Dubai, UAE: Bayut, the UAE’s premier property portal, has released its statistical data analysis of the most searched-for real estate areas in Dubai during Q1 2025. 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.

Property Buying Trends in Dubai

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%.

  • 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 Dubai, 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%, with villa prices climbing by up to 6%. Apartments in the mid-range sector have witnessed price increases of between 1% and 11%, with Business Bay an outlier by recording a decrease in transactional price of 3.09% - 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% and 21% for villas and up to 11% for apartments. DAMAC Hills has experienced the steepest increase in villa transactional prices (20.7%), 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 a little over AED 142 billion. The ready property market accounted for over 15,000 transactions worth AED 64 billion, while off-plan properties saw over 29,000 sales valued at AED 78 billion.

Dubai Real Estate ROI Return on Investment Hotspots

  • 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% and 11%. Mid-range communities, including Living Legends, Al Furjan and Town Square have recorded returns of between 8% and 11%. Luxury apartments in Al Sufouh, Green Community and DAMAC Hills have offered rental yields exceeding 7.88%.
  • For villas,, DAMAC Hills 2, Serena and International City have led the affordable segment with ROIs of above 5.71%. Mid-tier villa communities such as Jumeirah Village Circle, Motor City and Mudon have reported returns of between 5% and 8%. The high-end villa communities of Al Barari, Dubai Creek Harbour and Mohammed Bin Rashid City have achieved ROIs surpassing 5.82%.

 

Trends for Renting Properties in Dubai

Whilst Bayut's data has shown a general theme of rental increases across the market, there have been some notable exceptions.

  • Affordable apartment rents have mostly increased by between 1% and 3%, but certain units in Deira and Bur Dubai have been reporting decreases of up to 7%. Mid-range rentals have experienced 1% to 5% hikes. Interestingly, luxury apartment rents for 3-Bed in both Dubai Marina and Dubai Creek Harbour have seen minor decreases of 3.52% and 2.11%, respectively.
  • Affordable villa rentals have surged by up to 11% in the prominent districts. Mid-tier villa rents have generally risen by up to 3%, with exceptions being 3 and 4-bed units in Al Furjan and 5-bed units in JVC which have recorded rent decreases of up to 7%. Luxury villa rentals surged by up to 75%, with 5-bed units in Dubai Hills Estate leading the price hikes subsequent to the influx of new inventory in Fairways, Golf Place Terraces and Maple.
  • Dubai Residence Complex and Bur Dubai have been popular for affordable apartment rentals, while DAMAC Hills 2 and Mirdif were preferred for villas. In the mid-tier segment, JVC and Business Bay stood out for apartment rentals, with Al Furjan and JVC attracting the most interest from tenants for villa rentals. For luxury properties, Dubai Marina and Downtown Dubai maintained their status as prime choices for apartments, while Jumeirah and DAMAC Hills were top picks for luxury villas.

Dubai's property market is thriving, with transaction volumes in January up a staggering 22.9% year-on-year. Beyond economic stability and infrastructure growth, this surge is driven by government initiatives supporting foreign investment, contributing to a rising population that now exceeds 3.8 million. The luxury sector remains a key driver, with high-end sales nearly doubling due to strong demand from affluent buyers. Additionally, the rise of sustainable developments and master-planned communities has attracted both investors and end-users seeking modern, eco-friendly living spaces.

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 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.

At Bayut, we’re dedicated to making searching for a home easier. With the addition of TruBroker to our range of essential resources, we’ve brought peace of mind to property-seekers who may be feeling overwhelmed about where to start the search for their perfect home. TruBroker allows property-seekers to reach out to and work with the top brokers in a particular community. These exceptional brokers are easily visible on the location pages on Bayut, giving them the recognition they deserve, while also ensuring Bayut users can navigate the property market with confidence."

-Ends-

Note to Editor: For an accurate representation of price changes, this report compares the average price-per-square-foot in an area to analyse sales trends for villas and apartments in Q1 2025 to those observed in Q4 2024. These prices are however subject to change, based on the building, amenities, developer and other deciding factors. For the rental properties, the report compares the average cost for individual unit types between the two periods, in popular Dubai neighbourhoods.

Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and is not representative of actual real estate transactions conducted in Dubai except for instances where the DLD has been quoted.