The year 2025 saw Dubai’s property market registering its strongest performance, as the Emirati city made its transition into a more mature and sustainable phase, driven by real and balanced demand across all property asset classes.
Badar Rashid AlBlooshi, Chairman of Arabian Gulf Properties, while decoding the data from business consultancy firm ValuStrat, said that sales into the luxury villa segment saw an annual capital value growth of 25.5%.
He told TradeArabia, “The 206% increase in average freehold villa values in Dubai compared to post-pandemic levels, and their rise beyond the 2014 market peak by 86%, reflects a structural shift in demand. Investors and end users are increasingly focused on quality, location and enduring value.”
The report noted that the best-performing residential areas in terms of villa price growth included Jumeirah Islands, Palm Jumeirah, Green Community West, The Meadows, Victory Heights, and Mudon. These communities combine integrated master planning, strong infrastructure quality, and limited supply.
With regard to apartments, AlBlooshi explained that the highest annual gains recorded in areas such as Remraam, Dubai Silicon Oasis, The Greens, and Dubai Land Residence Complex, which reflected sustained demand for mid-market housing, supported by population growth in the Emirati city and a broad range of demand segments.
The official added, “Apartment prices have surpassed the 2014 peak for the first time, which represents a healthy indicator of market balance and confirms that the current growth cycle is more sustainable than previous cycles.”
While also highlighting the strength of demand within the luxury housing segment, particularly in areas such as Palm Jumeirah, Dubai Hills Estate, Al Barari, Downtown Dubai, and Business Bay, AlBlooshi noted that Dubai’s robust regulatory environment and clear economic vision have continued to support Dubai’s real estate sector, apart from reinforcing investor confidence over time.