Dubai’s real estate market has shown remarkable growth in 2025, driven by robust demand and increasing supply. As captured in the latest Annual Dubai Property Market Report from dubizzle, a prominent online marketplace in the UAE, the performance of the city’s real estate sector reflects these strong dynamics. The findings indicate a steady transactional volume and overall stability across various market segments, including off-plan properties and short-term rentals.

Key Trends in Ready Sales

The demand for ready properties has persisted at a consistent pace across Dubai’s most desirable locations. Dubai Marina continues to dominate the luxury apartment sector, while Jumeirah Village Circle (JVC) and International City have emerged as the leading mid-tier and affordable apartment markets, respectively. In the luxury villa segment, DAMAC Lagoons stands out as the top choice, while Al Furjan and DAMAC Hills 2 excel in the mid-tier and affordable villa categories. Notably, Dubai Investment Park (DIP) witnessed a substantial rise in villa prices, with averages reaching AED 2.17 million. Furthermore, it recorded the highest per-square-foot price surge among villas at AED 773, while Dubai Silicon Oasis (DSO) experienced a remarkable increase for apartments, hitting AED 1,501 per square foot.

Additionally, Town Square provided the highest return on investment (ROI) for mid-tier apartments at 7.72%, and DAMAC Lagoons led the villa segment with an impressive 10.46% ROI. This data illustrates the vibrant landscape of Dubai’s real estate, offering investors attractive opportunities across various price points.

The Off-Plan Market: Expanding Horizons

The off-plan segment of Dubai’s real estate market has continued to flourish, bolstered by a steady influx of new developments and robust demand. Luxury off-plan apartments are particularly popular in well-established and emerging communities, such as Dubai Marina, Dubai Hills Estate, and Dubai Creek Harbour. Mid-tier options are thriving in areas like Business Bay, Jumeirah Village Circle, and Al Furjan, while affordable alternatives are gaining traction in Dubai Investment Park, Dubai Land Residence Complex, and Dubai South.

In terms of villas, interest in off-plan properties remains high, especially within master-planned communities. High-end projects in DAMAC Lagoons, The Valley by Emaar, and Mohammed Bin Rashid City are attracting significant attention. Meanwhile, mid-tier developments in Arabian Ranches 3, Mudon, and Nad Al Sheba are also seeing burgeoning interest, alongside affordable villa projects in locations like R. Hills, Chevalia Estate, and Verona.

Rental Market Dynamics

The rental market in Dubai is experiencing steady growth, fueled by active demand across various neighborhoods. Dubai Marina continues to be the favored destination for luxury apartments, while JVC and International City are leading in the mid-tier and affordable segments, respectively. Average rents in International City surged to AED 53,000, marking the highest increase in its category.

For villa rentals, Al Barsha stands out in the luxury sector, while Al Furjan and DAMAC Hills 2 dominate the mid-tier and affordable segments. Particularly noteworthy is the rent increase for mid-tier villas in Arabian Ranches 3, which surged by 45.98% due to new inventory in Caya, reaching an average of AED 254,000, with 4-bedroom villas experiencing a dramatic 69% rise.

Short-Term Rental Market Insights

Dubai’s short-term rental sector remained robust, driven by a consistent rise in tourism and the growing preference for flexible living arrangements. Luxury short-term rentals are largely concentrated in prime areas, with Dubai Marina, Downtown Dubai, and Meydan City seeing significant monthly demand. Additionally, Palm Jumeirah and Dubai Hills Estate are in high demand for upscale villa rentals, while daily luxury apartment rentals remain strong in the same prominent locations.

Areas such as JVC, Business Bay, and Al Barsha have observed heightened interest for both monthly and daily rental apartments, while the popularity of short-term villa rentals is strong in Arabian Ranches 3 and The Springs. Budget-friendly vacation rentals are predominantly in established districts, with International City, Bur Dubai, and Deira leading in the monthly apartment sector, while DAMAC Hills 2 is gaining traction for affordable short-term villas.

In summary, Dubai’s real estate sector is characterized by sustained growth and diverse investment opportunities across different segments, catering to a wide variety of buyers, renters, and investors.