Dubai real estate prices rose by around 12% year-on-year in early 2025, driven mainly by growing demand for apartments across the city. This is the highest increase seen in more than two years. The rise is mainly because more people are buying apartments, which are growing faster in value than villas.
The Dubai housing market is becoming more active as the city’s population grows, the economy stays strong, and more wealthy buyers move in. Property Finder reports that apartment prices increased by 12%, while villas saw an 8% rise in early 2025, showing a change in what buyers are choosing. Popular communities across Dubai have shown strong apartment value growth, especially in affordable and mid-tier locations, according to market analysts.
Dubai housing market shifts toward apartments
Many buyers are choosing apartments because they are cheaper than villas. This has made the Dubai real estate price trend more focused on smaller homes. Rents are also going up, so more people are deciding to buy instead of rent.
Even though demand for villas to buy in Dubai is still there, it is not growing as fast as it did before. More people are now looking for affordable homes that are closer to the city. Villas in places like Arabian Ranches and The Villa community are still popular, but fewer people are buying large homes because of high loan costs and changing lifestyles.
Dubai real estate price trend supports steady growth
The UAE government has helped the market by giving long-term visas and making new property rules. These steps have made many people feel safe about investing, which is helping Dubai real estate prices to grow steadily.
Market reports suggest that the Dubai housing market may continue its upward trend through late 2025, with further price gains expected if demand stays strong. Dubai’s ongoing development and infrastructure projects continue to support long-term investor confidence in the Dubai housing market.
The Dubai real estate price trend shows that now is a good time to invest. While growth for villas to buy in Dubai may be slower, prices are still rising. Buyers have many options in today’s growing market.
