Dubai’s property market closed 2025 with its momentum firmly intact, as demand for ready homes in prime locations stayed strong and the rental market pushed to new highs, reinforcing the emirate’s status as one of the world’s most active real estate hubs.
Fresh data from dubizzle’s Annual Dubai Property Market Report paints a picture of a market that is broadening rather than overheating, with buyers, tenants and investors spreading activity across luxury, mid-tier and affordable communities.
Transaction volumes across ready properties remained resilient throughout the year, even as off-plan sales dominated headlines. Analysts say this balance has become a defining feature of Dubai’s post-pandemic cycle, as end-users increasingly prioritise completed units that offer immediate occupancy, predictable service charges and proven rental demand. Dubai Marina once again topped the list of most sought-after ready apartment locations in the luxury segment, underpinned by its waterfront lifestyle, mature infrastructure and consistent rental yields. In the mid-tier category, Jumeirah Village Circle consolidated its position as a buyer and tenant favourite, while International City continued to attract cost-conscious investors chasing high occupancy and entry-level pricing.
The villa market followed a similar pattern. Damac Lagoons emerged as the most in-demand luxury villa destination, reflecting sustained appetite for branded, master-planned communities. Al Furjan and Damac Hills 2 dominated the mid-tier and affordable villa segments, buoyed by family-oriented layouts and improving connectivity. One of the standout performers was Dubai Investment Park, where average villa prices climbed to around Dh2.17 million, marking the strongest annual increase in the segment. On a per-square-foot basis, villa prices in the same area surged to roughly Dh773, while Dubai Silicon Oasis recorded the sharpest rise among apartments, with prices reaching about Dh1,501 per square foot.
Returns remained a key draw. Town Square delivered the highest return on investment for mid-tier apartments at approximately 7.72 per cent, while Damac Lagoons led the villa segment with returns of about 10.46 per cent. According to market consultants, these yields continue to look attractive when compared with global cities such as London, Singapore or Hong Kong, particularly in an environment where interest rates are expected to ease gradually in 2026.
Haider Ali Khan, CEO of Bayut and dubizzle and CEO of Dubizzle Group Mena, said the market’s evolution in 2025 was marked not just by growth, but by greater maturity. He pointed to stronger regulation, improved transparency and emerging innovations such as real estate tokenisation as factors that are deepening investor confidence. With a large pipeline of handovers scheduled over the next two years, Khan said the coming period would be critical in shaping the next phase of Dubai’s property cycle.
While ready homes drew steady interest, the off-plan segment remained a powerful growth engine. Luxury apartment launches in Dubai Marina, Dubai Hills Estate and Dubai Creek Harbour continued to attract both regional and international buyers, while mid-tier projects in Business Bay, JVC and Al Furjan appealed to investors seeking lower ticket sizes.
Affordable off-plan options in Dubai Investment Park, Dubai Land Residence Complex and Dubai South gained traction, supported by flexible payment plans and proximity to employment hubs. In the villa space, Damac Lagoons, The Valley by Emaar and Mohammed Bin Rashid City led luxury demand, while Arabian Ranches 3, Mudon and Nad Al Sheba were popular in the mid-tier segment.
The rental market was one of the clearest indicators of Dubai’s economic expansion in 2025. Population growth, job creation and sustained tourism flows kept demand elevated across most neighbourhoods. Dubai Marina remained the top choice for luxury apartment tenants, while JVC and International City led the mid-tier and affordable segments. Average rents in International City climbed to around Dh53,000, marking one of the sharpest increases among budget communities. In the villa rental market, Al Barsha topped the luxury segment, while Al Furjan and DAMAC Hills 2 dominated mid-tier and affordable demand.
Some of the steepest rental gains were driven by new supply. In Arabian Ranches 3, average rents for mid-tier villas jumped nearly 46 per cent to about Dh254,000, largely due to handovers in Caya. Four-bedroom units led the surge, recording increases of roughly 69 per cent, according to dubizzle’s data.
Short-term rentals also remained robust, supported by strong tourism numbers and the rise of flexible living. High-end apartments in Dubai Marina, Downtown Dubai and Meydan City were in constant demand, while Palm Jumeirah and Dubai Hills Estate led the luxury villa segment.
Looking ahead to 2026, most experts expect Dubai’s property market to transition into a more moderate but sustainable growth phase. CBRE and JLL have both noted that while price growth is likely to slow, fundamentals such as population inflows, infrastructure spending and economic diversification should continue to underpin demand.
