Dubai’s Property Surge In Q1: What’s Driving The Market Forward?

Dubai’s real estate market has continued to fare exceptionally well, with a spike in sales and rental trends. Driven by increasing investor confidence, tourist influx and strategic government initiatives, the megacity remains a dynamic key player in the real estate landscape. The city has shown impeccable growth, gaining the renters’ and buyers’ trust, cementing its position as a thriving property hub.

dubizzle, UAE’s largest and most trusted classified platform, has been a significant part of this growth. The platform offers helpful insights into the Emirate’s burgeoning real estate sector, helping investors, buyers, renters and sellers in property transactions. An in-depth analysis of dubizzle’s search trends for Q1 2025 offers valuable takeaways into the flourishing Dubai property market.

Addressing the latest market trends, the CEO of dubizzle and Dubizzle Group MENA, Haider Khan, said:

“Dubai’s real estate market has sustained its upward trajectory in Q1 2025, with demand for ready properties reaching new heights and the off-plan sector continuing to thrive. Investor confidence remains exceptionally strong, driven by favourable market conditions, high rental yields and strategic government initiatives that have cemented Dubai’s position as a global investment hub. As the sector evolves, dubizzle commits to enhancing market transparency and providing data-driven insights as crucial elements in shaping informed decision-making and fostering long-term growth”

Here are the key highlights from Dubai’s property market for Q1 2025.

• Top Luxury Apartment Community: Dubai Marina has remained a preferred choice for buying or renting luxury apartments in the megacity. The bustling area has recorded an average sales price of AED 2.52M, while the average rent has been garnered at AED 139k in Q1 2025.
• Top Luxury Villa Community: With an average sales price of AED 17.77M, Dubai Hills Estate has stood out for buying luxury villas in the megacity. As for renting luxury villas, Al Barsha has remained a top pick, where average rent has amounted to AED 448k.
• High Investment Returns for Luxury Properties: Dubai Hills Estate has attracted investors’ interest with a notable ROI of 6.95% for luxury flats.  Meanwhile, DAMAC Hills has delivered the highest ROI of 5.62% for luxury villas.
• Top Mid-tier Apartment Community: Jumeirah Village Circle (JVC) has remained the point of focus of investors and tenants for mid-tier apartments, with an average asking price of AED 1.18M and an average annual rent of AED 79k.
• Top Mid-tier Villa Community: Al Furjan has emerged as a favourable choice for mid-tier villas, boasting an average sales price of AED 5.8M and an average rent of AED 322k.
• High Investment Returns for Mid-tier Properties: Apartments in Al Furjan have yielded an impressive 8.37% ROI. On the other hand, JVC has recorded the highest ROI for mid-tier villas, reaching 8.29%
• Top Affordable Apartment Community: For affordable apartments, Dubai Silicon Oasis (DSO) has captured the attention of investors. The neighbourhood has recorded an average sales price of AED 1.03M. With an average rent of AED 52k, International City has emerged as the preferred area for tenants.
• Top Affordable Villa Community: DAMAC Hills 2 (Akoya by DAMAC) has solidified its position as a top choice for affordable villas. The sales price of villas in this area has averaged AED 1.96M while the average rent has been estimated at AED 118k in Q1 2025.
• High Investment Returns for Affordable Properties: Dubai Investments Park has taken the lead in the affordable apartments segment, boasting an ROI of up to 8.79%. Also, the affordable villas in this area have recorded an impressive ROI of 12.16%.

Properties for Sale in Dubai

In line with dubizzle search trends, in Q1 2025, the following areas have emerged as the most favoured choices for buying apartments and villas in Dubai.

Apartments for Sale in Dubai

Dubai Marina, Downtown Dubai and Dubai Creek Harbour have emerged as the top three destinations for luxury apartment investments in the megacity. These areas have gained the investors’ confidence, thanks to their high-end amenities and proximity to the city’s landmarks.

• Dubai Marina has attained the top spot with an average sales price of AED 2.52M and a ROI of 5.84%. Downtown Dubai has secured the second spot, with an average sales price of AED 4.36M. Price per square foot has increased by 1.98% in Downtown Dubai while Dubai Marina has witnessed a slight dip of 0.88%.
• Dubai Creek Harbour, offering an average sales price of AED 2.89M and Dubai Hills Estate, at AED 2.48M, have also emerged as leading choices for luxury apartment buyers. Dubai Creek Harbour has registered an ROI of 6.27%, while the luxury apartments in Dubai Hills Estate have yielded an ROI of 6.95%.
• Luxury apartment buyers have also shown a keen interest in Palm Jumeirah, with an average sales price of AED 7.48M. The apartments in this area have offered an ROI of 4.36%.

In Q1 2025, Jumeirah Village Circle (JVC), Business Bay and Jumeirah Lake Towers (JLT) have gained the investors’ attention as the prime spots for mid-tier apartments.

• Jumeirah Village Circle (JVC) has led the mid-tier apartment segment with an average sales price of AED 1.18M and an ROI of 7.38%. The per-square-foot price in the area has reached AED 1,443 in Q1 2025 after a 1.16% increase.
• Mid-tier apartments in Business Bay have recorded an average sales price of AED 2.26M. Also, the average sales price for apartments in JLT have amounted to AED 2.09M in Q1 2025.
• Mid-tier apartment seekers have also opted for Al Furjan and Jumeirah Village Triangle (JVT). Al Furjan has remained a lucrative area in the mid-tier apartment segment with a notable 8.37% ROI.

For those in search of affordable apartments, Dubai Silicon Oasis (DSO), International City and Dubai Investments Park (DIP) have risen to the top as the most preferred locations.

• Apartments in Dubai Silicon Oasis (DSO) have recorded an average sales price of AED 1.03M with an ROI of 5.76%. Also, studio, 1-bedroom and 2-bedroom unit prices in DSO have increased by 0.60%, 7.60% and 6.97%, respectively.
• International City has witnessed a 14.72% uptick, amounting to an average sales price of AED 717k. Meanwhile, the sale price for apartments in Dubai Investments Park (DIP) has averaged AED 625k.
• Dubai Sports City and Dubai Production City (IMPZ) have retained their popularity among affordable apartment buyers, with an average sales price of AED 1.12M and AED 943k, respectively.

Villas for Sale in Dubai

Dubai Hills Estate, Palm Jumeirah and DAMAC Hills have captured the attention of luxury home buyers. These neighbourhoods have attained the top three positions in the luxury villa segment during Q1 2025.

• Dubai Hills Estate has continued to top the list with an ROI of 4.41% and an average sales price of AED 17.77M. The per-square-foot price for villas in the area has undergone a 1.01% change, reaching AED 2,730.
• The luxury villas in Palm Jumeirah have shown an average sales price of AED 47.48M, with an ROI of 3.63%. Meanwhile, for luxury houses, DAMAC Hills has recorded a 5.62% ROI with an average price of AED 6.91M.
• Investors looking for luxury villas have also opted for Mohammed Bin Rashid City and Arabian Ranches. In these locales, the per-square-foot prices have risen by 5.24% and 3.07%, respectively.

In the mid-tier villa segment, Al Furjan, Jumeirah Village Circle (JVC) and Arabian Ranches 3 have continued to enjoy popularity among home buyers.

• In Al Furjan, the villas have recorded an average sales price of AED 5.8M, offering an ROI of 5.69%. Also, the per-square-foot price has increased by 2.32% in Q1 2025.
• JVC has experienced a 1.55% increase in per-square-foot price, due to which the average sales price has amounted to AED 3.41M. Also, the average sales price for mid-tier villas in Arabian Ranches 3 has reached AED 4.27M.
• Reem, with an average sales price of AED 3.47M and Mudon, at AED 3.48M, have become top choices for mid-tier villa buyers. They have offered an ROI of 5.50% and 6.12%, respectively.

In Q1 2025, DAMAC Hills 2 (Akoya by DAMAC), Dubailand and Dubai South have emerged as the most-searched areas for affordable villas.

• DAMAC Hills 2 (Akoya by DAMAC) has offered affordable villas with an average price of AED 1.96M and a ROI of 7.14%. The per-square-foot price has risen by 3.26%, reaching AED 907.
• The villas in Dubailand have delivered a notable 7.99% ROI, with average sales prices reaching AED 2.47M. Meanwhile, Dubai South and Dubai Investments Park (DIP) have recorded average sale prices of AED 3.94M and AED 1.55M, respectively.
• International City has also shown a price increase, with per-square-foot rates climbing 5.10% to AED 1,058 in Q1 2025.

Properties for Rent in Dubai

In line with dubizzle search trends, many areas in Dubai have noted a rise in property demand. The following communities have achieved the attention of tenants seeking both apartments and villas in Q1 2025.

Apartments for Rent in Dubai

Dubai Marina, Downtown Dubai and Dubai Creek Harbour have remained the go-to choices for renting luxury apartments in the emirate.

• In Dubai Marina, the average yearly rent for luxury apartments has been around AED 139k.
• Downtown Dubai’s rental market has remained stable with the average annual rent recorded at AED 231k. As for Dubai Creek Harbour, the luxury apartments have recorded an average asking rent of AED 168k in Q1 2025.
• Palm Jumeirah and Jumeirah Beach Residence (JBR) have also remained tenants’ top preferences, with an average rent of  AED 246k and AED 200k, respectively.

Those in search of mid-tier rental apartments in the city have preferred Jumeirah Village Circle (JVC), Business Bay and Jumeirah Lake Towers (JLT).

• The yearly rent for mid-tier apartments in Jumeirah Village Circle has averaged AED 79k.
• After a 5.83% uptick, the average annual rent for Business Bay has climbed to AED 127k.  In Jumeirah Lake Towers, the average yearly rent for apartments has been around AED 109k.
• Al Furjan and Al Barsha have ranked as top choices among mid-tier apartment seekers, with the average annual rent recorded at AED 84k and AED 87k, respectively.

For renting budget-friendly flats, International City, Deira and Bur Dubai have been on the tenants’ radar in Q1 2025.

• International City has led the list with an average annual rent of AED 52k. As for the rental apartments in Deira, their average rent per annum has amounted to AED 94k.
• Bur Dubai has also seen growing demand, where the average yearly rent has been around AED 90k.
• Al Nahda and Dubai Silicon Oasis (DSO) have also remained popular among affordable apartment seekers, with the annual average rent recorded at AED 58k and AED 68k, respectively.

Villas for Rent in Dubai

Tenants in search of luxury villas have preferred Al Barsha, Jumeirah and Dubai Hills Estate. These areas have stood out among home seekers in Dubai due to their ample conveniences and favourable locations.

• The average asking rent for luxury villas in Al Barsha has been AED 448k.
• Tenants have paid an average rent of AED 420k for villas in Jumeirah, reflecting an increase of 3.19%.
• The annual rent of houses in Dubai Hills Estate has surged by 16.56%, averaging AED 549k.
• In Umm Suqeim, the average annual rent has been recorded at AED 422k, following a rise of 4.46% in Q1 2025.
• Palm Jumeirah has recorded a 5.34% spike in the yearly rent, reaching an average of AED 1.68M.

In Q1 2025, Al Furjan, Jumeirah Village Circle (JVC) and Arabian Ranches 3 have come out as the leading areas for renting mid-tier villas.

• The average yearly rent for villas in Al Furjan has reached AED 322k in Q1 2025.
• The rent for mid-tier villas in Jumeirah Village Circle has seen a slight dip of 0.49%, with an average of AED 204k per year.
• The annual rent for villas in Arabian Ranches 3 has averaged AED 186k.
• The rent of villas in Town Square has increased by 2.31%, amounting to AED 177k.
• Reem has also made it to the list of the most popular areas for mid-tier rental villas, with the average yearly rent reaching AED 183k.

DAMAC Hills 2 (Akoya by DAMAC), Mirdif and Dubai South have been recognised as the top options for tenants looking for affordable villas in Dubai.

• Villas in DAMAC Hills 2 (Akoya by DAMAC) have recorded an average yearly rent of AED 118k.
• The annual rent for affordable villas in Mirdif has averaged AED 157k.
• After a 3.05% increase, the average yearly rent for houses in Dubai South has jumped to AED 135k.
• In Dubailand, the average yearly rent has amounted to AED 209k.
• The yearly rent for affordable villas in International City has averaged AED 132k.

Off-plan Properties for Sale in Dubai

Dubai’s off-plan real estate has continued to grow, capturing the investors’ and home buyers’ attention. What’s more, certain areas have stood out as potential investment hubs in the city, offering lucrative opportunities.

Here are the top areas for off-plan apartments and villas in Dubai.

Off-plan Apartments for Sale in Dubai

• For luxury apartments in the off-plan category, investors have opted for Elvira in Dubai Hills Estate, having an average sales price of around AED 2.5M.
• St. Regis The Residences in Downtown Dubai has introduced ultra-luxury homes starting at AED 4.28M.
• Binghatti Skyrise in Business Bay has risen to the top spot for mid-tier off-plan apartments. The project has an average sales price of around AED 1.7M.
• For mid-tier off-plan apartments, projects such as Wind Towers in Jumeirah Lake Towers (JLT) have been on the investors’ radar, having an average price of AED 700k.
• Home buyers looking for affordable off-plan flats have favoured Verdana Residence. Located in Dubai Investments Park (DIP), the upcoming development has an average sales price of AED 607k.
• 48 Parkside in Arjan has also claimed the top position for affordable off-plan flats in the city. The project has accumulated an average sales price of AED 1.62M.

Off-plan Villas for Sale in Dubai

• In Q1 2025, DAMAC Lagoons has emerged as a top choice for home buyers seeking luxury off-plan villas. Venice has stood out as the prominent project in the segment, with AED 6.77M recorded as its starting price.
• Another notable project for luxury off-plan houses in Dubai is Farm Grove. Situated in the coveted area of The Valley by Emaar, this upcoming neighbourhood has an average sales price of AED 5.21M.
• Arabian Ranches 3 has stood out as the investors’ choice for mid-tier off-plan houses. The area has many upcoming projects such as Anya which has an average sales price of AED 2.91M.
• Another notable project for off-plan mid-tier villas is Mudon Al Ranim with an average sales price recorded at AED 3.23M.
• For affordable off-plan villas, Dubailand has taken the lead with top-tier projects such as the R. Hills. The residential project offers houses that have a starting price of AED 2.11M.
• Affordable off-plan villa investors and seekers have also favoured Dubai Investments Park (DIP). Here, Verdana 2 has garnered massive attention and has attained an average sales price of AED 1.26M.