Dubai Property Market H1 2025: Balanced Growth and Investor Momentum

Dubai’s residential property 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 behaviour.

Ready Sales: Demand for Suburban and Lifestyle-Centric Communities

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 10.4%, 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.

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%, while villas in the same bracket saw growth of up to 11%. Mid-tier apartment prices increased by up to 3%, and villas in this range appreciated by 6% to 10%. In the luxury category, villa prices grew between 2% and 8%, while luxury apartment prices saw increases of up to 4%.

Off-Plan Market: Expanding Inventory and Buyer Diversification

Dubai’s off-plan property sector remained vibrant in H1 2025, supported by a wide spectrum of launches and healthy buyer appetite across price tiers.

Affordable Off-Plan

Both Bayut and dubizzle identified Dubai Investment Park (DIP) and Dubai South as top-performing zones for budget-friendly off-plan options.

Notable projects include Verdana Residence (Bayut) and Verdana 2 (dubizzle), offering apartments priced between AED 682k and AED 693k, and Azizi Venice in Dubai South with average prices around AED 1.15M.

Other strong contenders in this category include 4B Living in International City (launch price AED 395k), Jade Tower and Forest City Tower in Majan, and Binghatti Haven in Dubai Sports City, averaging around AED 1.22M.

For affordable villas, Dubailand led the way with projects like R. Hills and Taormina Village 1 (Bayut), 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 AED 3.4M.

Mid-Tier Off-Plan

JVC emerged as the clear favourite for mid-tier off-plan apartments, with Bayut users, while dubizzle data pointed to projects like Palatium Residences (AED 1.34M), Binghatti Aurora, SquareX Residence, and The F1fth. Nearby Jumeirah Village Triangle (JVT) offered alternatives like Red Square and Guzel Towers, with prices ranging from AED 907k to AED 1.06M. Al Jaddaf’s Binghatti Starlight also contributed to the segment’s appeal.

For mid-tier villas, Mudon’s Al Ranim (Bayut) and Arabian Ranches 3’s Anya and June (dubizzle) were top choices. Dubai Islands, with Bay Villas by Nakheel, also stood out in the coastal mid-luxury segment.

Luxury Off-Plan

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 (average prices ~AED 2.3M), DAMAC Bay by Cavalli (AED 4.74M), and Thyme at Central Park in Al Wasl (AED 2M). Hyde Residences in Dubai Hills Estate also gained popularity.

For luxury villas, Knightsbridge by LEOS in MBR City and a variety of thematically designed offerings in DAMAC Lagoons (e.g., Santorini, Malta, Nice, and Venice, ranging from AED 2.69M to AED 6.85M) saw strong buyer activity.

Investor Trends: Strong ROIs Across Affordable and Mid-Tier Segments

Bayut’s ROI analysis found that affordable apartments in International City, DIP, and Discovery Gardens yielded between 9% and 11%. Villas in DAMAC Hills 2, Dubai Industrial City, and Serena also performed well, with rental yields exceeding 5.85%.

Mid-range communities such as Town Square, Mudon, Living Legends, and Al Furjan delivered rental returns of 7% to 10%, while luxury areas like Al Sufouh, Green Community, Dubai Creek Harbour, and Jumeirah Golf Estates offered stable ROIs above 5.9%.

Commenting on the findings, Haider Ali Khan, CEO of Bayut and dubizzle, CEO of Dubizzle Group MENA and Board Member of the Dubai 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. At the same time, there’s a growing appetite for greater clarity around pricing. That’s where tools like TruEstimate™ are proving invaluable. In fact, in May, 50% of ready transactions in Dubai were closed after a TruEstimate™ report was generated, underscoring just how crucial data-backed insights have become in helping both buyers and sellers make more confident decisions.”

With demand firmly underpinned by infrastructure expansion, price transparency and innovative PropTech tools, Dubai’s residential market continues to offer long-term opportunities for both end-users and investors alike.