Flats or villas? What's more expensive now in Dubai’s red-hot property market

Apartment prices are rising faster in Dubai this year, but villas still win in long run

Last updated:
Justin Varghese, Your Money Editor
2 MIN READ
A picture shows beachfront villas in the Palm Jumeirah in the Gulf emirate of Dubai on July 8, 2025.
A picture shows beachfront villas in the Palm Jumeirah in the Gulf emirate of Dubai on July 8, 2025.
AFP-FADEL SENNA

Dubai: Dubai’s property market is staying strong in 2025 — and if you're wondering whether it’s better to buy an apartment or a villa, the latest data has some clear trends.

According to a new analysis by real estate firm eXp Dubai, home prices in the city rose by 3.3% during the first quarter of this year. Compared to the same time in 2024, overall property values are up by a healthy 12%. That’s good news for investors and owners alike — but what’s interesting is where that growth is coming from.

So far in 2025, apartments (flats) are appreciating faster than villas, with flat prices rising 3.8% in Q1 versus a 2.4% uptick for villas. This shift is being driven by younger professionals and working expats looking for central locations, easier commutes, and access to amenities.

“Flats offer proximity to business hubs and transport links, which aligns with what many buyers in Dubai’s fast-paced workforce want,” said Dounia Fadi, Managing Director at eXp Dubai. “It’s a very urban lifestyle choice.”

Villas still the long-term champions

While flats are leading the charge in 2025, villas are still the bigger winners over the past year. According to eXp, villa prices rose by a whopping 19.7% year-on-year, compared to 8.5% for flats.

The reason? Families and long-term residents are driving demand for more space, privacy, and suburban-style living — especially as remote work and hybrid work models remain popular across the UAE.

“While flats cater to younger professionals, villas are attracting growing families,” added Fadi. “That balance keeps Dubai’s property market dynamic and sustainable.”

What this means if you're buying

If you’re considering entering Dubai’s property market, the decision between a flat or a villa may come down to your lifestyle and timeline. Want to ride the short-term appreciation wave? Apartments are surging right now. Thinking long-term or buying a home for your family? Villas continue to prove their worth.

In either case, the market shows no signs of slowing. Whether you're investing, upgrading, or relocating, Dubai’s real estate continues to offer opportunities — both now and over the long haul.

Justin Varghese
Justin VargheseYour Money Editor
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.
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