Dubai’s residential real estate market has maintained its upward momentum in the first half of 2025, with continued price appreciation and robust investor confidence across both ready and off-plan segments.
Insights from Bayut and dubizzle reveal a market transitioning into a more mature, data-driven phase, where long-term value, pricing clarity and trusted insights are playing a more prominent role in buyer and investor behavior.
“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. At the same time, there’s a growing appetite for greater clarity around pricing,” said Haider Ali Khan, CEO of Bayut and dubizzle, CEO of Dubizzle Group MENA and Board Member of the Dubai Chamber of Digital Economy.
Affordable apartment prices rise by up to 7 percent
Bayut’s data for the ready sales segment indicates steady growth across all budget categories. Villas in Dubailand reported the highest price increases of up to 4 percent, driven by demand for larger, more affordable homes. Other high-performing affordable communities included Dubai South, DAMAC Hills 2, Dubai Sports City and Dubai Silicon Oasis.
In Dubai’s real estate market, mid-tier buyers remained focused on Jumeirah Village Circle (JVC), Business Bay, Al Furjan, and Arabian Ranches 3, while premium investors continued to transact in established luxury zones like Dubai Marina, Downtown Dubai, Arabian Ranches, and DAMAC Hills.
Across the board, affordable apartment prices rose by up to 7 percent, while villas in the same bracket saw growth of up to 11 percent. Mid-tier apartment prices increased by up to 3 percent, and villas in this range appreciated by 6 to 10 percent. In the luxury category, villa prices grew between 2 and 8 percent, while luxury apartment prices saw increases of up to 4 percent.
Off-plan developments see healthy buyer appetite
Dubai’s off-plan real estate sector also remained vibrant in H1 2025, supported by a wide spectrum of launches and healthy buyer appetite across price tiers.
Dubai Investment Park (DIP) and Dubai South were the top-performing zones for budget-friendly off-plan options. Notable projects include Verdana Residence and Verdana 2, offering apartments priced between AED682,000 and AED693,000, and Azizi Venice in Dubai South with average prices around AED1.15 million.
For affordable villas in Dubai’s real estate market, Dubailand led the way with projects like Hills and Taormina Village 1, alongside DAMAC Sun City. In DIP, DAMAC Riverside and Verdana 2 Villas provided value-driven inventory. Dubai South’s Greenspoint by Emaar also gained traction, offering homes with starting prices around AED3.4 million.
In the mid-tier off-plan segment, JVC emerged as the clear favorite for mid-tier off-plan apartments. Projects like Palatium Residences, Binghatti Aurora, SquareX Residence, and The F1fth also emerged as top choices in H1 2025. For mid-tier villas, Mudon’s Al Ranim and Arabian Ranches 3’s Anya and June were top choices. Dubai Islands, with Bay Villas by Nakheel, also stood out in the coastal mid-luxury segment.
Demand for gated luxury districts remains strong
Meanwhile, high-end buyers continued to show interest in waterfront and gated luxury districts. Bayut highlighted District 11, MBR City for villa buyers, while dubizzle reported strong demand in Sobha Hartland, Dubai Harbour, Al Wasl, and Dubai Hills Estate. Key luxury apartment projects included Sobha One and Creek Vistas Heights, DAMAC Bay by Cavalli, and Thyme at Central Park in Al Wasl. Hyde Residences in Dubai Hills Estate also gained popularity in H1.
For luxury villas in Dubai’s real estate market, Knightsbridge by LEOS in MBR City and a variety of thematically designed offerings in DAMAC Lagoons saw strong buyer activity.
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ROIs trends across affordable and mid-tier segments
Bayut’s ROI analysis found that affordable apartments in International City, DIP, and Discovery Gardens yielded between 9 percent and 11 percent. Villas in DAMAC Hills 2, Dubai Industrial City, and Serena also performed well, with rental yields exceeding 85 percent.
Mid-range communities such as Town Square, Mudon, Living Legends, and Al Furjan delivered rental returns of 7 to 10 percent, while luxury areas like Al Sufouh, Green Community, Dubai Creek Harbour, and Jumeirah Golf Estates offered stable ROIs above 9 percent.
With demand firmly underpinned by infrastructure expansion, price transparency and innovative PropTech tools, Dubai’s residential real estate market continues to offer long-term opportunities for both end-users and investors alike.
