Dubai’s real estate sector has continued to record exceptional performance, seeing a spike in sales and rental trends. Driven by increasing investor confidence, tourist influx and strategic government initiatives, the megacity remains a dynamic key player in the real estate landscape. The city has shown impeccable growth, gaining the renters’ and buyers’ trust, cementing its position as a thriving property hub.
“Dubai’s real estate market has sustained its upward trajectory in Q1 2025, with demand for ready properties reaching new heights and the off-plan sector continuing to thrive. Investor confidence remains exceptionally strong, driven by favorable market conditions, high rental yields and strategic government initiatives that have cemented Dubai’s position as a global investment hub,” stated Haider Khan, CEO of dubizzle and Dubizzle Group MENA.
Top locations for buying apartments
According to dubizzle‘s latest report, Dubai Marina, Downtown Dubai and Dubai Creek Harbour have emerged as the top three destinations for luxury apartment investments in Dubai’s real estate sector in Q1 2025. These areas have gained the investors’ confidence, thanks to their high-end amenities and proximity to the city’s landmarks.
Dubai Marina attained the top spot with an average sales price of AED2.52 million and a ROI of 84 percent. Downtown Dubai secured the second spot, with an average sales price of AED4.36 million. Price per square foot has increased by 1.98 percent in Downtown Dubai while Dubai Marina has witnessed a slight dip of 0.88 percent.
Meanwhile, Dubai Creek Harbour, offering an average sales price of AED2.89 million and Dubai Hills Estate, at AED 2.48 million, have also emerged as leading choices for luxury apartment buyers. Dubai Creek Harbour has registered an ROI of 27 percent, while the luxury apartments in Dubai Hills Estate have yielded an ROI of 6.95 percent.
Luxury apartment buyers in Dubai have also shown a keen interest in Palm Jumeirah, with an average sales price of AED7.48 million. The apartments in this area have offered an ROI of 36 percent.
In Q1 2025, Jumeirah Village Circle (JVC), Business Bay and Jumeirah Lake Towers (JLT) have gained the investors’ attention as the prime spots for mid-tier apartments. For those in search of affordable apartments, Dubai Silicon Oasis (DSO), International City and Dubai Investments Park (DIP) have risen to the top as the most preferred locations.
Top locations for buying villas in Dubai
Across Dubai’s real estate sector, Dubai Hills Estate, Palm Jumeirah and DAMAC Hills have captured the attention of luxury home buyers. These neighborhoods have attained the top three positions in the luxury villa segment during Q1 2025.
Dubai Hills Estate has continued to top the list with an ROI of 41 percent and an average sales price of AED 17.77 million. The per-square-foot price for villas in the area has undergone a 1.01 percent change, reaching AED2,730. The luxury villas in Palm Jumeirah have shown an average sales price of AED47.48 million, with an ROI of 63 percent. Meanwhile, for luxury houses, DAMAC Hills has recorded a 5.62 percent ROI with an average price of AED6.91 million.
Investors looking for luxury villas have also opted for Mohammed Bin Rashid City and Arabian Ranches. In these locales, the per-square-foot prices have risen by 24 percent and 3.07 percent, respectively.
In the mid-tier villa segment, Al Furjan, Jumeirah Village Circle (JVC) and Arabian Ranches 3 have continued to enjoy popularity among home buyers. DAMAC Hills 2 (Akoya by DAMAC), Dubailand and Dubai South have emerged as the most-searched areas for affordable villas.
Rent trends shaping Dubai’s real estate landscape
Dubai Marina, Downtown Dubai and Dubai Creek Harbour have remained the go-to choices for renting luxury apartments in Dubai’s real estate sector.
In Dubai Marina, the average yearly rent for luxury apartments has been around AED139,000. Downtown Dubai’s rental market has remained stable with the average annual rent recorded at AED231,000. As for Dubai Creek Harbour, the luxury apartments have recorded an average asking rent of AED168,000 in Q1 2025. Palm Jumeirah and Jumeirah Beach Residence (JBR) have also remained tenants’ top preferences, with an average rent of AED246,000 and AED 200,000, respectively.
Those in search of mid-tier rental apartments in the city have preferred Jumeirah Village Circle (JVC), Business Bay and Jumeirah Lake Towers (JLT). For renting budget-friendly flats, International City, Deira and Bur Dubai have been on the tenants’ radar in Q1 2025.
Key spots for renting villas
Meanwhile, tenants in search of luxury villas have preferred Al Barsha, Jumeirah and Dubai Hills Estate. These areas have stood out among home seekers in Dubai due to their ample conveniences and favorable locations.
The average asking rent for luxury villas in Al Barsha has been AED448,000. Tenants have paid an average rent of AED420,000 for villas in Jumeirah, reflecting an increase of 19 percent. The annual rent of houses in Dubai Hills Estate has surged by 56 percent, averaging AED549,000.
In Umm Suqeim, the average annual rent has been recorded at AED422,000, following a rise of 46 percent in Q1 2025. Meanwhile, Palm Jumeirah has recorded a 34 percent spike in yearly rent, reaching an average of AED1.68 million.
In Q1 2025, Al Furjan, Jumeirah Village Circle (JVC) and Arabian Ranches 3 have come out as the leading areas for renting mid-tier villas. Meanwhile, DAMAC Hills 2 (Akoya by DAMAC), Mirdif and Dubai South have been recognized as the top options for tenants looking for affordable villas in Dubai.
Read: Dubai Land Department launches new alliance to support Dubai’s real estate promotion strategy
Emerging off-plan investment hubs in the city
Dubai’s off-plan real estate has continued to grow, capturing the investor and home buyer attention. Certain areas have stood out as potential investment hubs in the city, offering lucrative opportunities. For luxury apartments in the off-plan category, investors have opted for Elvira in Dubai Hills Estate, having an average sales price of around AED2.5 million. Regis The Residences in Downtown Dubai has introduced ultra-luxury homes starting at AED4.28 million.
Binghatti Skyrise in Business Bay has risen to the top spot for mid-tier off-plan apartments. The project has an average sales price of around AED1.7 million. Meanwhile, Homebuyers looking for affordable off-plan flats have favored Verdana Residence. Located in Dubai Investments Park (DIP), the upcoming development has an average sales price of AED607,000.
For those seeking luxury villas, DAMAC Lagoons has emerged as a top choice in Q1 2025. Venice has also stood out as the prominent project in the segment, with AED6.77 million recorded as its starting price.
As for mid-tier off-plan houses, Arabian Ranches 3 has stood out as the investors’ choice. The area has many upcoming projects like Anya which has an average sales price of AED2.91 million. For affordable off-plan villas, Dubailand has taken the lead with top-tier projects such as the Hills. The residential project offers houses that have a starting price of AED2.11 million.
