The luxury real estate market in Dubai continues to perform exceptionally well. According to a study by Driven Properties and Forbes, Jumeirah Bay is still the market leader in the premium segment, with property prices reaching an impressive 13,068 dirhams per square foot. This figure far exceeds those for other prestigious areas of the emirate.
There has also been high demand in the Jumeirah Second and Umm Al Sheif areas, where prices have exceeded 7,500 dirhams per square foot. Experts note that investor interest is focused on villas and low-rise coastal projects, as well as gated communities with low building density.
Dubai is a global centre for premium real estate.
Areas such as La Mer, Bluewaters Island, Palm Jumeirah and Emirates Hills remain consistently popular due to limited supply, exclusivity and prime locations on the coast or in the city centre. These factors enable Dubai to position itself as one of the world's leading centres for wealthy buyers and investors.
Against the backdrop of growing demand for premium housing, the mid-range segment is also experiencing active development. Areas such as Jumeirah Village Circle are recording high transaction volumes, attracting buyers with more affordable prices and developers' willingness to offer flexible payment terms.
Price growth confirms confidence in the market
Over the past four years, Dubai's residential real estate market has grown rapidly. The average price of completed housing has increased by 64%, rising from AED 1,002 per square foot at the beginning of 2021 to AED 1,642 in the second quarter of 2025.
Villas and apartments have risen in price at almost the same rate, and by mid-2025, they will be equally valuable at around AED 1,903 per square foot. This indicates balanced buyer interest in both family residences and city apartments.
The volume of transactions has also grown impressively, from 10,000 at the beginning of 2021 to over 51,000 in the second quarter of 2025. This is due to population growth, the introduction of long-term visas (including the 'golden' visa) and continuing confidence among foreign investors.
There has been a boom in off-plan projects and new trends
The housing segment under construction deserves special attention. Sales of off-plan properties have grown almost ninefold in four years, rising from 4,219 transactions in 2021 to 36,184 in Q2 2025. Today, this segment accounts for over 70% of all transactions.
Prices for off-plan apartments have reached AED 2,288 per square foot, reflecting the high demand for modern complexes offering branding, developed infrastructure and unique architecture. The price of villas in projects under construction has also more than doubled, rising from AED 834 to AED 1,682 per square foot. According to experts, the market is entering a more mature phase, with buyers beginning to consider not only price, but also the quality of the project, the developer's reputation, and the location.
Outlook for the future
Experts predict that prices will continue to rise in the coming years, albeit at a more moderate pace. The focus will be on sustainable development, creating eco-communities and integrating smart technologies into residential complexes.
According to the latest forecasts by consulting agencies, demand for housing in Dubai will be driven by foreign investors and new residents of the emirate, whose numbers are growing thanks to favourable living and business conditions.