Dubai’s real estate market showcased robust growth in 2025, buoyed by consistent demand and an increase in project supply. According to the Annual Dubai Property Market Report released by dubizzle, a renowned online property marketplace in the UAE, the dynamics of the market reveal a thriving landscape with sustained transactional activity across various segments, including off-plan properties and short-term rentals.

Key Market Trends and Insights

The report emphasizes the stability and vibrancy of Dubai’s real estate scene throughout the year. Haider Ali Khan, the CEO of Dubizzle Group MENA, outlined the progressive evolution of the industry. With the introduction of stronger regulations, innovative partnerships, and advancements in technology, such as real estate tokenization, confidence in the market has reached new heights. Reliable data is vital in this fast-paced environment, and dubizzle is committed to providing verified listings and insights that empower buyers, investors, and renters to navigate the market with ease and assurance.

Ready Sales: Preferred Locations and Performance

The search for ready properties remains strong in some of Dubai’s most desirable areas. For luxury apartments, Dubai Marina continued to lead the way, while Jumeirah Village Circle (JVC) and International City emerged as the top choices for mid-tier and affordable options. In the luxury villa market, DAMAC Lagoons maintained its position at the forefront, while Al Furjan and DAMAC Hills 2 captured the mid-tier and budget-conscious segments.

Interestingly, Dubai Investment Park (DIP) saw a significant rise in the villa segment, pushing average prices to approximately AED 2.17 million. Additionally, the per-square-foot pricing in DIP surged to AED 773, making it a lucrative option for buyers. Similarly, Dubai Silicon Oasis recorded a notable increase in apartment prices, reaching AED 1,501 per square foot. For returns, Town Square delivered impressive ROI for mid-tier apartments at 7.72%, while DAMAC Lagoons led for villas with a remarkable return of 10.46%.

Off-Plan Segment: Growth and Diverse Opportunities

The off-plan property segment remained a significant growth driver in 2025, fueled by a steady launch pipeline and strong market demand. Luxury apartments in established communities such as Dubai Marina, Dubai Hills Estate, and Dubai Creek Harbour were highly sought after, while mid-tier developments in Business Bay and affordable options in Dubai Investment Park attracted considerable interest.

The demand for off-plan villas was robust, particularly in master-planned communities. High-end projects in DAMAC Lagoons, Emaar’s The Valley, and Mohammed Bin Rashid City were at the forefront, while mid-tier and affordable villas gained traction in Arabian Ranches 3 and Chevalia Estate.

Rental Market: Consistent Demand Across Segments

In 2025, Dubai’s rental market experienced steady growth, buoyed by active demand across numerous neighborhoods. Dubai Marina remained a top choice for luxury apartment rentals, while JVC and International City led the mid-tier and affordable markets, respectively. Average rents in International City surged to AED 53,000, marking a significant increase in the segment.

In the villa rental market, Al Barsha dominated luxury offerings, whereas Al Furjan and DAMAC Hills 2 led in the mid-tier and affordable categories. Notably, Arabian Ranches 3 saw a 45.98% hike in mid-tier villa rents, primarily due to new inventory, with 4-bedroom villas surging by 69%.

In summary, Dubai’s real estate landscape in 2025 is characterized by diverse opportunities and strong growth across various segments. With both the off-plan and rental markets thriving, investors and renters alike can find promising prospects in this dynamic environment.