Dubai Real Estate Market Booms in Q1 2025, Reports Strong Growth Across All Segments
Dubai, UAE – April 8, 2025 — Dubai’s real estate market continued its upward momentum in the first quarter of 2025, posting strong growth across all segments—from luxury to affordable housing—according to a new report from dubizzle, the UAE’s largest classified platform.
The report attributes the market’s performance to a combination of rising investor confidence, a surge in tourism, and government-led initiatives that have cemented Dubai’s reputation as a global real estate investment hub.
Luxury Segment Leads the Way
Dubai Marina remains the city’s top destination for luxury apartments, with an average sales price of AED 2.52 million and annual rents of AED 139,000—translating to a healthy 5.84% return on investment (ROI). For luxury villas, Dubai Hills Estate led the pack, averaging AED 17.77 million and offering a 4.41% ROI. Palm Jumeirah followed closely with villa prices averaging AED 47.48 million and a 3.63% ROI.
Strong Returns in Mid-Tier Market
In the mid-tier segment, Jumeirah Village Circle (JVC) stood out for apartments, boasting an average sale price of AED 1.18 million and an annual rent of AED 79,000—yielding a robust 7.38% ROI. Al Furjan led the mid-tier villa segment, with properties averaging AED 5.8 million and rental returns of 5.69%. Business Bay and JLT were also highlighted as top-performing mid-tier apartment areas, while Arabian Ranches 3 showed rising popularity for villas.
Affordable Segment Shows Impressive ROI
Affordable housing continued to deliver strong investment returns. DAMAC Hills 2 emerged as a top performer for affordable villas, with average prices of AED 1.96 million and rental returns of 7.14%. In the apartment category, Dubai Silicon Oasis led in sales, while International City offered the most affordable rents, averaging AED 52,000 annually. Notably, Dubai Investments Park offered the highest ROI in this category—8.79% for apartments and a remarkable 12.16% for villas.
Off-Plan Market Thrives
The off-plan sector also showed no signs of slowing down. In the luxury segment, Elvira in Dubai Hills Estate and St. Regis The Residences in Downtown Dubai attracted strong investor interest with average prices starting from AED 2.5 million and AED 4.28 million respectively.
For mid-tier off-plan properties, Binghatti Skyrise in Business Bay and Wind Towers in JLT recorded strong demand, with apartment prices averaging AED 1.7 million and AED 700,000. Affordable options such as Verdana Residence in Dubai Investments Park (AED 607,000) and 48 Parkside in Arjan (AED 1.62 million) also drew investor attention.
Among off-plan villas, DAMAC Lagoons’ Venice project led the luxury market, starting at AED 6.77 million. Emaar’s Farm Grove in The Valley averaged AED 5.21 million, while Arabian Ranches 3 continued to be a go-to for mid-tier buyers. In the affordable villa category, Verdana 2 in Dubai Investments Park and R. Hills in Dubailand offered entry points under AED 2.2 million.
With continued infrastructure development, population growth, and global investor interest, the outlook for Dubai’s real estate market remains optimistic heading into the rest of 2025. The latest figures reflect not only the sector’s resilience but also its capacity to deliver solid returns across a wide range of investment brackets.
