Where to buy property in Dubai: Top real estate hotspots, growth areas for H2 2025

Dubai: Dubai’s real estate market is entering the second half of 2025 with sustained momentum, supported by robust economic performance, growing foreign investment, and evolving buyer behaviour.

As prices in central areas reach new highs, investors are widening their focus—targeting suburban communities, mid-market opportunities, and assets with stable long-term returns.

Economic indicators continue to reinforce investor confidence. The UAE’s GDP is forecast to grow by 5–6% this year, while non-oil sectors now account for over 70% of Dubai’s economy. Tourism, a key pillar, welcomed 19 million visitors in 2024, and foreign direct investment rose by 15% year-on-year. These factors helped lift Dubai’s main stock index to a 17-year high earlier this year.

Against this backdrop, a mid-year outlook by real estate consultancy Oia Properties identifies several emerging trends and market shifts likely to shape investment activity through the rest of 2025.

One of the most pronounced trends this year is the move toward suburban living. Oia Properties notes that communities such as Dubai South and Dubailand are seeing heightened demand due to more competitive pricing, future infrastructure developments, and a growing preference for space and family-friendly environments.

Transaction volumes in these districts rose by over 35% in early 2025 compared to the same period last year. Suburban rental yields are averaging between 6–7%, outperforming urban zones like Downtown Dubai or Dubai Marina, which typically return 4–5%.

For example, average apartment prices in Dubai South hover around AED 954 per square foot, offering a relatively affordable entry point for long-term investors looking to benefit from the area’s proximity to Expo City and Al Maktoum International Airport.

The surge in demand for villas—initially sparked during the pandemic—has continued into 2025. According to Oia, villas now account for 28% of all residential sales, up from 18% in 2022, driven by a desire for larger homes and private outdoor spaces.

However, after several years of sharp appreciation—up to 25% since 2022—this segment may be approaching a plateau. Oia forecasts a 12–15% increase in new villa supply over the next 12 months, potentially leading to a moderate price correction of 5–10% by late 2025 or early 2026.

Branded residences remain a niche but rapidly growing segment. These properties, often affiliated with luxury hotel or automotive brands, are commanding premiums of 30–40% over comparable non-branded units.

Oia’s data indicates that more than 60% of buyers in this category are international investors or second-home purchasers. While inventory grew by 23% in 2024, demand in key districts continues to outpace supply, particularly in locations tied to high-end lifestyle offerings.

In terms of location, Oia Properties highlights several neighbourhoods to watch in the second half of the year. Alongside Dubai South, Dubai Hills Estate continues to attract affluent families and professionals. Villas here average Dh10 million, with projected annual appreciation of just over 9%, supported by strong demand and premium community features.

Arabian Ranches remains a reliable performer in the suburban segment, with villas averaging AED 1.9 million and prices having risen 13% in Q3 2024. Its appeal lies in its schools, green spaces, and community infrastructure.

Luxury areas such as Palm Jumeirah and Dubai Marina continue to draw high-net-worth buyers. Villas on Palm Jumeirah average AED 25 million, with annual price growth of 7.7%, while Dubai Marina apartments (averaging AED 2.3 million) saw a 7.8% rise in value year-on-year.

Business Bay also saw a 5.9% increase in prices, driven by its mix of residential and commercial developments and proximity to Downtown. Meanwhile, Downtown Dubai, once a growth leader, is beginning to stabilise. Apartments now average AED 2.5 million, with year-on-year growth at 2.9%.

For entry-level investors, Jumeirah Village Circle (JVC) remains a noteworthy option. With average apartment prices around AED 880,000, JVC experienced an 8.3% price decline over the past year, but high rental yields and transaction volumes point to long-term resilience.

Oia Properties concludes that while Dubai’s real estate market remains robust, investor behaviour is becoming more selective and value-conscious. Key considerations now include rental yields, community infrastructure, affordability, and long-term development pipelines.

As H2 2025 progresses, the next phase of growth may well be driven by suburbs, mid-market housing, and alternative property formats that offer a better balance of price and potential.