Should you buy property in Dubai now?

Authored by the expert who managed and guided the team behind the UAE Property Pack

Yes, the analysis of Dubai's property market is included in our pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Dubai. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Dubai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in areas like Downtown, Dubai Marina, and Palm Jumeirah. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Jean-Charles Salvin 🇫🇷

Co-Founder, Best Dubai Condos

With 13 years of real estate expertise, Jean-Charles co-founded BestDubaiCondos to guide clients in making smart, strategic property investments. As a seasoned realtor and trusted advisor, he focuses on creating personalized investment plans designed to maximize profits through Airbnb rentals and long-term income opportunities in Dubai's most desirable locations. We talked with him at the end and added his insights to improve the blog post, making it clearer and more personal.

What are property prices in Dubai doing right now compared to six months and one year ago?

As of September 2025, Dubai property prices show mixed performance depending on the property type and timeframe you examine.

Villa prices have experienced dramatic growth, surging approximately 32% year-on-year across Dubai. The most expensive areas like Jumeirah Islands and Palm Jumeirah have seen annual increases reaching 41% and 40% respectively. This represents some of the strongest villa price appreciation in Dubai's recent history.

Apartment prices tell a different story with more moderate growth. Over the past 12 months, apartment prices rose 12% on average. However, when looking at the shorter six-month timeframe, apartment prices actually dipped slightly by around 2%, suggesting some cooling in this segment.

Townhouses have shown moderate gains, sitting between apartments and villas in terms of price appreciation. The average townhouse price now stands at approximately AED 3 million, representing steady but not explosive growth.

ValuStrat and Fitch are forecasting continued increases of up to 10% by the end of 2025, but they also warn of a potential moderate correction of up to 15% expected in late 2025 due to mounting supply pressures.

How do prices and rental yields differ between apartments, villas, and townhouses?

The Dubai property market shows significant variations in both pricing and rental returns across different property types.

Apartments offer the most accessible entry point with an average price of approximately AED 1.3 million. Current year-on-year price growth sits at 12%, and typical rental yields in key districts range from 5% to 6.8%. Studios tend to achieve the highest rental yields within the apartment category, often reaching 6-8%.

Villas represent the premium segment with an average price of AED 5.2 million, reflecting the strong 32.2% increase over the past 12 months. While rental yields are historically lower at 3-5%, villas deliver the strongest capital appreciation, with annual growth rates of 20-29% or more in top areas like Palm Jumeirah and Emirates Hills.

Townhouses sit in the middle ground with an average price of AED 3 million. They offer rental yields near 5.5% and provide moderate long-term appreciation potential, making them attractive for investors seeking balanced returns between income and capital growth.

The choice between property types depends on your investment strategy: apartments for immediate rental yields and liquidity, villas for long-term capital appreciation, and townhouses for balanced returns.

Which areas of Dubai are seeing the strongest price growth in the short term, and which are stable or declining?

Dubai's property market shows dramatic variations in performance across different neighborhoods and districts.

Area	Property Type	Annual Growth	Performance Level
Jumeirah Islands	Villas	41%	Strongest Growth
Palm Jumeirah	Villas	40%	Strongest Growth
Emirates Hills	Villas	35-38%	Strong Growth
The Meadows	Villas	30-35%	Strong Growth
The Greens	Apartments	25-30%	Strong Growth
Dubai Silicon Oasis	Apartments	22-28%	Strong Growth
Business Bay	Apartments	11-16%	Stable/Moderate
International City	Apartments	11-15%	Stable/Lowest

The strongest short-term growth is concentrated in premium villa communities, with Jumeirah Islands and Palm Jumeirah leading at 41% and 40% annual increases respectively. Emirates Hills and The Meadows also show exceptional performance in the 30-38% range.

For apartments, The Greens, Dubai Silicon Oasis, Dubai Land Residence Complex, and Town Square are experiencing the strongest growth with annual rises between 22-30%. These areas benefit from new infrastructure and increasing demand from both residents and investors.

What are the average rental returns across key districts like Downtown, Dubai Marina, Palm Jumeirah, and JVC?

Rental yields vary significantly across Dubai's key investment districts, with each area offering distinct advantages for property investors.

Downtown Dubai delivers rental yields ranging from 4.4% to 6.8%, with the higher end typically achieved by smaller units like studios and one-bedroom apartments. The area's premium location and tourist appeal support strong rental demand throughout the year.

Dubai Marina offers similar returns with yields between 4.7% and 6.8%. The marina lifestyle and waterfront location attract both short-term visitors and long-term residents, making it consistently popular for rental properties. Studios and smaller units again achieve the higher yield ranges.

Palm Jumeirah shows yields from 5.2% to 6.7%, which is impressive given the premium nature of properties in this location. The unique island lifestyle and luxury amenities justify higher rents, supporting these strong yields even on expensive properties.

Jumeirah Village Circle (JVC) currently offers some of the best yields in Dubai, ranging from 5% to 7%. This emerging area benefits from more affordable property prices while attracting strong rental demand due to its family-friendly environment and growing infrastructure.

It's something we develop in our UAE property pack.

How much supply is expected to hit the market in the next 12 to 24 months, and where?

Dubai faces a massive supply surge that will significantly impact the property market over the next two years.

Nearly 250,000 new units are scheduled for completion by 2026, with approximately 120,000 units hitting the market in 2026 alone. This represents one of the largest supply increases in Dubai's recent history and will likely create downward pressure on both prices and rental rates.

The new supply is concentrated in several key areas. Jumeirah Village Circle (JVC) will see substantial new developments, building on its current popularity among investors. Sobha Hartland II, a newer master-planned community, will add significant luxury inventory to the market.

Major off-plan launches contributing to this supply include developments like Binghatti Skyrise and Wilds 3, along with numerous other projects across emerging neighborhoods. These new developments often target the mid-market segment, which could particularly impact pricing in the AED 1-3 million range.

The supply influx is expected to create opportunities for buyers later in 2025 and into 2026, as developers may offer attractive payment plans and pricing to move inventory. However, current property owners should be prepared for potential price corrections, particularly in areas with the highest new supply concentrations.

What do transaction volumes and mortgage approvals indicate about current buyer demand?

Transaction data reveals a robust but evolving buyer market in Dubai's property sector as of September 2025.

The 2024-2025 period has seen record transaction volumes and sales values, indicating exceptionally strong buyer activity. This surge reflects both local and international investor confidence in Dubai's property market, supported by favorable government policies and economic stability.

However, recent data signals some normalization in buyer demand as affordability concerns begin to impact the market. Rising property prices, particularly in the villa segment with its 32% annual increase, are pricing out some buyer segments and creating natural demand constraints.

Mortgage approvals remain robust, suggesting that financing accessibility continues to support buyer activity. Banks are still actively lending for Dubai property purchases, though they're becoming more selective about loan-to-value ratios and borrower qualifications as prices rise.

The market is showing signs of becoming more selective, with buyers focusing on prime locations and properties with strong rental potential. This shift suggests a maturing market where investors are becoming more strategic rather than purely opportunistic.

As we approach the major supply influx in late 2025 and 2026, buyer behavior may shift toward waiting for better deals, particularly in segments where oversupply is expected.

How do purchase costs, fees, and taxes compare across property types and price ranges?

Dubai maintains standardized fees and costs across all property types, making it relatively straightforward to calculate total investment requirements.

The primary costs include a transfer fee of 4% plus AED 540, which applies regardless of property type or price. Additionally, buyers typically pay a broker commission of 2% plus VAT, and registration fees ranging from AED 5,000 to AED 10,000 depending on the property value.

One significant advantage of Dubai's property market is the absence of annual property taxes, which reduces ongoing ownership costs compared to many international markets. However, service charges do vary by property type and district, with luxury developments and prime locations typically commanding higher annual fees.

A notable distinction exists between off-plan and completed properties in terms of cost structure. Off-plan units can cost up to 60% more per square meter than completed resale units, representing a higher entry cost but often providing more flexible payment terms during construction.

For a typical AED 2 million apartment purchase, total costs including fees would be approximately AED 2.13 million. For a AED 5 million villa, total costs would reach approximately AED 5.33 million. These standardized fees make financial planning more predictable across different property segments.

What is the outlook for property values in Dubai over the next three to five years?

Dubai's property market outlook for 2025-2030 shows continued growth potential but with increasing complexity and volatility.

Property prices are likely to continue climbing at rates of 5-10% annually through 2027, though this represents a moderation from the exceptional growth rates seen in 2024-2025. The villa segment may see some cooling from its current 32% annual growth rate, while apartments could maintain steadier but more modest appreciation.

Short-term volatility is expected as the massive supply surge hits the market in late 2025 and 2026. This could create temporary corrections, particularly in areas with oversupply, but the underlying demand fundamentals remain strong due to Dubai's population growth and economic diversification.

Resilience will be strongest in luxury properties and mature established areas. Villas in prime districts like Palm Jumeirah, Emirates Hills, and Jumeirah Islands are favored for long-term growth and stability. Similarly, apartments in proven locations like Downtown, Dubai Marina, and Business Bay should maintain their value better during market corrections.

The three to five-year outlook supports a buy-and-hold strategy, particularly for investors who can weather short-term volatility. Properties purchased in 2025 at current prices are likely to show positive returns by 2028-2030, assuming buyers select the right locations and property types.

It's something we develop in our UAE property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How do short-term flipping opportunities compare with medium-term holding and long-term investing?

Each investment timeline offers distinct opportunities and risks in Dubai's current property market environment.

Short-term flipping faces higher risks as supply increases mount in late 2025 and 2026. Profits from flipping depend heavily on timing and property selection, with rapidly appreciating off-plan launches potentially offering opportunities for experienced investors. However, the incoming supply surge makes quick turnarounds more challenging and potentially less profitable.

Medium-term holding (2-5 years) currently offers the best balance of capital gains and rental income generation. This strategy allows investors to benefit from both the continuing price appreciation and steady rental yields, especially in new districts and established apartment towers. The timeline also provides flexibility to exit before or after major supply impacts.

Long-term investing (5+ years) delivers the strongest capital protection and most predictable returns. Prime villa locations like Palm Jumeirah and mature apartment clusters in Dubai Marina, Downtown, and Business Bay have historically shown resilience through market cycles. This approach also maximizes the benefits of Dubai's tax-free environment and compound rental income.

The current market conditions favor medium to long-term strategies over short-term flipping due to the supply dynamics and potential price corrections ahead. Investors with longer horizons can better navigate temporary market volatility while benefiting from Dubai's underlying growth fundamentals.

What budget ranges currently offer the best balance of affordability, liquidity, and appreciation potential?

Different budget ranges in Dubai's property market offer distinct advantages for investors seeking optimal returns.

1. **AED 1-2.5 Million Range**: This segment focuses primarily on apartments and offers excellent liquidity and rental yields. Key areas include JVC, Town Square, and The Greens, which provide strong rental demand and good appreciation potential. Studios and one-bedroom apartments in this range typically achieve 5.5-7% rental yields.2. **AED 2.5-5 Million Range**: This budget allows access to larger apartments in prime locations or entry-level villas and townhouses in emerging communities. Properties in this range offer balanced appreciation and income potential, with yields around 5-6% and steady capital growth.3. **AED 5-8 Million Range**: This segment provides access to quality villas in established communities or premium apartments in luxury developments. While yields may be lower (4-5%), capital appreciation potential is stronger, particularly in prime locations.4. **AED 8+ Million Range**: Luxury villas and penthouses in premium locations like Palm Jumeirah and Emirates Hills. These properties offer the strongest capital appreciation (20-40% annually in recent years) but lower rental yields (3-4%).5. **Below AED 1 Million Range**: Primarily studios in emerging areas, offering the highest rental yields (6-8%) but with questions about long-term appreciation and market liquidity.

The AED 1-2.5 million range currently offers the best overall balance, providing good liquidity, attractive yields, and reasonable appreciation potential while remaining accessible to a broader range of investors.

If you plan to live in the property, which areas balance lifestyle, infrastructure, and long-term value?

For residents seeking the best combination of lifestyle, infrastructure, and investment value, several Dubai areas stand out as optimal choices.

Dubai Marina tops the list for lifestyle-focused living, offering waterfront apartments with extensive dining, entertainment, and recreational facilities. The area's mature infrastructure includes excellent connectivity, shopping centers, and community amenities. Properties maintain strong liquidity and steady appreciation, making them ideal for residents who want lifestyle benefits without sacrificing investment value.

Palm Jumeirah provides unparalleled prestige and lifestyle amenities, from private beaches to luxury resorts and world-class dining. While property prices are premium, the long-term value proposition remains strong due to the unique location and limited supply. Infrastructure continues to improve with new developments and connectivity projects.

Downtown Dubai offers the ultimate urban lifestyle with proximity to business centers, luxury shopping at Dubai Mall, and cultural attractions. The area's blue-chip status ensures strong long-term value retention, while residents enjoy access to world-class infrastructure and amenities. Properties range from affordable studios to luxury penthouses.

Emerging areas like Sobha Hartland II and expanded JVC offer modern infrastructure, family-friendly environments, and better affordability compared to established premium locations. These areas provide good value for residents planning longer-term stays while offering appreciation potential as communities mature.

It's something we develop in our UAE property pack.

If you plan to rent out or resell, which property types and neighborhoods position you best for demand and resale liquidity?

Success in Dubai's rental and resale market depends on selecting property types and locations with consistently strong demand and market liquidity.

For rental demand, apartments in Downtown, Dubai Marina, and JVC consistently attract tenants due to their lifestyle amenities and connectivity. Studios and one-bedroom units generate the highest rental yields and experience minimal vacancy periods due to strong demand from young professionals and short-term visitors.

Villas in Palm Jumeirah and The Meadows command premium rents and attract long-term tenants, particularly families and executives seeking luxury living. While rental yields are lower, these properties offer stable income streams and easier tenant retention.

For resale liquidity, apartments in established areas like Downtown, Dubai Marina, and Business Bay maintain the strongest secondary market activity. These locations have proven track records, established buyer bases, and consistent transaction volumes that ensure easier resale when needed.

Properties that consistently perform well for both rental and resale include one and two-bedroom apartments in Dubai Marina, studios in Downtown Dubai, and family villas in Palm Jumeirah and Jumeirah Village Circle. These property types benefit from broad market appeal and strong demand across different tenant and buyer segments.

Avoid oversupplied segments and emerging areas without proven track records if liquidity is a priority. Focus on properties with unique selling points, whether location, amenities, or price positioning, that differentiate them in competitive markets.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Consultancy Middle East - Dubai Property Prices Continue Upward Trend
2. Primo Capital - Dubai Real Estate Market Report July 2025
3. APIL Properties - Dubai Property Prices 2025 Villa vs Apartment
4. Global Property Guide - UAE Price History
5. Lux Living - Dubai Property Price Outlook
6. Aurantius - Dubai Marina vs Downtown Rental Yields
7. Cordova Property - Rental Yields Comparison
8. Deloitte - Dubai Real Estate Predictions 2025