From JVC to Dubai South: These areas saw the biggest price and rent gains in 2025

Dubai: Dubai's property market closed 2025 with steady price gains across apartments and villas, as new supply finally matched robust buyer demand in affordable and mid-range segments. Bayut and Dubizzle reports show average sale prices per square foot rising by 9-29% for apartments and up to 28% for villas. Luxury areas posted gains of 4 to 16%, while rental yields remained attractive at 7 to 10% in budget communities.

Affordable apartment areas led the gains. Dubai Silicon Oasis posted the highest jump after Blue Line Metro news, with prices up 29% per square foot. Arjan, DAMAC Hills 2, and Dubai South followed, with new inventory drawing first-time buyers at 9-25%. Mid-market apartments in Jumeirah Village Circle, Business Bay, Al Furjan and Arabian Ranches 3 saw increases up to 11%, driven by steady family demand and handovers.

Villas tracked similar momentum. Dubai South and Dubailand recorded over 20% growth in affordable housing units following project completions. Mid-tier villa prices in Murooj Al Furjan and Bliss at Arabian Ranches 3 climbed 17 to 28%. Luxury villa districts, including Arabian Ranches, Dubai Hills Estate and DAMAC Hills, saw up to 16% rises, supported by tight supply in premium formats.

Dubai Investment Park stood out in dubizzle data, with villa prices averaging Dh2.17 million and per-square-foot prices surging to Dh773. Dubai Silicon Oasis apartments reached Dh1,501 per square foot, the sharpest rise in that category.

Investors found strong returns in accessible areas. Affordable apartments in International City, Dubai Investments Park, and Discovery Gardens delivered yields of 9-10%. Mid-tier options in Living Legends, Town Square, and Al Furjan returned 7-9%. Luxury apartments in Al Sufouh, DAMAC Hills and Green Community exceeded 7.62%.

Villas offered a solid income, too. DAMAC Hills 2, Serena and International City led affordable yields above 5.4%. JVC, Mudon, and Town Square posted 5-7% in mid-market. Luxury villas in Mohammed Bin Rashid City, Al Barsha and Al Barari achieved over 5.8%. Dubizzle highlighted Town Square at 7.72% for mid-tier apartments and DAMAC Lagoons at 10.46% for villas.

“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," said Haider Ali Khan, CEO of Bayut, Head of Dubizzle Group MENA, and Board Member of the Dubai Chamber of Digital Economy. "Buyers and tenants today are placing far greater emphasis on lifestyle, location and build quality.”

Rents largely steadied across Dubai, with affordable segments showing momentum as residents chased budget options. Affordable apartment rents rose to 21%, led by Deira family units. Mid-tier apartments increased by up to 7%. Luxury flats held mostly flat, though Dubai Marina and Dubai Creek Harbour saw up to 5% drops in select stock.

Affordable villa rents climbed 5 to 24%, with Dubai South four-bedroom units leading after Emaar South handovers. Mid-tier villas rose to 15%, though Arabian Ranches 3 four-bedroom rents jumped nearly 70% from new Caya and Bliss deliveries, averaging Dh254,000 annually. Luxury villa rents dipped up to 24% overall, but Dubai Hills Estate five- and six-bedroom units surged 79.5% and 27.7% on supply constraints.

Dubizzle confirmed rental hotspots. Dubai Marina dominated luxury apartments, JVC and International City led mid-tier and budget. Al Barsha topped the luxury villas, with Al Furjan and DAMAC Hills 2 strong in the mid- and affordable-segments. International City's affordable apartments hit an average annual rent of Dh53,000, the segment's biggest jump.

Off-plan sales accounted for the bulk of activity, offering flexible payment plans across price points. Luxury apartments drew buyers to Dubai Marina, Dubai Hills Estate and Dubai Creek Harbour projects. Mid-tier developments thrived in Business Bay, JVC and Al Furjan. Affordable off-plan apartments found takers in Dubai Investment Park, Dubai Land Residence Complex and Dubai South.

Villa off-plan interest concentrated in master communities. DAMAC Lagoons, The Valley by Emaar and Mohammed Bin Rashid City led luxury. Arabian Ranches 3, Mudon and Nad Al Sheba attracted mid-market families. Budget villa projects gained ground in R. Hills, Chevalia Estate and Verona. The segment's strength reflects buyer confidence in developer delivery and staged payments.

Ready properties showed clear favourites. Dubai Marina topped the luxury apartments, JVC led the mid-tier, and International City dominated the affordable. DAMAC Lagoons ruled luxury villas, Al Furjan handled mid-tier, and DAMAC Hills 2 handled affordable. Short-term rentals remained robust, with Dubai Marina, Downtown Dubai, and Meydan City attracting monthly demand for luxury apartments.

Palm Jumeirah, Dubai Hills Estate, and DAMAC Hills led high-end villa short-stay bookings. JVC, Business Bay and Al Barsha saw strong mid-tier apartment interest, while Arabian Ranches 3 and The Springs pulled villa renters. Affordable short-term rentals centred on International City, Bur Dubai, and Deira, with DAMAC Hills 2 leading budget villas and Bur Dubai, Deira, and DSO handling daily demand.

Both reports point to a sector balancing supply increases with sustained demand. Population growth, infrastructure projects, government initiatives and handovers support the trends.

Affordable and mid-market areas absorbed new stock while delivering yields and capital gains. Luxury held steady through selective demand. Buyers and renters prioritised lifestyle, location and quality over pure price momentum, marking Dubai's transition toward sustainable residential dynamics.