With an incredible Dh13,068 per square foot, Jumeirah Bay Island dominates the ultra-luxury market, greatly surpassing other affluent neighbourhoods, data shows.

According to research from Driven Properties and Forbes, Jumeirah Second and Umm Al Sheif come next, both of which have prices above Dh7,500 per square foot, demonstrating the high demand for villas and low-density beachside communities. A combination of exclusivity, limited supply, and prime waterfront or central positioning supports the continued dominance of well-known prestige locations like La Mer, Bluewater’s Island, Palm Jumeirah, and Emirates Hills.

With ultra-high net worth people and foreign buyers seeking both lifestyle and capital preservation, Dubai has successfully repositioned itself as a destination for luxury real estate, as evidenced by the high price points found in these neighborhoods. Premium districts retain their attraction due to strong capital values, while inexpensive and mid-market zones like Jumeirah Village Circle are driving high transaction volumes.

These premium locations are a good fit for the city’s overall market performance, analysts say. A mature, multi-layered market that serves a wide range of consumer profiles with unique offerings around the city is indicated by the strength of the luxury and value categories at the same time.

Consistent price growth reflecting market confidence

The average price of ready residential properties rose from Dh1,002 per square foot in Q1 2021 to Dh1,642 per square foot in Q2 2025, marking a 64% increase in the first half over four years.

This steady growth reflects strong end-user and investor demand, especially for completed inventory offering immediate rental income and lower risk.

The market shows healthy momentum without overheating, with gains spread gradually across both villa and apartment segments.

Apartment and villa prices converging, signaling broad-based demand

Apartments grew from Dh1,036 per square foot in Q1 2021 to Dh1,763 per square foot in Q1 2025, while villas surged from Dh1,010 per square foot to Dh1,903 per square foot in the same period. By Q2 2025, prices for both asset types nearly aligned (Dh1,903–1,904 per square foot), reflecting balanced demand across lifestyle preferences from apartment living to family-oriented homes.

“This convergence suggests a mature, diversified buyer base, where both investor and end-user segments are active across property types depending on location, amenities, and long-term value,” the report said.

Over the past four years, Dubai’s residential market has experienced a strong and consistent upward trend in transaction volumes, with total quarterly transactions increasing from just over 10,000 in Q1 2021 to more than 51,000 in Q2 2025. This growth has been driven by a combination of population expansion, government incentives (e.g., Golden Visa), and sustained investor confidence.

Off-plan transactions have grown more than eightfold, from 4,219 in Q1 2021 to 36,184 in Q2 2025, reflecting developers’ aggressive launch pipelines and buyer appetite for flexible payment plans, branded residences, and lifestyle-led communities. In contrast, ready property sales have risen at a slower but steady pace, reaching 15,170 in Q2 2025. This divergence underscores Dubai’s evolution into a developer-led market, where off-plan stock now captures more than

70% of total quarterly transactions. However, the steady growth in ready sales suggests continued demand from end-users and yield-seeking investors who prioritide immediate occupancy and rental income.

Strong price growth driven by apartments and quality-focused supply

Off-plan residential prices in Dubai increased from Dh1,354 per square foot in Q1 2021 to Dh1,866 per square foot in Q2 2025, reflecting a 38% rise in the first half over four years. This growth has been led by the apartment segment, which consistently recorded higher price points, reaching Dh2,288 per square foot in Q2 2025.

The sustained upward trend reflects demand for well-located, branded, and lifestyle-driven developments, supported by attractive developer payment plans and

strong investor appetite. The recent flattening of the growth curve since 2024 suggests the market is entering a more stable and mature pricing cycle, driven by fundamentals rather than speculation.

Off-plan villa prices more than doubled from Dh834 per square foot to Dh1,682 per square foot, reflecting growing demand for spacious, low-density living in integrated and familyoriented communities.

“The narrowing gap between apartment and villa prices points to broad-based buyer confidence, with end-users and investors showing strong interest across asset types. As price growth moderates, the off-plan segment appears to be shifting into a more balanced and strategic phase, where project quality, location, and developer credibility are increasingly influencing purchasing decisions,” the report said.

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Source: Khaleej Times 

15th September, 2025