Dubai Property Market 2025: Sustained Growth Momentum, Record Off-Plan Activity and High-Yield Returns

Dubai’s real estate sector remained firmly on a growth trajectory in 2025, supported by steady demand and expanding supply. Reflecting these dynamics, dubizzle, the UAE’s leading online marketplace, has released its Annual Dubai Property Market Report, delivering a data-driven assessment of the emirate’s real estate market performance in 2025.

dubizzle’s report showed sustained transactional activity and overall stability across core market segments, including off-plan sales and short-term rentals.

Commenting on the latest market trends, the CEO of Bayut & dubizzle and CEO of Dubizzle Group MENA, Haider Ali Khan, said: “Dubai’s real estate market kept up its momentum throughout the year, with steady demand across the board. We’ve also seen the industry evolve, supported by stronger regulation, new partnerships and emerging innovations like real estate tokenisation, which are adding more confidence and depth to the market. In a fast-moving environment like this, having reliable information really makes a difference. At dubizzle, we focus on bringing verified listings and data-led insights to the table, so buyers, investors and renters can make decisions with clarity and confidence. With a strong pipeline of handovers and new launches ahead, the coming months should offer a clear view of how the next phase of the market takes shape.”

READY SALES: TOP AREAS AND MARKET TRENDS

Investor and buyer activity continued at a steady pace across Dubai’s most sought-after ready property locations.

●    Dubai Marina led the luxury apartment segment, while Jumeirah Village Circle (JVC) and International City emerged as the top-performing mid-tier and affordable apartment markets, respectively.

●    DAMAC Lagoons remained the top choice for luxury villas, while Al Furjan and DAMAC Hills 2 led the mid-tier and affordable segments.

●    Dubai Investment Park (DIP) recorded the highest increase in the villa segment, with the average price reaching AED 2.17M.

●    The per-square-foot price for villas in Dubai Investment Park (DIP) recorded the highest surge, reaching AED 773. Meanwhile, Dubai Silicon Oasis (DSO) saw the sharpest rise in per-square-foot price for apartments, reaching AED 1,501.

●    Town Square delivered the highest ROI for mid-tier apartments at 7.72%, while DAMAC Lagoons led the villa segment with a 10.46% return.

OFF-PLAN SEGMENT: DIVERSE OPTIONS AND GROWING INVESTOR INTEREST

Dubai’s off-plan property segment continued to drive growth in 2025, supported by a steady pipeline of new launches and substantial demand.

●    Off-plan apartments saw strong demand across established and emerging communities, led by luxury projects in Dubai Marina, Dubai Hills Estate and Dubai Creek Harbour, mid-tier developments in Business Bay, Jumeirah Village Circle and Al Furjan and affordable options in Dubai Investment Park, Dubai Land Residence Complex and Dubai South.

●    Off-plan villa interest remained concentrated in master-planned communities, with high-end projects in DAMAC Lagoons, The Valley by Emaar and Mohammed Bin Rashid City, mid-tier developments in Arabian Ranches 3, Mudon and Nad Al Sheba and affordable villa projects gaining traction in R. Hills, Chevalia Estate and Verona.

RENTAL MARKET: STEADY DEMAND, DIVERSE SUPPLY

The rental market in Dubai continued to grow steadily in 2025, fueled by active demand across various neighbourhoods.

●    Dubai Marina maintained its status as the preferred choice for luxury apartments, with JVC and International City emerging as the leading destinations in the mid-tier and affordable segments.

●    In International City, an affordable apartment community, average rents surged to AED 53k, marking the highest increase in the segment.

●    For villa rentals, Al Barsha led the luxury segment. On the other hand, Al Furjan and DAMAC Hills 2 dominated the mid-tier and affordable segments.

●    The rent of mid-tier villas in Arabian Ranches 3 surged 45.98% driven specifically by new inventory in Caya, reaching an average of AED 254k. The 4-bedroom villas led the gains, surging by 69%.

SHORT-TERM MARKET: EXPANDING INTEREST AND HEALTHY OCCUPANCY TRENDS

Dubai’s short-term rental market remained strong, driven by steady tourism, flexible living trends and rising demand for quality short-stay options.

●    The interest for luxury short-term rentals remained concentrated in prime locations, with significant monthly apartment demand in Dubai Marina, Downtown Dubai and Meydan City, while Palm Jumeirah, Dubai Hills Estate and DAMAC Hills led the segment for high-end villa short-term rentals; the demand for daily luxury apartments stayed anchored in Dubai Marina, Downtown Dubai and JBR.

●    JVC, Business Bay and Al Barsha experienced high demand for both monthly and daily apartments, while Arabian Ranches 3 and The Springs witnessed a strong short-term villa rental interest.

●    The interest for affordable vacation rentals continued to centre around established districts, with International City, Bur Dubai and Deira dominating the monthly apartment segment, DAMAC Hills 2 led the demand for affordable short-term villas and Bur Dubai, Deira and DSO emerged as key areas for daily rentals.