Executive Summary
A Market in Continued Ascent
Dubai's residential market has maintained its upward trajectory through 2025, with median prices per square foot reaching AED 1,403 — a 10.0% increase from 2024's AED 1,276. Transaction volumes have also grown substantially, with over 57,000 ready property sales recorded, a 12% increase year-over-year.
This marks the fifth consecutive year of growth since the 2020 pandemic low, with cumulative price appreciation of 82% from the 2020 median of AED 770 per square foot.
Market Evolution
Five Years of Growth
| Year | Transactions | Median PSF | YoY Change | Avg Price |
|---|---|---|---|---|
| 2025 | 57,714 | AED 1,403 | +10.0% | AED 2.63M |
| 2024 | 51,603 | AED 1,276 | +11.7% | AED 2.42M |
| 2023 | 49,750 | AED 1,142 | +7.7% | AED 2.28M |
| 2022 | 39,297 | AED 1,060 | +15.7% | AED 2.31M |
| 2021 | 29,208 | AED 916 | +19.0% | AED 2.30M |
| 2020 | 16,145 | AED 770 | — | AED 1.91M |
Data filtered: Ready sales only, PSF 500-3,000, size ≥300 sqft, bulk sales excluded. Source: Dubai Land Department (DLD).
Yield Analysis
Highest Yielding Communities
For income-focused buyers, Dubai's affordable communities continue to deliver the highest gross rental yields. International City studios lead at 9.42%, followed by Dubai Production City (IMPZ) studios at 9.29%.
| Rank | Community | BR | Yield | Avg Price | Annual Rent |
|---|---|---|---|---|---|
| 1 | International City | Studio | 9.42% | AED 324K | AED 31K |
| 2 | Dubai Production City (IMPZ) | Studio | 9.29% | AED 426K | AED 40K |
| 3 | Dubailand Residence Complex | Studio | 9.12% | AED 424K | AED 39K |
| 4 | Jumeirah Village Triangle | Studio | 8.75% | AED 547K | AED 48K |
| 5 | Dubai Studio City | Studio | 8.74% | AED 538K | AED 47K |
| 6 | Dubai Silicon Oasis | Studio | 8.66% | AED 458K | AED 40K |
| 7 | Jumeirah Village Circle | Studio | 8.62% | AED 602K | AED 52K |
| 8 | Dubai Sports City | Studio | 8.51% | AED 484K | AED 41K |
| 9 | Remraam | Studio | 8.43% | AED 471K | AED 40K |
| 10 | Dubai South | Studio | 8.34% | AED 477K | AED 40K |
Key Insight: Studios in affordable communities consistently deliver the highest yields (8-9%), but buyers should consider liquidity trade-offs. JVC offers an attractive balance with 8.62% yield and the highest transaction volume in Dubai, with over 1,100 recent studio sales.
Market Activity
Most Active Communities (2025)
| Community | Transactions | Median PSF | Avg Price |
|---|---|---|---|
| Jumeirah Village Circle | 5,753 | AED 1,261 | AED 1.13M |
| Business Bay | 3,675 | AED 1,786 | AED 2.00M |
| Dubai Marina | 2,679 | AED 1,780 | AED 2.33M |
| Downtown Dubai | 2,623 | AED 2,746 | AED 4.10M |
| International City | 1,929 | AED 634 | AED 513K |
| Al Furjan | 1,797 | AED 1,372 | AED 2.62M |
| Dubai Creek Harbour | 1,560 | AED 2,313 | AED 2.79M |
| Dubai Sports City | 1,538 | AED 877 | AED 714K |
| Damac Hills 2 | 1,490 | AED 831 | AED 1.46M |
| Dubai Hills Estate | 1,482 | AED 2,355 | AED 5.42M |
Investment Perspective
Where Are We in the Cycle?
After five years of continuous appreciation, the question market participants face is whether the market has peaked. Several factors suggest continued—albeit moderating—growth:
- Population growth: Dubai's population continues to expand with residency reforms attracting high-net-worth individuals.
- Supply absorption: New supply is being absorbed efficiently, with off-plan launches maintaining strong demand.
- Yield compression: While yields are compressing in premium areas, affordable communities maintain attractive 8%+ returns.
- Price moderation: YoY growth has moderated from the 2021 peak (+19.0%) to a more sustainable +10.0%.
For Income Investors
Focus on affordable communities (International City, IMPZ, DSO) delivering 8-9% gross yields. Accept limited capital appreciation in exchange for steady income.
For Growth Investors
Premium communities (Downtown, Creek Harbour, Dubai Hills) offer lower yields (5-6%) but stronger capital appreciation potential and exit liquidity.
Methodology
Data Notes
Data Source: Dubai Land Department (DLD) transaction records
Transaction Filter: Ready sales only (excludes off-plan and mortgages). This scope covers 57,714 transactions in 2025.
Quality Filters: PSF range 500-3,000, unit size ≥300 sqft, bulk sales excluded, top/bottom 1% PSF outliers removed
Yield Calculation: Annual rent / purchase price based on matched community and bedroom type, 6-month priority with 12-month fallback
Note on YoY Growth: The +10.0% YoY PSF growth shown here reflects ready-property sales only with strict quality filters. Our 2025 Year in Review report reports +5.1% growth using all apartment sales (including off-plan). The difference arises because off-plan properties transact at higher PSF, diluting the all-sales median.
Last Updated: February 2026