms during Ramadan, making property purchases more affordable for many clients. Such offers may include a reduced down payment or lower interest rates, which significantly increases the attractiveness of mortgage lending.
Some banks offer customers a payment deferment, allowing buyers to defer part of their payments until after Ramadan. This reduces the financial burden and may be attractive to families and individual investors.
Thus, banks and developers actively use Ramadan as a period to attract new clients by offering favorable terms for financing and purchasing real estate.
Many investors, especially those focused on short-term real estate investments during Ramadan, may slow down their activity. This is due to the traditional decrease in interest in transactions, especially in the first half of the month. However, in the last weeks of the month, activity may increase, as investors begin to prepare deals before the Eid holiday, which attracts the attention of buyers.
Despite the general decrease in activity, some investors may use Ramadan to prepare for longer-term projects. For example, investing in new buildings that may be completed next year or buying land in promising areas for further development.
During Ramadan, end users tend to show lower activity as many of them focus on religious obligations and family matters. However, in the last days of Ramadan, with the approach of Eid al-Fitr, purchasing activity may increase.
Many end users plan their purchases for after Ramadan, when the market becomes more active. However, some look for good deals and offers during the fasting month itself.
To attract buyers, developers may offer significant Ramadan property discounts on home purchases, especially at the initial stage of sales of new projects.
Some developers may offer buyers the opportunity to defer part of the cost of the home or offer flexible financing terms, which is especially attractive to buyers who are looking for favorable terms.
In some cases, buyers may receive additional bonuses, such as free repairs or free parking spaces.
This approach helps stimulate sales during Ramadan, when many people are trying to reduce their expenses or avoid large financial commitments.
During Ramadan, banks and financial institutions often adapt their mortgage offers to support demand for real estate. Banks may offer reduced mortgage rates or flexible lending terms during Ramadan, making property purchases more affordable for many clients. Such offers may include a reduced down payment or lower interest rates, which significantly increases the attractiveness of mortgage lending.
Some banks offer customers a payment deferment, allowing buyers to defer part of their payments until after Ramadan. This reduces the financial burden and may be attractive to families and individual investors.
Thus, banks and developers actively use Ramadan as a period to attract new clients by offering favorable terms for financing and purchasing real estate.
Many investors, especially those focused on short-term real estate investments during Ramadan, may slow down their activity. This is due to the traditional decrease in interest in transactions, especially in the first half of the month. However, in the last weeks of the month, activity may increase, as investors begin to prepare deals before the Eid holiday, which attracts the attention of buyers.
Despite the general decrease in activity, some investors may use Ramadan to prepare for longer-term projects. For example, investing in new buildings that may be completed next year or buying land in promising areas for further development.
During Ramadan, end users tend to show lower activity as many of them focus on religious obligations and family matters. However, in the last days of Ramadan, with the approach of Eid al-Fitr, purchasing activity may increase.
Many end users plan their purchases for after Ramadan, when the market becomes more active. However, some look for good deals and offers during the fasting month itself.
Impact on Rental Market
Ramadan sees some interesting changes in short-term rental demand in Dubai. The decline in interest in long-term rentals at the beginning of the month is due to many locals and expats either staying home to observe religious practices or going on long vacations. However, the short-term rental market may still be active during this time due to the following reasons:
• Despite the decline in overall activity, Dubai still sees interest from tourists looking to experience the holy month and attend festive events such as midnight iftars, cultural events and festivals. This increases demand for short-term rentals, especially in central and popular areas such as Burj Khalifa, Palm Jumeirah and Marina.
• Some renters are looking for temporary accommodation for a month, such as for family celebrations, events or religious purposes, which may also be a factor in the increase in short-term rental demand during this period.
During Ramadan, many expats, especially families, often go on holiday for a few weeks to spend time with family or in their home countries. This has an impact on the rental market:
• With more expats leaving the city during Ramadan, there may be more properties available on the rental market. This can impact rentals and allow new tenants to take up more attractive properties at better terms.
• When expats leave, there is often a decrease in demand for long-term rentals during this time. Property owners may be forced to reduce rental prices or offer flexible terms to attract tenants, especially in the first weeks of Ramadan.
Colife can offer flexible solutions to attract tenants during Ramadan. Colife offers short-term rentals, which are ideal for those looking for a place to stay during Ramadan only or as a temporary option. Discounts on rentals during Ramadan can also be found. This can be beneficial for both tenants and owners, as it can lead to rapid occupancy of housing during periods of low activity.
Find here how much it costs to rent an apartment in Dubai.
• Despite the decline in overall activity, Dubai still sees interest from tourists looking to experience the holy month and attend festive events such as midnight iftars, cultural events and festivals. This increases demand for short-term rentals, especially in central and popular areas such as Burj Khalifa, Palm Jumeirah and Marina.
• Some renters are looking for temporary accommodation for a month, such as for family celebrations, events or religious purposes, which may also be a factor in the increase in short-term rental demand during this period.
During Ramadan, many expats, especially families, often go on holiday for a few weeks to spend time with family or in their home countries. This has an impact on the rental market:
• With more expats leaving the city during Ramadan, there may be more properties available on the rental market. This can impact rentals and allow new tenants to take up more attractive properties at better terms.
• When expats leave, there is often a decrease in demand for long-term rentals during this time. Property owners may be forced to reduce rental prices or offer flexible terms to attract tenants, especially in the first weeks of Ramadan.
Colife can offer flexible solutions to attract tenants during Ramadan. Colife offers short-term rentals, which are ideal for those looking for a place to stay during Ramadan only or as a temporary option. Discounts on rentals during Ramadan can also be found. This can be beneficial for both tenants and owners, as it can lead to rapid occupancy of housing during periods of low activity.
Find here how much it costs to rent an apartment in Dubai.
Predictions for Post-Ramadan Market
Dubai traditionally sees a significant surge in property activity after Ramadan and Eid al-Fitr. This is due to several factors:
• Return of expats and tourists. After a long holiday, many expats and tourists return to Dubai, leading to increased demand for rental and purchase properties. Families who have been on holiday often begin to actively search for homes or resume planning their long-term moves.
• Increased transaction activity. Both buyers and investors begin to make decisions after the holy month ends. Many of them have been postponing their purchases until later in the year, waiting for the market to stabilise. Demand for property can quickly increase, especially for apartments and houses in popular areas.
The Dubai property market may face several adjustments after Ramadan:
• Adjustment in rental prices. Rent prices may increase after Ramadan, especially in popular areas, as demand for housing recovers with the return of expats and tourists. However, with supply growing and competition increasing, landlords may be forced to offer more flexible terms to tenants to fill empty properties.
• Property purchase prices. In the short term, property prices are expected to increase modestly, especially in the premium and residential segments in popular areas, as transactions resume after a period of slowdown.
• Increase in long-term demand. As business activity picks up and workers return to Dubai, long-term demand for housing may increase, which may also lead to higher prices in more sought-after areas of the city.
• Return of expats and tourists. After a long holiday, many expats and tourists return to Dubai, leading to increased demand for rental and purchase properties. Families who have been on holiday often begin to actively search for homes or resume planning their long-term moves.
• Increased transaction activity. Both buyers and investors begin to make decisions after the holy month ends. Many of them have been postponing their purchases until later in the year, waiting for the market to stabilise. Demand for property can quickly increase, especially for apartments and houses in popular areas.
The Dubai property market may face several adjustments after Ramadan:
• Adjustment in rental prices. Rent prices may increase after Ramadan, especially in popular areas, as demand for housing recovers with the return of expats and tourists. However, with supply growing and competition increasing, landlords may be forced to offer more flexible terms to tenants to fill empty properties.
• Property purchase prices. In the short term, property prices are expected to increase modestly, especially in the premium and residential segments in popular areas, as transactions resume after a period of slowdown.
• Increase in long-term demand. As business activity picks up and workers return to Dubai, long-term demand for housing may increase, which may also lead to higher prices in more sought-after areas of the city.
Post-Ramadan is one of the best times to invest in Dubai property. Why?
• Low competition in the market. Until the end of the first half of the year, the Dubai property market is often characterized by less competition, especially in the summer months. This creates opportunities for buyers to secure good deals before the new season begins.
• Market stabilization. After Ramadan, the market stabilizes and many investors who were waiting for this moment start investing actively. This is the time when many developers announce new projects, and buyers can get better deals due to possible discounts and offers from developers.
Overall, the period after Ramadan is one of the most promising times for real estate investments, especially for investors looking for new opportunities.a
• Market stabilization. After Ramadan, the market stabilizes and many investors who were waiting for this moment start investing actively. This is the time when many developers announce new projects, and buyers can get better deals due to possible discounts and offers from developers.
Overall, the period after Ramadan is one of the most promising times for real estate investments, especially for investors looking for new opportunities.a
Wrap Up
Ramadan has a significant impact on the Dubai property market, creating both short-term and long-term changes:
A slowdown in activity at the beginning of the month. The first weeks of Ramadan traditionally see a slowdown in property transactions. Many buyers and renters have to postpone their decisions, and activity slows down due to religious practices and expat holidays.
An increase in short-term rentals. While long-term demand falls, demand for short-term rentals increases. Tourists who come to Dubai to participate in cultural events and iftars are looking for comfortable apartments and hotel rooms for short-term stays.
Flexible terms from developers and banks. During Ramadan, developers and banks offer favorable terms such as discounted rents, payment deferrals, and flexible mortgage offers. This opens up opportunities for better deals for both renters and buyers.
A surge in activity after Eid al-Fitr. With Ramadan ending and Eid approaching, Dubai is seeing a surge in real estate activity. Expats are returning, tourists are increasing their demand for accommodation, and investors are starting to place their bets on properties.
Investment Opportunities. For investors, Ramadan can be a time of great buying and renting opportunities, with properties on the best terms to be found. With the post-Ramadan surge in activity, it is the time when many developers are announcing new projects.
For those interested in investing in Dubai real estate, Colife offers a variety of rental and purchase options. With flexible rental terms and well-thought-out offers suitable for long-term and short-term investors, this is a great time to find great deals.
Explore Colife rental and investment options! Just contact us for more information.
A slowdown in activity at the beginning of the month. The first weeks of Ramadan traditionally see a slowdown in property transactions. Many buyers and renters have to postpone their decisions, and activity slows down due to religious practices and expat holidays.
An increase in short-term rentals. While long-term demand falls, demand for short-term rentals increases. Tourists who come to Dubai to participate in cultural events and iftars are looking for comfortable apartments and hotel rooms for short-term stays.
Flexible terms from developers and banks. During Ramadan, developers and banks offer favorable terms such as discounted rents, payment deferrals, and flexible mortgage offers. This opens up opportunities for better deals for both renters and buyers.
A surge in activity after Eid al-Fitr. With Ramadan ending and Eid approaching, Dubai is seeing a surge in real estate activity. Expats are returning, tourists are increasing their demand for accommodation, and investors are starting to place their bets on properties.
Investment Opportunities. For investors, Ramadan can be a time of great buying and renting opportunities, with properties on the best terms to be found. With the post-Ramadan surge in activity, it is the time when many developers are announcing new projects.
For those interested in investing in Dubai real estate, Colife offers a variety of rental and purchase options. With flexible rental terms and well-thought-out offers suitable for long-term and short-term investors, this is a great time to find great deals.
Explore Colife rental and investment options! Just contact us for more information.
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