Dubai’s property prices have increased by 12 per cent over the past 12 months as the real estate sector continues to demonstrate impressive resilience, with both apartments and villas recording solid growth amid sustained investor confidence and a surging influx of residents.
According to eXp Dubai’s latest market analysis, average property prices have increased by 3.3 per cent in the first quarter of 2025 and by 12 per cent over the past 12 months, confirming the emirate’s enduring appeal as a global property investment hotspot.
The findings underscore a notable shift in buyer trends, with apartments registering the highest rate of quarterly appreciation at 3.8 per cent, outpacing villas, which rose by 2.4 per cent during the same period. This reflects a growing preference among younger professionals and new expatriate arrivals for compact, centrally located living options that offer proximity to workplaces, transit networks, and lifestyle amenities.
However, over the long term, villas have retained their dominance in capital appreciation, with prices up by 19.7 per cent year-on-year, compared to 8.5 per cent for apartments. This sustained demand for larger homes is driven by long-term residents and families seeking more privacy, green spaces, and a suburban lifestyle that villa communities typically offer.
“Dubai’s property market continues to thrive, offering diverse options to meet the evolving needs of its residents,” said Dounia Fadi, Managing Director of eXp Dubai. “While flats cater to the dynamic, urban lifestyle of younger professionals, villas are attracting families seeking more space and a tranquil environment. This balance ensures a resilient and sustainable market with strong growth across the board.”
The data from eXp Dubai is supported by broader market indicators. According to the Dubai Land Department (DLD), the first half of 2025 saw real estate transactions cross Dh210 billion in value, with over 67,000 deals recorded—a 20 per cent increase in value compared to the same period in 2024. Notably, off-plan sales surged 28 per cent year-on-year, reflecting strong demand for under-construction developments amid limited ready supply in key locations.
The emirate’s population crossed 3.8 million in mid-2025, with growth driven by a steady influx of global talent under the UAE’s Golden Visa and residency schemes. This demographic shift has added further upward pressure on housing demand, especially in areas like Dubai Marina, Downtown, Business Bay, and Jumeirah Village Circle for apartments, and Arabian Ranches, Dubai Hills, and Damac Hills for villas.
Developers have responded with a raft of new project launches, particularly in premium and mid-market segments. Leading developers like Emaar, Nakheel, Sobha, and Danube have introduced apartment towers with flexible payment plans and lifestyle-driven features, including co-working spaces, smart home technology, and wellness amenities—all appealing to Dubai’s fast-expanding white-collar class.
At the same time, villa communities continue to expand outward, with significant development in Dubailand, Tilal Al Ghaf, and the Dubai South corridor, where larger plots and gated family living remain attractive propositions. The emphasis on community-centric planning, integrated retail, and access to schools and healthcare has cemented villa demand as a long-term growth pillar.
Analysts expect the upward trend to continue, albeit at a moderated pace. According to global consultancy Knight Frank, Dubai’s prime residential market is forecast to grow by 7 per cent in 2025, driven by robust investor appetite, limited supply of ready high-end units, and consistent rental returns.
Rental yields across Dubai remain among the highest globally. Average gross yields stand at 6.8 per cent for apartments and 5.3 per cent for villas, outperforming mature markets such as London and Singapore. This income stability, combined with zero capital gains tax and streamlined regulatory procedures, continues to attract international investors and institutional capital into Dubai’s real estate.
The government’s proactive stance on urban planning, digital infrastructure, and ESG integration is also reinforcing long-term confidence. Initiatives such as the Dubai 2040 Urban Master Plan aim to double green and recreational spaces and boost sustainable mobility, which is expected to further enhance livability and property values across the city.
Looking ahead, Dubai’s property sector is well-positioned to benefit from ongoing economic diversification, global investor interest, and the city’s positioning as a hub for business, tourism, and innovation.
issacjohn@khaleejtimes.comis Managing Editor at media and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
