Bayut 2025: Dubai Property Prices Show Healthy Fundamentals

Bayut, the UAE’s leading PropTech portal, has released its 2025 Dubai Property Market Report, offering an in-depth look at sales and rental performance across the affordable, mid-market, and luxury segments. The analysis indicates a market where rising supply is being met with steady demand, resulting in price movements that reflect a healthy and resilient property sector.

Dubai Property Sales: Key Trends

Bayut’s 2025 data has highlighted sustained upward movement in average sale prices per square foot for both apartments and villas across popular neighbourhoods.

● In the affordable segment, communities such as Dubai Silicon Oasis, Arjan, DAMAC Hills 2 and Dubai South have continued to attract value-focused buyers. Mid-market demand has remained steady in areas including Jumeirah Village Circle, Business Bay, Al Furjan and Arabian Ranches 3, while high-end investors continued to favour established luxury locations such as Dubai Marina, Downtown Dubai, Dubai Hills Estate and DAMAC Hills.

● Apartment prices in affordable areas have recorded increases of between 9% and 29%, with Dubai Silicon Oasis seeing the highest growth following the announcement of the Dubai Metro Blue Line. Average prices per square foot for mid-tier apartments in Dubai’s popular neighbourhoods have risen by up to 11%, while prices for luxury flats have recorded increases ranging from 4% to 7%.

● Villa prices have increased across Dubai’s sought-after districts. Over the course of 2025, prices for affordable houses have risen by up to 24%, with Dubai South and Dubailand recording growth of more than 20%

following an influx of new inventory after recent handovers. Asking prices for mid-tier villas have increased between 17% and 28%, supported by handovers in communities such as Murooj Al Furjan in Al Furjan and Bliss and Caya in Arabian Ranches 3. In the luxury segment, villa prices have increased by up to 16% in popular areas like Arabian Ranches, Dubai Hills Estate and DAMAC Hills.

Rental Yields: Investment Hotspots

● Affordable apartments in International City, Dubai Investments Park and Discovery Gardens have delivered strong rental yields ranging between 9% and 10%. In the mid-tier segment, Living Legends, Town Square, and Al Furjan have achieved returns of 7% to 9%. Luxury apartment investments in Al Sufouh, DAMAC Hills, and Green Community have generated yields exceeding 7.62%.

● Villas have also continued to offer attractive returns. DAMAC Hills 2, Serena and International City have led the affordable category with yields above 5.4%, while mid-market villa communities such as JVC, Mudon and Town Square posted returns of 5% to 7%. In the luxury segment, villas in Mohammed Bin Rashid City, Al Barsha and Al Barari have achieved rental yields of more than 5.8%.

Rental Market: Mixed Movements

Bayut’s year-end 2025 data has shown a rental market that has largely stabilised overall, while affordable communities continue to see momentum as residents prioritise budget-friendly housing options.

● Tenants have shown a strong inclination towards the affordable apartments in Arjan and Bur Dubai, while DAMAC Hills 2 and Mirdif remained popular choices for budget villa rentals. In the mid-market segment, tenants gravitated towards JVC, Business Bay, Al Furjan and Arabian Ranches 3. On the luxury end, Dubai Marina and Downtown Dubai have remained the most sought-after apartment locations, while Dubai Hills Estate and DAMAC Hills continued to lead luxury villa demand.

● Rents for affordable apartments have increased by up to 21%, with Deira recording the highest rises in asking rents for family-sized units. Asking rents for mid-tier apartments have seen increases of up to 7%. Luxury apartment rents, meanwhile, have remained largely stable, although select units, particularly in Dubai Marina and Dubai Creek Harbour, have recorded declines of up to 5%.

● Affordable villa rents have increased by between 5% and 24%, with the strongest growth recorded for four-bedroom villas in Dubai South following handovers in Emaar South and the Residential District. Mid-tier villa rents have generally risen by up to 15%. However, four-bedroom units in Arabian Ranches 3 have reported an almost 70% surge in rental costs, largely driven by new home deliveries in the Caya and Bliss sub-communities.

● Luxury villa rents have broadly declined by up to 24%. That said, five- and six-bedroom villas in Dubai Hills Estate have seen increases of 79.5% and 27.7% respectively, reflecting tight supply in this segment.

Dubai’s real estate market is showing steady, balanced growth. It is being shaped by a combination of rising supply, sustained buyer demand, and evolving lifestyle preferences. Affordable and mid-market communities continue to attract value-conscious residents, while luxury districts remain favoured by high-net-worth investors. Price movements reflect these fundamentals, supported by population growth, new infrastructure, government initiatives, and handovers of new developments, all contributing to a balanced and resilient real estate landscape.

Commenting on the findings, 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 is entering a more mature phase, where new supply is increasingly aligned with genuine end-user demand rather than short-term speculation. While price sensitivity will always play a role, buyers and tenants today are placing far greater emphasis on lifestyle, location and build quality. Our focus at Bayut is to support this evolution by enabling clearer, more informed decision-making through reliable data, transparent listings and practical insights that bring confidence to every step of the property journey.”