“Bayut” identifies the areas with the highest investment returns for apartments and villas in Dubai during 2025

The Bayut real estate platform revealed nine areas in Dubai that achieve the highest investment returns for luxury residential apartments, or those with medium or reduced prices, in addition to seven areas in the villa category.

Bayut identified for Emirates Today three areas in the low price category for apartments, led by Dubai Silicon Oasis with investment returns of about 7.91%, followed by Dubai Sports City, then Arjan area with about 6.97%.

In medium-priced real estate, Jumeirah Village Circle came in the lead with returns of 7.42%, followed by “Jumeirah Lakes Towers” ​​with 7.31%, then “Business Bay” with 6.61%.

It stated that “Dubai Marina” came at the top of the regions with the highest investment return in the luxury apartments category during the current year with a rate of 6.16%, followed by the “Dubai Creek Harbor” area with a return of 5.89%, then “Downtown Dubai” with a return of about 5.78%.

In the villas category, Bayut identified seven areas with the highest investment returns, with Damac Hills 2 taking the lead in terms of low villa prices at 6.41%, followed by Dubailand with 5.35%, then Dubai South with 4.82%.

In the medium-priced villas, “Jumeirah Village Circle” came in the lead with 7.02%, followed by “Arabian Ranches 3” with 5.6%. In the luxury category, “Damac Hills” came in the lead with 5.5%, then “Arabian Ranches 3” with 3.8%.

Real estate market

In addition, a report issued by Bayut revealed that the real estate market in Dubai continued, during the year 2025, to show balanced and stable growth, driven by a combination of increased supply, continued demand from buyers, and changing preferences for living styles.

He explained that low- and medium-sized complexes still attract residents looking for affordable properties, while luxury areas maintain their appeal to investors with high financial capabilities.

The report confirmed that price movements reflect the strong foundations of the real estate market in Dubai, supported by population growth, infrastructure development, government initiatives, and the delivery of new projects, which contribute to enhancing the flexibility and sustainability of the market. It showed that the increase in real estate supply in the emirate is matched by stable demand, which led to price movements that reflect the strength and flexibility of the real estate market, and confirm the soundness of the foundations on which the sector is based.

The report confirmed the continued rise in the average selling prices per square foot for both apartments and villas in a number of prominent residential areas, and the prices of apartments in low-lying areas recorded an increase ranging between 9% and 29%, with Dubai Silicon Oasis achieving the highest growth rate following the announcement of the Blue Metro Line.

The average price per square foot for mid-range apartments in the most sought-after areas in Dubai also increased by 11%, while the increase in prices for luxury apartments ranged between 4% and 7%.

As for villa prices, they have witnessed an increase in various high-demand areas in Dubai.

During the year 2025, the prices of low-end villas increased by 24%, with (Dubai South and Dubailand) recording growth exceeding 20%, supported by the delivery of new projects. The asking prices for mid-range villas also increased by a rate ranging between 17% and 28%, supported by deliveries in residential complexes such as Murooj Al Furjan, Bliss, and Kaya in “Arabian Ranches 3.” In the luxury category, villa prices recorded increases of up to 16% in Areas such as Arabian Ranches, Dubai Hills Estate, and Damac Hills.

Rental prices

Rental prices generally stabilized in Dubai during the year 2025, with continued momentum in low-lying areas, with residents moving towards budget-friendly housing options. The report revealed an increase of about 21% in rents for low-end apartments, with “Deira” achieving the highest rates of increase in family units, and rents for medium-class apartments increased by about 7%.

On the other hand, rents for luxury apartments witnessed general stability, with some decreases of up to 5% recorded in specific areas, such as Dubai Marina and Dubai Creek Harbour, and rents for low-end villas rose by a rate ranging between 5% and 24%, with the highest growth recorded for four-bedroom villas in Dubai South, and rents for mid-range villas rose by about 15%, while four-bedroom villas in Arabian Ranches 3 recorded a noticeable jump of nearly 70%.

In terms of luxury villas, rents witnessed an overall decline of 24%, but five- and six-bedroom villas in Dubai Hills Estate recorded significant increases of 79.5% and 27.7%, respectively, as a result of limited supply in this category.

Rental returns

Low-rise apartments in International City, Dubai Investment Park, and Discovery Gardens achieved strong rental returns of between 9% and 10%.

In the medium category, the Living Legends, Town Square, and Al Furjan areas recorded returns ranging between 7% and 9%, while investments in luxury apartments in Al Sufouh, Damac, Hills, and Green Village achieved returns exceeding 7.62%.

Villas also continued to provide competitive returns, as Damac Hills 2, Serena, and International City topped the low category with returns exceeding 5.4%. Mid-range villa complexes, such as Jumeirah Village Circle, Mudon, and Town Square, recorded returns ranging between 5% and 7%, while in the luxury category, villas in Mohammed bin Rashid City, Al Barsha, and Al Barari achieved rental returns exceeding 5.8%.

The real estate market in Dubai continued, during 2025, to show balanced and stable growth, driven by increased supply, continued demand from buyers, and changing lifestyle preferences.

---

Maturity stage

Haider Ali Khan, CEO of Bayut and Chairman of the Dubizzle Group in the Middle East and North Africa and Member of the Board of Directors of the Dubai Chamber for Digital Economy, confirmed that “the real estate market in Dubai is witnessing an advanced stage of maturity, as the new supply has become more consistent with the real demand from users and property seekers, moving away from patterns of short-term speculation.”

He said: “Although price sensitivity continues to influence purchasing and rental decisions, market participants are now paying increasing attention to basic elements that include quality of lifestyle, location, and building standards.”