The Dubai real estate sector saw sales of more than AED142bn ($38.7bn) in Q1, according to Bayut statistical data analysis.
The data points to a steady increase in property prices across key areas, driven by strong demand, consistent inventory supply, and Dubai’s appeal to high-net-worth individuals drawn to its robust economy and favourable tax environment.
Bayut’s insights have shown price hikes for both apartments and villas, with villa prices in DAMAC Hills recording the highest increases of up to 21 per cent.
Dubai real estate Q1 2025
For those seeking budget-friendly options, areas such as Dubai Residence Complex, Dubai Silicon Oasis, DAMAC Hills 2 and Dubailand have been prominent choices.
Mid-tier buyers have leaned towards communities such as Jumeirah Village Circle, Business Bay, Al Furjan and Reem.
On the luxury front, Dubai Marina, Downtown, Arabian Ranches and DAMAC Hills have continued to attract premium investors.
The prices for apartments in the affordable sector have surged by as much as 10 per cent, with villa prices climbing by up to 6 per cent.
Apartments in the mid-range sector have witnessed price increases of between 1 per cent and 11 per cent, with Business Bay an outlier by recording a decrease in transactional price of 3.09 per cent – potentially due to an increase in transactions of smaller, more budget-friendly inventory during Q1.
Luxury properties have followed a consistent upward trend, with prices climbing from between 11 per cent and 21 per cent for villas and up to 11 per cent for apartments.
DAMAC Hills has experienced the steepest increase in villa transactional prices (20.7 per cent), according to Dubai Land Department (DLD) data.
Bayut’s analysis of Dubai’s property transactions, based on DLD records, shows more than 45,000 property sales recorded in Q1 2025, amounting to more than AED142bn ($38.7bn).
The ready property market accounted for over 15,000 transactions worth AED64bn ($17.4bn), while off-plan properties saw over 29,000 sales valued at AED78bn ($21.2bn).
For investors, affordable apartments in areas such as International City, Dubai Investments Park (DIP) and Discovery Gardens have delivered strong rental yields of between 9 per cent and 11 per cent.
Mid-range communities, including Living Legends, Al Furjan and Town Square have recorded returns of between 8 per cent and 11 per cent.
Luxury apartments in Al Sufouh, Green Community and DAMAC Hills have offered rental yields exceeding 7.88 per cent.
For villas, DAMAC Hills 2, Serena and International City have led the affordable segment with ROIs of above 5.71 per cent. Mid-tier villa communities such as Jumeirah Village Circle, Motor City and Mudon have reported returns of between 5 per cent and 8 per cent.
The high-end villa communities of Al Barari, Dubai Creek Harbour and Mohammed Bin Rashid City have achieved ROIs surpassing 5.82 per cent.
Haider Ali Khan, CEO of Bayut, Head of Dubizzle Group MENA and Board Member of the Dubai Chamber of Digital Economy, said: “Dubai’s property market has started 2025 on a high, building on last year’s momentum. The city continues to attract global investors, with the luxury sector remaining a hotspot for high-net-worth buyers.
“At the same time, the rise of sustainable and master-planned developments is striking a chord with property seekers, reflecting a high demand for housing in all-inclusive communities”.
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