Dubai Real Estate Market Mid-Year Report 2025: Trends, Prices & Forecasts

Dubai's real estate sector has cemented its global reputation in 2025 as one of the most resilient and investor-friendly markets. Following a record-breaking 2024, the first half of 2025 has sustained momentum with robust transaction volumes, increasing end-user demand, and rising interest in high-end residential and branded developments.

At SBJ Real Estate, we’ve analyzed recent data from the Dubai Land Department (DLD), developer reports, and market analytics to present a detailed mid-year performance review - and what stakeholders can expect as we move into H2 2025.

1. Market Performance Overview: A Strong First Half

In the first six months of 2025, Dubai recorded over 45,000 real estate transactions - marking a 14% increase compared to H1 2024. The total value of these transactions crossed AED 170 billion, with the majority driven by:

• Off-plan project sales in areas like Arjan, JVC, and Dubai South
• High-value transactions in Palm Jumeirah, Emirates Hills, and Downtown
• Investor purchases linked to the Golden Visa property eligibility threshold

Notably, the ultra-luxury segment - comprising branded residences and waterfront villas - has shown a YoY growth of over 24% in value due to limited supply and rising global interest in Dubai’s lifestyle offering.

2. Property Prices: Upward Trends Across All Segments

Property values have continued their growth trajectory. Price increases have been especially noticeable in villa communities and mid-income townhouse developments. Key figures:

A growing preference for ready-to-move-in family homes and lifestyle-based projects is driving strong capital growth, particularly in integrated communities.

3. Rental Market Snapshot: High Demand, Limited Supply

Dubai’s rental market has tightened significantly in H1 2025, with average rents rising by 10–20% across prime locations.

Apartments:

• 1-BR in Business Bay now averaging AED 85,000/year (up from AED 72,000 in 2024)
• 2-BR in Marina fetching AED 120,000–140,000/year

Villas:

• 3-BR in Arabian Ranches II now rents for AED 185,000/year
• 4–5 BR units in Dubai Hills exceed AED 300,000/year

Short-term rental demand has also surged due to:

• Sustained tourism recovery
• Work-from-Dubai trends
• Increased corporate leasing from multinational firms

Gross rental yields in key locations are holding steady between 6–8.5%, with some short-let properties achieving double-digit returns.

4. Off-Plan Dominance: Why Investors Are Backing New Launches

Off-plan property sales now account for 60%+ of total transactions in 2025, thanks to:

• Flexible payment plans (e.g., 1% monthly or 70/30 handover models)
• Launches from top-tier developers like Emaar, Damac, Sobha, Binghatti
• Investor confidence in master-planned communities and infrastructure connectivity

Top-selling off-plan launches in H1 2025 include:

• Safa Gate by Damac
• Bugatti Residences by Binghatti
• The Oasis by Emaar
• Sobha One and 330 Riverside Crescent

These projects combine location, luxury branding, payment flexibility, and long-term capital growth, appealing to both end-users and global investors.

5. Top Performing Areas in H1 2025

6. Market Outlook for H2 2025

The second half of the year is expected to sustain growth, with key drivers including:

• New visa reforms & foreign ownership incentives
• The launch of Palm Jebel Ali residential zones
• Expo City Dubai taking shape as a future investment magnet
• Expansion of metro lines and public infrastructure

SBJ Real Estate expects villa prices to continue climbing due to tight supply, while affordable off-plan apartments in Arjan, Dubailand, and JVC will attract first-time buyers and investors.

Conclusion

Dubai’s real estate market in 2025 remains a solid, high-performing sector offering reliable returns, world-class infrastructure, and global investor confidence. Whether you're looking for an off-plan investment, a family villa, or a high-yield rental unit, now is the time to act.

At SBJ Real Estate, we bring you access to Dubai’s best properties, market analysis, and full support from viewing to handover.

Contact SBJ Real Estate today and secure your ideal property in a thriving Dubai market.
Office: #205B, Deira Twin Tower, Dubai
Phone: +971 50 500 8821
Website: www.sbjrealestate.ae