Despite concerns about global economic headwinds and a slight deceleration in quarterly growth, the city has recorded record-breaking real estate sales in Q2—underpinned by rising property values, sustained investor confidence, and an unmistakable shift in buyer preferences.
What we are witnessing is not just a cyclical upswing, but a fundamental rebalancing of how value is perceived in Dubai’s residential sector. For those of us deeply immersed in this market every day, the data tells a clear story: villas are king.
The Rise of Villas: A Structural Shift, Not a Passing Trend
Over the past four years, villa communities across Dubai have seen average price increases exceeding 180%. Several high-performing areas such as Jumeirah Islands, Palm Jumeirah, and Arabian Ranches have more than tripled in value, far outpacing any other residential segment.
This is not a temporary reaction to post-pandemic preferences; it is a permanent evolution in buyer behavior.
Today’s investors and end-users alike are seeking more than just a good location—they're looking for space, community, lifestyle, and long-term security. And it’s villa communities that offer all of that in abundance. Whether it’s families upgrading their homes, regional buyers relocating wealth, or international investors banking on capital appreciation, villas have become the go-to asset class in Dubai.
At fäm Properties, this shift has been crystal clear. Our villa sales in Q2 surged across key neighborhoods—Emirates Hills, Jumeirah Park, The Meadows, and Dubai Hills Estate—where availability is limited and demand is deep. In fact, in communities like Jumeirah Islands, price growth was not only the highest this quarter—it was also the most competitive segment in terms of buyer urgency.
Apartments Still Performing—But Buyers Are Getting Selective
Apartments, while not matching the explosive growth of villas, are still experiencing healthy double-digit annual increases. Average capital values for apartments have risen over 70% since 2021. Key areas like Palm Jumeirah, The Greens, and Dubai Silicon Oasis are delivering impressive gains.
What’s interesting is that buyers are becoming more selective in apartment purchases. They’re no longer chasing price—they’re chasing value, location, and amenities. Communities with strong infrastructure, family-friendly layouts, green space, and access to transport are leading the pack.
This is where AYAAN Heights 1 by IGO stands out. Located in the emerging Meydan Horizon, AYAAN Heights offers premium one- and two-bedroom apartments with modern layouts, high-end finishes, and unbeatable proximity to the future Meydan developments and the new metro link. It’s a smart investment today with the potential to become one of tomorrow’s most sought-after addresses.
We’ve seen significant lead generation and off-plan activity at AYAAN Heights over the past few months—investors are recognizing that Meydan Horizon is next in line for long-term transformation.
The Return of Luxury: Prime Segment Shows Resilience
Another dominant theme in Q2 has been the renewed appetite for luxury homes. Properties priced in the upper tier—both villas and apartments—continue to perform remarkably well, even as affordability becomes a growing concern for mid-market buyers.
Luxury villa communities like Emirates Hills, Dubai Hills Estate, and Palm Jumeirah remain highly liquid, with many buyers paying cash and transacting quickly. Price sensitivity is secondary in this segment—what matters more is privacy, prestige, and lifestyle.
And for those looking for something new, gated, and refined, we are proud to introduce TORI Villas by IGO, a boutique collection of luxury homes in Al Furjan. TORI is more than just another villa project—it is a masterfully designed sanctuary, with green spaces, wellness amenities, and modern Mediterranean aesthetics. It taps directly into what high-net-worth buyers are demanding in 2025: exclusivity, calm, and a home that reflects their success.
At fäm, we are seeing TORI generate real traction—not just from residents upgrading from smaller communities, but also from international clients who want a secure, ready villa in a peaceful community that is still just minutes from Sheikh Zayed Road and Dubai Marina.
Rental Market: Strong Yields Sustain Investor Confidence
Rental values in Q2 2025 continued to climb steadily. Villa rentals now average AED 428,000 annually, while apartment rentals have risen to AED 95,500, with particularly strong returns in communities offering larger units with balconies, open layouts, and access to parks or water features.
This is good news for investors. Despite new supply entering the market, demand for high-quality rental stock remains extremely strong, especially from long-term expatriates and corporate tenants relocating to Dubai. With yields holding steady and capital values rising, we expect landlords in strategic communities to continue enjoying strong income and capital appreciation.
Supply Is Growing—But Demand Is Deeper
Yes, there are over 66,000 new units scheduled for delivery in 2025. But only about a third have been completed so far this year. And even with this ramp-up, demand continues to outstrip supply in the villa and luxury segments.
Of all properties currently under construction with delivery dates set through 2029, only 11% are in JVC, and 7% in Business Bay. That leaves large gaps in popular villa enclaves, meaning scarcity will continue to support pricing for ready, well-maintained homes in key communities.
What This Means for You—and How fäm Adds Value
If you’re an investor, now is the time to review your portfolio and diversify into villas and upcoming growth communities like Meydan Horizon and Al Furjan. The gains we’ve seen in Q2 aren’t temporary—they reflect long-term demographic and economic shifts that continue to position Dubai as a global leader in real estate investment.
If you’re an end-user looking for a better lifestyle or a family home, the villa market may feel expensive today—but it’s only going higher. Communities like Jumeirah Islands, Jumeirah Park, Emirates Living, and new launches like TORI Villas still offer compelling entry points compared to international benchmarks.
At fäm Properties, we are more than brokers—we are long-term advisors. We don’t just sell homes; we help you build generational value. With deep community expertise, market-leading technology, and a reputation built on transparency, we make sure you don’t just buy property—you buy right.
Contact Us Today!