Dubai’s real estate market has started 2025 on a high, continuing the strong momentum we saw throughout 2024. Property prices are climbing, transaction volumes are holding steady, and rental demand remains strong—confirming Dubai’s position as one of the world’s most attractive real estate markets.
Property Prices Keep Climbing
The latest figures from the ValuStrat Price Index (VPI) show that property values are still on an upward trajectory. At the start of the year, the index hit 204.2 points, marking a 1.7% monthly increase and an impressive 27% jump year-on-year. Villas, in particular, saw a 31.2% annual rise, while apartments weren’t far behind at 23.1% growth.
Prime villa communities such as Jumeirah Islands, Palm Jumeirah, Emirates Hills, and Dubai Hills Estate remain in high demand, while apartments in Palm Jumeirah, The Greens, and Jumeirah Beach Residence have now surpassed their previous 2014 peak values.
Off-Plan Sales Still in High Demand
Off-plan properties continue to be a dominant force in the market. While Oqood registrations saw a 13.5% month-on-month dip in January, they were still up 37.9% compared to last year. That’s a clear sign that demand remains strong, with off-plan transactions making up 69.1% of all home sales.
Some areas stood out more than others. Dubailand Residence Complex set a new record for the highest number of off-plan sales in a single month, while Emaar South, Damac Hills 2, Jumeirah Village Circle, and Business Bay also saw strong activity.
Meanwhile, secondary-market sales dipped slightly by 5.1% month-on-month, though they were still 7% higher than last year. Key locations for ready properties included Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai, and Jumeirah Lake Towers.
What Buyers Are Looking For
With 14,238 property transactions recorded in early 2025—a 23% annual increase—it’s clear that buyer interest remains strong. The total value of these transactions also rose by 24%, reaching a massive $12.09 billion.
In terms of preferences, there’s a clear demand for smaller units, with 31% of buyers searching for one-bedroom apartments, 37% for two-bedrooms, and 15% for studios. For those looking at villas or townhouses, 37% preferred three-bedroom homes, while 50% were searching for properties with four or more bedrooms.
When it comes to location, Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah remain the top choices for apartment buyers. For villas and townhouses, Dubai Hills Estate, Palm Jumeirah, Dubailand, Al Furjan, and Damac Hills 2 continue to attract interest.
The Rental Market is Shifting
Dubai’s rental market is evolving alongside sales trends. More tenants are looking for furnished apartments, with 59% preferring fully furnished spaces, while 39% opted for unfurnished homes. Among villa and townhouse renters, the split was almost even, with 52% choosing furnished homes and 48% preferring unfurnished ones.
One-bedroom apartments are leading rental demand, making up 33.4% of all apartment rentals, followed by two-bedroom units (33%) and studios (21%). Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira remain the most popular locations for renters.
For villas and townhouses, three-bedroom homes made up 42% of rental searches, while 35% of tenants sought four-bedroom or larger properties. Key villa rental hotspots include Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Al Furjan.
Why Dubai’s Property Market is Still a Smart Investment
Despite shifts in buyer and tenant preferences, Dubai’s real estate market remains one of the most attractive investment destinations globally. Its combination of strong capital appreciation, high rental yields, and investor-friendly regulations makes it a top choice for those looking to enter or expand their portfolio.
For those searching for luxury real estate in Dubai, high-ROI investment properties, or off-plan projects with flexible payment plans, Dubai continues to offer prime opportunities. Popular searches among investors include freehold properties in Dubai, best areas to buy property in Dubai, expat-friendly communities, and waterfront properties with high rental yields.
Areas such as Palm Jumeirah, Dubai Marina, Downtown Dubai, and Business Bay continue to perform well, while emerging hotspots in Dubailand and Emaar South are gaining traction for their affordability and future growth potential.
With strong demand, rising property values, and a steady influx of international investors, Dubai remains a leading global real estate market—offering exceptional opportunities for buyers, investors, and renters alike.
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