Dubai Residential Property Prices Continue to Rise in 2025
A report by real estate portal Bayut showed a continued increase in average sale prices per square foot for both apartments and villas across several key residential areas in Dubai.
According to Bayut’s 2025 Dubai Real Estate Market Report, the rise in property supply has been met with stable demand, resulting in price movements that reflect the resilience and strength of Dubai’s real estate market.
Affordable and Mid-Market Segments Lead Demand
Areas such as Dubai Silicon Oasis, Arjan, DAMAC Hills 2, and Dubai South remained popular among buyers seeking affordable properties, the report said.
In the mid-market segment, demand remained steady in Jumeirah Village Circle, Business Bay, Al Furjan, and Arabian Ranches 3, while luxury investors continued to favor Dubai Marina, Downtown Dubai, Dubai Hills Estate, and DAMAC Hills.
Apartment Price Trends
Prices for low-end apartments rose between 9% and 29%, with Dubai Silicon Oasis recording the highest growth following the announcement of the Blue Line metro project.
Average prices per square foot for mid-range apartments increased by up to 11%, while luxury apartment prices rose between 4% and 7%.
Villa Prices Record Broad Gains
Villa prices increased across high-demand areas in 2025. Prices for affordable villas rose by up to 24%, with Dubai South and Dubailand posting growth exceeding 20%, supported by new project handovers.
Mid-market villas recorded price increases ranging from 17% to 28%, while luxury villas saw gains of up to 16% in areas such as Arabian Ranches, Dubai Hills Estate, and DAMAC Hills.
Rental Yields Remain Attractive
Affordable apartments in International City, Dubai Investment Park, and Discovery Gardens achieved rental yields of 9% to 10%.
Mid-market areas such as Living Legends, Town Square, and Al Furjan posted yields between 7% and 9%, while luxury apartments in Al Sufouh, DAMAC Hills, and Green Community recorded yields exceeding 7.62%.
Villas also delivered competitive returns, with DAMAC Hills 2, Serena, and International City leading the affordable segment at yields above 5.4%.
Rental Market Shows Mixed Movements
Bayut data indicated overall stability in Dubai’s rental market by the end of 2025, with continued momentum in affordable areas.
Rents for low-end apartments increased by up to 21%, while mid-market apartment rents rose by up to 7%. In contrast, luxury apartment rents remained broadly stable, with declines of up to 5% in select areas such as Dubai Marina and Dubai Creek Harbour.
Rents for affordable villas increased between 5% and 24%, while select mid-market villas, particularly four-bedroom units in Arabian Ranches 3, recorded sharp gains driven by new supply.
Meanwhile, luxury villa rents declined by up to 24%, although certain large villas in Dubai Hills Estate posted notable increases due to limited supply.
✦ ArchUp Editorial Insight
Bayut’s 2025 Dubai Real Estate Market Report outlines a city largely shaped by Contemporary, master-planned residential development, where repetitive mid-rise apartment blocks and low-density villa compounds prioritize efficiency, standardized Material Expression, and market-driven Spatial Dynamics. Areas such as Dubai Silicon Oasis, JVC, and DAMAC Hills illustrate a pragmatic architectural language aligned with infrastructure-led growth rather than formal experimentation. However, the sustained price escalation raises critical questions about Contextual Relevance and long-term Functional Resilience, particularly in peripheral zones where urban fabric depends heavily on future transit delivery and speculative absorption. While affordability segments appear socially responsive, the risk of mono-functional enclaves and limited public realm integration persists. Ultimately, the market reflects Dubai’s Architectural Ambition to balance scalability with resilience, though its spatial legacy will depend on deeper urban integration.
