Dubai’s residential real estate market maintained strong momentum in the first half of 2025, with rising prices, high rental yields, and increased investor confidence across both ready and off-plan segments.
According to a market report from Bayut and dubizzle, the emirate’s real estate sector is entering a more mature, data-driven phase, where long-term value, transparency, and trusted insights are shaping buyer and seller decisions.
Ready sales: Suburban villa demand leads price gains
In the ready sales segment, villa prices in Dubailand surged by up to 10.4 per cent, driven by demand for larger, affordable homes.
Other high-performing communities included Dubai South, DAMAC Hills 2, and Dubai Sports City.
- Affordable apartments: Price increases of up to 7 per cent
- Affordable villas: Growth of up to 11 per cent
- Mid-tier apartments: Up to 3 per cent gain
- Mid-tier villas: Price appreciation between 6 per cent and 10 per cent
- Luxury villas: Growth between 2 per cent and 8 per cent
- Luxury apartments: Price increases of up to 4 per cent
Mid-market buyers remained focused on JVC, Business Bay, and Arabian Ranches 3, while premium buyers continued to invest in Dubai Marina, Downtown Dubai, and DAMAC Hills.
Off-plan market: Expanding supply and diversified interest
Dubai’s off-plan segment stayed vibrant in H1 2025, buoyed by consistent launches and strong demand across all pricing tiers.
Affordable off-plan standouts:
- Verdana 2 in Dubai South: Apartments priced around AED682,000–693,000 ($186,000–189,000)
- Azizi Venice: Averages AED 1.15M ($314k)
- 4B Living in International City: Launch price AED 395k ($108k)
- Greenspoint by Emaar: Villas starting from AED 3.4M ($928k)
Mid-tier off-plan standouts:
- Palatium Residences (JVC): AED 1.34M ($366k)
- Red Square and Guzel Towers (JVT): AED 907k–1.06M ($248k–290k)
- Binghatti Starlight (Al Jaddaf): Mid-segment appeal
- Bay Villas (Dubai Islands): Mid-luxury coastal market
Luxury off-plan demand:
- Sobha One and Creek Vistas Heights: ~AED 2.3M ($628k)
- DAMAC Bay by Cavalli: AED 4.74M ($1.29M)
- Thyme at Central Park: AED 2M ($547k)
- Knightsbridge (MBR City) and DAMAC Lagoons villas: Ranging from AED 2.69M to 6.85M ($735k–$1.87M)
Rental yields: Strong ROIs in affordable and mid-tier areas
Bayut’s ROI analysis found that affordable apartments in International City, DIP, and Discovery Gardens yielded 9 per cent to 11 per cent, while villas in DAMAC Hills 2, Industrial City, and Serena delivered rental returns above 5.85 per cent.
- Mid-tier communities: 7 per cent to 10 per cent ROI in Town Square, Mudon, and Al Furjan
- Luxury zones: Over 5.9 per cent ROI in Al Sufouh, Creek Harbour, and Jumeirah Golf Estates
Dubai real estate analysis
Haider Ali Khan, CEO of Bayut and dubizzle, CEO of Dubizzle Group MENA and Board Member of the Chamber of Digital Economy, said: “We’re seeing a really interesting shift in Dubai’s property market this year. Demand remains strong, but price movements are becoming more measured, a positive indicator of long-term stability.”
