Dubai real estate holds firm in 2025 as prices, rents and ROI rise: top destinations revealed
The report points to continued transaction activity and overall stability across key sectors, including ready properties, off-plan sales and short-term rentals, bolstering confidence across Dubai’s residential market.
Commenting on the findings, Haider Ali Khan, CEO of Bayut and dubizzle and CEO of Dubizzle Group MENA, said: “The real estate market in Dubai has continued to be strong throughout the year, with continued demand across the community.
“In a fast-moving environment like this, having reliable information makes a real difference. At dubizzle, we focus on bringing verified listings and data-led insights to the table, so buyers, investors and tenants can make decisions with clarity and confidence. With a strong supply pipeline and new launches to come, the coming months should provide a clear picture of how the next phase of the market is shaping up.”
Fair trade: Dubai’s top destinations and trends
Buyer and investor activity remains stable across the most sought-after property areas in Dubai by 2025.
Dubai Marina led the luxury apartment segment, while Jumeirah Village Circle (JVC) and International City emerged as strong mid- and high-end markets, respectively.
In the villa category, DAMAC Lagoons remains the top choice for luxury villas, while Al Furjan and DAMAC Hills 2 lead the mid-range and affordable categories.
Dubai Investment Park (DIP) recorded the highest increase in residential property prices, with the average price reaching AED2.17m ($591,000). The square-foot price of residential properties in DIP also saw a sharp increase, reaching AED773 ($210).
For apartments, Dubai Silicon Oasis (DSO) recorded the highest price per square foot, with prices reaching AED1,501 ($409).
In terms of returns, Town Square delivered the highest return on investment for mid-rise apartments at 7.72 percent, while DAMAC Lagoons led the villa segment with a return of 10.46 percent.
Off-plan segment: various options and growing investor interest
The vacant property market in Dubai has continued to grow in 2025, supported by a strong pipeline of new launches and continued investor demand.
Unplanned apartments have attracted strong interest across a mix of established and emerging communities. Luxury demand was led by projects in Dubai Marina, Dubai Hills Estate and Dubai Creek Harbour, while mid-tier developments in Business Bay, Jumeirah Village Circle and Al Furjan also performed strongly. More affordable off-plan options have gained momentum in Dubai Investment Park, Dubai Land Residence Complex and Dubai South.
Unplanned villa demand remained concentrated in well-planned communities. High interest is centered on DAMAC Lagoons, The Valley by Emaar and Mohammed Bin Rashid City. Average demand was strong in Arabian Ranches 3, Mudon and Nad Al Sheba, while affordable housing projects in R. Hills, Chevalia Estate and Verona are also seeing growing interest.
The rental market in Dubai: constant demand in all segments
The Dubai rental market continued its growth in 2025, supported by active demand in many different areas.
Dubai Marina maintained its position as the top choice for luxury apartment rentals, while JVC and International City lead mid-range and affordable apartments.
In International City, the average rent for apartments rose to AED53,000 ($14,400), marking the highest increase in the affordable segment.
For villas, Al Barsha led the high-end rental market, while Al Furjan and DAMAC Hills 2 dominated the mid-range and affordable segments.
Median rents in Arabian Ranches 3 increased by 45.98 percent, driven by new inventory in Caya, with rental prices reaching AED254,000 ($69,200). Four-bedroom houses recorded the strongest growth, with rents up 69 per cent.
Short-term employment: growing interest and healthy living
Dubai’s short-term rental market remained strong throughout 2025, supported by strong tourism, flexible lifestyles and high-quality demand for short-term accommodation.
Short-term luxury housing demand remained concentrated in Dubai Marina, Downtown Dubai and Meydan City, while Palm Jumeirah, Dubai Hills Estate and DAMAC Hills lead the luxury housing segment. Daily demand for luxury apartments also remained strong in Dubai Marina, Downtown Dubai and JBR.
JVC, Business Bay and Al Barsha recorded strong demand for both monthly and daily short-term housing. In the villa category, Arabian Ranches 3 and The Springs appeared to increase short-term rental interest.
Short-term affordable rental demand remained concentrated in established districts, with International City, Bur Dubai and Deira leading the monthly share of apartments. DAMAC Hills 2 is at the top of demand for affordable short-term housing, while Bur Dubai, Deira and Dubai Silicon Oasis have emerged as key areas for daily rental.
